The fall in the price of bitcoin has come with different effects for different types of investors. Like institutional investors, retail investors who invest directly in the market have suffered huge losses. The most prominent of these has been the Canadian bitcoin ETF, Purpose, which posted some of the biggest losses in the space.
Canadian Bitcoin ETF Bleeds
Objective ETF is Canada’s largest bitcoin ETF. It held around 50,000 BTC before the market crash, making it a huge player in the bitcoin ETF game. However, the downturn in the market has not come as any good news for Purpose, causing it to suffer some major losses.
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As of Thursday, bitcoin price had fallen near its previous cycle peak and was trading above $20,000. This sell-off will spread across the ETF, causing the total assets under management (AUM) to fall. The decline that started on Thursday had fallen to 24,545 BTC during this period. This translates to a 51% drop in all AUM for the purpose.
This is the largest redemption in the history of the ETF and this forced sell may be one of the key triggers that have seen the price of bitcoin drop from previous cycle peaks. This has effectively wiped out all the inflows recorded at the beginning of the month in the Bitcoin ETP.
Purpose ETF loses 50% of BTC | Source: Arcane Research
This has led to the ETP outflow reaching 18,315 BTC in the month of June alone. This translates into the worst month in the history of all bitcoin ETPs and has effectively ended Purpose’s position as the largest ETP provider in the region.
buying a lamp
With huge amounts of bitcoin flowing in from Canadian ETFs, there are some who have taken the opportunity to fill their bags during this time. The ProShares BITO ETF has been at the forefront of this accumulation effort.
BTC struggles to maintain above $20,000 | Source: BTCUSD on TradingView.com
Over the past week, BITO has seen a massive influx, which has seen its bitcoin exposure add another 4,155 BTC, reaching a new all-time high. It is not too far-fetched to assume that the bitcoins being picked up by US ETFs are being diverted from their Canadian counterparts. This is the second largest weekly inflow for BITO after the launch week with a total of 19,065 BTC.
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These trends point to a potentially positive sentiment among US investors. The sell-off in the market has driven prices down, but it has also driven out woodworking investors who see current prices as a way to acquire digital assets at a discount.
Featured image from CoinDesk, charts from Arcane Research and TradingView.com
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