Canadian Bitcoin ETF adds to its holdings despite steep market correction
The Purpose Bitcoin exchange-traded fund has been reaccumulating BTC since mid-May, a sign that investors are keen to buy the dip.
Demand for Bitcoin (BTC) among Canadian investors has not wavered amid the latest price correction, offering further evidence that market participants are capitalizing on heavily discounted prices.
The Purpose Bitcoin ETF, which launched in February, has now accumulated 19,692.149 BTC as of June 13, according to Bybt data. The ETF has added 284.51 BTC over the past seven days and nearly 2,000 BTC since May 15.
In fact, the ETF added to its holdings during the May 19 flash crash that saw Bitcoin wick down below $30,000 before quickly recovering.
At a current BTC price of around $36,000, the Purpose Bitcoin ETF has a value of over $709 million. Assets swelled to over $1.3 billion in less than two months of operations.
According to technician Byzantine General, inflows into the Purpose ETF suggest Canadians aren’t concerned about Bitcoin’s short-term price action.
Ha. The Canadians don’t seem to give a fuck.
They just keep adding $BTC to the ETF despite price going down. pic.twitter.com/SM9Zxiuiwv
— Byzantine General (@ByzGeneral) June 13, 2021
Indeed, on a shorter time scale, Bitcoin’s price action has been a source of concern for the bulls. The flagship cryptocurrency has been languishing below $40,000 for the past month, with each attempt to reclaim that level being firmly rejected. A confluence of technical breakdowns, weakening sentiment and negative headlines have contributed to the bearish price action.
Related: ‘Discounted’ Bitcoin more likely to hit $100K than $20K in 2021, says Bloomberg analyst.
Analysts remain divided on the trajectory of Bitcoin’s market cycle. Some believe we are still on track to break triple-digit levels this year, while others believe we are heading for a bear market. Inflows into the Purpose fund suggest many investors are ignoring short-term fluctuations in favor of a longer-term view.
Fund managers in the United States hope to replicate the success of their Canadian counterparts by launching a Bitcoin ETF of their own. As Cointelegraph reported, the United States Securities and Exchange Commission has begun a formal review of three ETF proposals, with the first decision expected later this month.