The world’s first regulated Bitcoin (BTC) exchange-traded fund (ETF) actually benefited from the recent price dip, data shows.
As on-chain analytics service Glassnode noted on June 24, the Purpose Bitcoin ETF continued to add to its assets under management throughout the second half of May.
Purpose ETF crosses 20,000 BTC
In an unusual success story from the past few weeks, Canada’s Purpose did not see a significant reduction in holdings or demand after BTC/USD hit $30,000 and under.
Beginning May 15, an average of 86.15 BTC per day entered the ETF, for a total of 3,446 BTC between then and June 24.
In total, Purpose now holds 21,114 BTC worth around $720 million.
“Ever since the May 19th capitulation event, the Purpose Bitcoin Exchange Traded Fund (ETF) just keeps stacking sats,” popular Twitter account Dilution-proof summarized in one of various positive reactions to the data.
Purpose was the first such Bitcoin ETF to get the green light from regulators in February 2021. As Cointelegraph reported, the United States has yet to respond, but should the products likewise get a debut there, the impact could be more significant given the difference in size between the U.S. and Canadian market.
“How many countries are going to have Bitcoin ETFs trading before the United States?” Jameson Lopp, co-founder and CTO of Casa, quizzed this week.
Worries over potential upcoming sell wave
The news provides a pleasing counter-narrative to the institutional trials facing Bitcoin post price drop.
Related: Is Wall Street becoming less interested in Grayscale’s Bitcoin Trust?
The coming few weeks will see unlocking of BTC stored in the Grayscale Bitcoin Trust ($GBTC), something which is expected to heighten already intense selling pressure.
one thing we haven’t discussed yet – the grayscale $GBTC unlock schedule is looking really crusty
from mid-april to mid-june, 139,000 bitcoin worth of shares have unlocked. there’s another 140,000 bitcoin worth of shares that will unlock through the end of july
— Meltem Demir◎rs (@Melt_Dem) June 23, 2021
Whales have also come under the spotlight recently, balanced only by players such as MicroStrategy continuing to add to their BTC positions.