Bitcoin (BTC) demand among Canadian investors has not wavered during the recent price correction, providing further evidence that market participants are benefiting from sharply reduced prices.
The Purpose Bitcoin ETF launched in February accumulated 19,692,149 BTC on June 13, according to Bybt. The ETF has added 284.51 BTC in the past seven days and nearly 2,000 BTC since May 15.
In fact, the ETF topped up its holdings during the May 19 flash crash that saw Bitcoin drop below $ 30,000 before quickly recovering.
With a current BTC price of around $ 36,000, the Purpose Bitcoin ETF is worth over $ 709 million. Assets soared to over $ 1.3 billion in less than two months of operation.
According to tech Byzantine General, inflows into the Purpose ETF suggest Canadians are not concerned about Bitcoin’s short-term price movements.
Ha. The Canadians don’t seem to give a shit.
They keep adding $ BTC to the ETF even though the price goes down. pic.twitter.com/SM9Zxiuiwv
– Byzantine General (@ByzGeneral) June 13, 2021
In fact, Bitcoin’s price action in less time has been a cause for concern for the bulls. The flagship cryptocurrency languished below $ 40,000 for the last month, with any attempt to reclaim that level being vigorously rejected. A combination of technical glitches, weakening sentiment and negative headlines contributed to the bearish move.
Connected: “Discounted” Bitcoin will reach $ 100,000 more than $ 20,000 in 2021, says Bloomberg analyst.
Analysts remain divided over the course of Bitcoin’s market cycle. Some believe we are still on our way to breaking triple digit levels this year, while others believe we are headed for a bear market. Inflows into the purpose funds suggest that many investors ignore short-term fluctuations in favor of a longer-term perspective.
Fund managers in the United States hope to replicate the success of their Canadian counterparts by launching their own Bitcoin ETF. As Cointelegraph reported, the US Securities and Exchange Commission has begun formal reviews of three ETF proposals, with the first decision expected later this month.