Canada Based Purpose Bitcoin ETF Attracted Over 1,000 BTC in Inflows
- A total of $132 million in BTC has left the market this year.
- ETFs, serve as a proxy for the cryptocurrency market’s interest in Bitcoin.
It was the third-largest daily inflow of Bitcoin (BTC) for the Purpose Bitcoin ETF, based in Canada. According to statistics given by Glassnode, investors contributed roughly 1,054 BTC to the fund, which is somewhat less than the inflows reported on December 6, 2021 data.
However, the capital infusion proved out to be less than half the amount that entered the Purpose Bitcoin ETF when it launched on February 22, 2021 – more than 2,250 BTC. The spot price performance of a Bitcoin ETF is replicated, enabling investors to acquire exposure to the cryptocurrency market without owning any real BTC. By purchasing genuine Bitcoin with funds raised from investors, ETFs serve as a proxy for the cryptocurrency market’s interest in Bitcoin.
Advantage of Decline in Bitcoin Price
Most investors assume that fund inflows drive higher asset values because they attract additional return-seeking investors. If all goes according to plan, Bitcoin’s price should rise with the fund inflows. On February 3, Bitcoin’s price hovered at $37,000, nearly three months after reaching a record high of $69,000. The increased inflows appeared despite the recent market fall.
While this has been happening, the Purpose Bitcoin ETF reserves’ total BTC holdings have risen from 24,100 to a little over 31,100 in the same period. That shows that investors in the Purpose ETF have been taking advantage of the decline in Bitcoin.
CoinShares released a report on January 31 stating that the Bitcoin funds have received $22 million worth of BTC per week as of January 28. A total of $132 million in BTC has left the market this year. As a result, total assets under administration at all Bitcoin funds fell to a low of $29 billion in January before rising to over $31 billion in February.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
