29 Mar 2021

The AUM of the Canadian ETFs climbs quickly

Canada has approved 3 ETFs recently, and they have experienced rapid growth. Just weeks after launching, their combined AUM is above $1bn.
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Source: NYDIG Data
Since 2017, investors have been waiting for an ETF approval. Now, Canada has begun approving ETFs, and they’ve already gained a lot of traction. ETFs have the perk of allowing market makers to create and redeem shares at will. A premium on ETFs is therefore unlikely if enough liquidity is in place. Investment trusts, such as the Grayscale Bitcoin Trust, do not have an active redemption program in place and are structured with a lock-up period for investors in the primary markets. In that regard, ETFs are therefore more efficient investment vehicles than trusts, which could help explain the rapid growth of the ETFs since launch. Currently, 19,717 BTC are under management in Bitcoin ETFs, valued at over $1 billion. The Purpose ETF holds 15,137 BTC, while CI Galaxy holds 3,348 BTC, and Evolve 1,232 BTC. The Bitcoin ETFs AUM now account for 2.5% of the bitcoins under management in the bitcoin investment vehicle sector, and we expect it to grow onwards.
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