Canada’s Bitcoin ETFs Slowing Down Despite Initial Buzz
The idea of Bitcoin Exchange Traded Funds (ETFs), funds that allow you to invest in the cryptocurrency without holding it or even have any exposure to the digital assets, is perceived to be an innovation that will further boost the fortunes of the cryptocurrency. However, the launch of both Purpose and Evolve Bitcoin ETFs was met with wide applause when it launched in Canada last month, as they became the first Bitcoin ETFs in the country to begin operation. However, the buzz and excitement that met the historic Bitcoin ETFs have seemed to sort of slow down a bit, as analysts believe that reality is playing its part in their fortunes already.
Both Purpose and Evolve Bitcoin ETF are already struggling
The first Bitcoin ETF to launch was Purpose, and the Bitcoin ETF became an instant success as it traded a record-breaking $80 million worth of shares in its first hour of launch and about $170 million barely 24hours after it began operations. The price of Bitcoin now seems to take its toll on the Bitcoin ETF, as the value of the 10,000 Bitcoins under its management is now barely worth $460 million. The shares of the Bitcoin ETF, popularly seen as BTCC in the Toronto Exchange, had dropped by at least 6.2% in the last 24hours and currently trades at about $8.50.
The trading Volume of the BTCC has also dwindled in the last three days after a low of about $22 million 24hours ago. On the other hand, Evolve Bitcoin ETF, which launched shortly after Purpose ETF, was also successful in its first 48hours of operation, as it raised about $400 million. The price of its shares has also dwindled a bit for a while, as it currently trades at about $17.10, amidst a 6% drop in fortunes in the last 24hours. The estimated gross assets under the Evolve ETF are pegged at about $40 million as of today.
The fortunes of Bitcoin are believed to be responsible
Many analysts are starting to affiliate the Bitcoin ETF struggles to Bitcoin, believing that the cryptocurrency fortunes is responsible for their early struggles. However, Eric Balchunas of Bloomberg believes that this occurrence is regular, as he didn’t expect the initial craze to last long. He believed that the successful launch of the first Bitcoin ETF in the world was enough reason for the early success; he hopes to see something different soon.
Eric also, like many analysts, believes that the ill fortunes of Bitcoin, which had seen the cryptocurrency dwindle in fortune, was also to be blamed. However, the crypto analyst believes that the current numbers being posted by both ETFs are not so bad, considering that they are in their early days. Eric feels that if both Bitcoin ETFs had posted the same numbers under the U.S SEC, they would still be considered a success regardless. However, like Eric and many other analysts, the public will expect the bull season predicted by analysts for Bitcoin, will positively
impact the fortunes of the Bitcoin ETFs as soon as possible.