Purpose Bitcoin ETF, one of the Bitcoin spot-settled ETFs trading in Canada, has just recorded its third-largest single-day increase in assets under management. According to data from Glassnode, 1054 Bitcoins were added to the ETFs holdings yesterday. The data indicate that the ETF investors are buying the dip, and could mark market sentiments turning bullish for Bitcoin.
Canada’s Purpose Bitcoin ETF investors buying the dip
The holdings of Purpose Bitcoin ETF saw a massive uptick yesterday going by data from Glassnode. The Canada-based ETF added 1,054 Bitcoins to its holdings (over $38 million worth of Bitcoin). The daily increase is surpassed only by two other days which are the day the ETF was issued when 2,250 BTC was added, and December 6th.
The massive single-day move indicates that investors are buying the dip. The addition of more Bitcoins to the ETFs holding is indicative of the ETF shares being overbought by investors and needing to balance its assets by buying more spot Bitcoin.
This in turn marks that the bear market may be nearing a close and turning bullish. The price of Bitcoin has been showing signs of recovery from its slump. Since entering February, the price of Bitcoin has reached a high of over $39,000. However, the market seems unsettled still as the price has fallen back to around $36,500, falling -4.70% on the day.
Bitcoin spot ETFs continue to be denied in the US market
Bitcoin spot ETFs give investors direct exposure to the benchmark cryptocurrency without having to buy and manage the assets themselves. This is because they closely track the behavior of the Bitcoin spot market. While Canada has several Bitcoin spot ETFs, the US is yet to approve its first.
The SEC has continued to deny applications for a spot-settled Bitcoin ETF. In 2022, they already denied SkyBridge Capital, and Fidelity’s spot Bitcoin ETF applications citing that the proposals did not meet the required standards for investor protection and fraud detection. Despite this, market participants expect 2022 to be the year that a Bitcoin spot ETF will be approved in the US. When this happens, the market anticipates that a price surge in Bitcoin will follow.
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