World’s First Bitcoin ETF Adds $3 Million Per Day During BTC Price Drop

The news provides a delightful counter-narrative to the institutional test facing Bitcoin in the wake of its price decline.

The world’s first regulated bitcoin (BTC) exchange-traded fund (ETF) actually benefited from the recent price drop, data shows.

As Glassnode, an on-chain analytics service, pointed out on Thursday, assets managed by Purpose’s bitcoin ETF continued to increase throughout the second half of May.

Purpose ETF Manages Over 20,000 BTC
Over the past few weeks, we’ve seen an unusual success story. Canada’s Purpose has not seen a significant decrease in holdings or demand after reaching $30,000 and below in BTC/USD.

Since May 15, an average of 86.15 BTC per day has entered the ETF, with a total of 3,446 BTC inflows between then and Thursday.

In total, Purpose now holds 21,114 BTC, worth about $720 million.

“Purpose Bitcoin exchange-traded fund (ETF) has been on the rise since the May 19 market crash,” the well-known Twitter account Dilution-proof concluded in a variety of positive reactions to the data.

Purpose received the green light from regulators in February 2021 and is the first bitcoin ETF of its kind. as Cointelegraph reports, the U.S. has yet to respond, but if the product also gets its debut there, the impact could be even greater given the difference in size between the U.S. and Canadian markets.

“How many countries will have bitcoin ETFs trading before the U.S.?” Jameson Lopp, co-founder and chief technology officer at Casa, posed the question this week.

Concerns about a potential sell-off wave
The news provides a pleasant counter-narrative to the institutional test facing Bitcoin after its price decline.

In the coming weeks, BTC stored in the Grayscale Bitcoin Trust (GBTC) will be unlocked, which is expected to exacerbate an already intense selloff.

The actions of the giant whales have also received attention recently, but players like MicroStrategy continue to add to their BTC positions to even things out.

Posted by:CoinYuppie,Reprinted with attribution to:
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