What’s Next for Bitcoin as World’s First ETF Breaks $1B Mark

The Purpose Bitcoin ETF (TSX: BTCC), the first North American Bitcoin ETF, has hit the $1 billion USD (C1.25 billion) mark in assets in less than two months since launch, according to a statement from the fund’s issuer.

BTCC is the world’s first physically-backed Bitcoin ETF. The ETF invests directly in physically settled Bitcoins, not derivatives, allowing investors exposure to the crypto asset without the risk and hassle of self-custody.

“When we launched Purpose Bitcoin ETF, we knew we were filling a void in the market. Hitting this milestone so quickly proves that investors are seeking convenient, safe access to cryptocurrencies and shows their confidence in our ETF as the premier vehicle for that exposure,” said Som Seif, founder and CEO of Purpose, said in the release.

When BTCC first launched in February, the fund leapt out of the gates with $165 million worth of shares traded its very first day, a giant start, especially for a Canadian ETF.

No such Bitcoin ETF yet exists in the U.S., though eight firms including WisdomTree and VanEck have filed applications and are awaiting SEC approval.

Market observers are hopeful the SEC will make its decision soon, however, as cryptocurrency increasingly gains traction with institutional and retail investors alike.

“Purpose is helping to bring cryptocurrency into the mainstream,” said Brian Mosoff, CEO of Ether Capital, in the release. “Cryptocurrency ETFs have the potential to be truly revolutionary and are an important investor conduit into the space as the ecosystem continues to mature.”

The price of Bitcoin soared to $62,749 late Wednesday, as Coinbase finally launched its IPO.

See also: With Coinbase Going Public, Here’s What ETF Investors Need To Know

But it wasn’t the introduction of Coinbase trading driving up Bitcoin prices, argued Mati Greenspan, founder and CEO of Quantum Economics, in a recent note to clients on Wednesday. Instead, reported Coindesk, it’s the overall bull trend in cryptocurrency.

“Coinbase isn’t pumping bitcoin. Bitcoin is pumping Coinbase,” wrote Greenspan.

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