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America’s first Bitcoin ETF hits a record high trading volume after 2 weeks of strong inflows

America's first Bitcoin ETF hits a record high trading volume after 2 weeks of strong inflows

The first Bitcoin futures exchange-traded fund (ETF) in North America, the Purpose Bitcoin ETF, designed to provide investors with risk-adjusted returns above outright token ownership has climbed to a new all-time high in the number of Bitcoins it holds.

As things stand, the Canadian ETF currently holds 36,271.8BTC and has seen a net gain of 2,473.5BTC in the previous two weeks, according to data from on-chain data analytics platform Glassnode shared by Wu Blockchain on March 25.

The rise has occurred as a result of a huge infusion of capital since both the general mood of the market and the price of Bitcoin have improved over the last two weeks.

Purpose Bitcoin ETF holdings. Source: Glassnode

ProShares ETF

Meanwhile, following two weeks of robust inflows, the total Bitcoin exposure in the ProShares ETF, which trades under the symbol BITO on the New York Stock Exchange, has also risen to a new all-time high of more than 28,000 BTC, as per information from Arcane Research.

ProShares BITO exposure climbs to a new ATH. Source: Arcane Research

There may be spillover effects on Bitcoin prices as market makers pursue delta neutrality, which may encourage them to acquire more in the spot markets to counter any potential net short exposure. 

On the whole, the large inflows into BITO imply that conventional investment vehicles’ enthusiasm for Bitcoin is growing.

The effect of Bitcoin ETFs on the crypto market

Notably, the cryptocurrency market soared beyond $2.5 trillion when the U.S. Securities and Exchange Commission (SEC) approved the first Bitcoin futures exchange-traded fund back in October 2021.

Finally, it’s important to note that a futures ETF is not the same thing as a conventional exchange-traded fund, which crypto proponents have been lobbying for quite some time now. 

A standard ETF offers investors exposure to the underlying asset,  but a futures ETF only allows investors to bet on the price of the underlying asset (in this case Bitcoin).

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