The first publicly traded bitcoin exchange-traded fund (ETF) reached $421.8 million in assets under management in two days
Som Seif, Purpose Investments CEO, whose company is behind the first publicly traded ETF, spoke to Coindesk about working with regulators and what the ETF approval means for the market and investors.
Purpose Investments’ bitcoin ETF was officially launched on Thursday on Toronto Stock Exchange and quickly collected nearly half a billion dollars, with analysts projecting $1 billion within a week.
The company started working with local regulators and filed for ETF back in 2017, but according to Seif, the market was not ready at the time due to lack of proper tools and infrastructure, like custodial element, trading, liquidity, etc. Fast forward, ETF is an efficient way to provide people with some exposure to a digital assets market.
Asked whether Canadian regulators decision could become a pathway for US regulators approving an ETF, Seif suggested that it may become the case. As investors inevitably go after an asset in demand, regulators can facilitate the process by establishing a legal framework to provide efficiency and investor protection.
Another bitcoin ETF, the Evolve ETF, started trading on the TSX on Friday, gathering $1.271 million AUM. Both Evolve and Purpose Investment’s bitcoin ETFs charge a management fee of 1%.