Canadian Bitcoin ETFs reach an all-time high, with 69,052 BTC in their assets.
The secret to the success of Bitcoin ETFs
Exchange-traded funds, or ETFs for short, are instruments that allow investors to get a foothold in the world of cryptocurrencies without buying them directly. They alleviate investor concerns and have decent returns despite the macroeconomic situation being very complex and full of risks.
Bitcoin has been very volatile since the beginning of the year, but has sent out distressing signals that it has a lot to give despite the world having to contend with war.
Satoshi Nakamoto’s crypto recently hit an all-time high of $47,000 this year, boosting the returns of the relevant ETFs.
Canadian Bitcoin ETF holdings have increased by 6,594 BTC since the beginning of the year to an all-time high of 69,052 BTC.
According to Glassnode, the Purpose Bitcoin ETF has grown by 18.7% over that period, generating the largest increase in holdings.
Despite the safety and reliability of the product, Bitcoin ETFs are not yet available in the US market, leaving the Canadian market to take the lead. However, investors have great interest in the product and hope that it will soon be available in the US.
Onchain Week’s report highlights how the rate of crypto exchange runoff has reached its monthly high with trades of 96,200 BTC.
Glassnode reported that:
“It is quite impressive to see such strong outflows from trade (spot holdings), as well as inflows in both ETF products, DeFi applications and on-chain accumulation portfolios, despite the numerous macroeconomic and geopolitical headwinds of recent months”.
Confirming the above, these types of products are attracting capital despite the uncertain times the economy and the world in general is going through as we navigate through inflation, energy crisis, pandemic and war.
Among the biggest buyers is Luna Foundation Guard (LFG) of Terra, which recently bought $139 million worth of Bitcoin, bringing the total to 31,000 BTC held.
In its analysis, Glassnode continues:
“The Bitcoin network has mined the 19 millionth BTC, while the accumulation by shrimp alone exceeds the daily emission by 1.7 times. This week also saw an influx of purchases from Luna Foundation Guard, inflows into Purpose ETFs and 1k + $ BTC whales”.
Depending on the sizes, investors are divided into Shrimp (up to 100 BTC) and Whales all those ranging from 1000 to 10,000 BTC in their portfolio.
On 1 April, the coin was mined to reach 19 million total Bitcoin in circulation, and for a cryptocurrency that has a cap of 21 million, this is a very important symbolic step.
The scarcity of this asset will also begin to be decisive in terms of its ability to retain its value over time and this characteristic brings it ever closer to the very popular comparison with safe haven assets such as gold.
Only 2 million BTC remain to be mined, but demand is growing, as more and more countries, institutions and investors are interested in this world and set foot in it for the first time, indirectly increasing the value and solidity of the asset.
Finally, the report concludes:
“The scarcity and pristine nature of Bitcoin as a guarantee could return to the fore once again”.