The approval of spot Bitcoin ETFs in the United States has triggered a significant shift in the global Bitcoin landscape, despite initial optimism about increased adoption. As the US market advances, Purpose Bitcoin ETF, Canada’s largest Bitcoin ETF issuer, has witnessed a surprising trend – massive selling of Bitcoin holdings. Here are the details about the Bitcoin ETF issuer’s cryptocurrency sales…
Purpose Bitcoin ETF sells cryptocurrency
Data from HODL15 Capital reveals that the Purpose Bitcoin ETF has sold over 5,000 BTC since the US spot Bitcoin ETF launch. This represents a significant decrease in assets from 35.71 thousand BTC to 30.76 thousand BTC. The selling spree started with 199 BTC sold on Friday and continued with 604 BTC sold last week alone.
The SEC’s approval of spot Bitcoin ETFs in the US has put the country in the spotlight and it now holds an 83.3% share of the global spot Bitcoin ETF market. This is in stark contrast to Canada’s previous dominance of 46.3%, according to CoinGecko research. Combined assets in the 10 spot Bitcoin ETFs in the US stand at a staggering $34.78 billion, compared to a global market cap of $41.74 billion.
Canadians are cautious
The selling frenzy in the Purpose Bitcoin ETF shows that Canadian investors are taking a cautious approach following the entry into the US market. This may be due to a variety of factors, including:
- Uncertain regulatory environment in Canada: While Canada has the world’s first Bitcoin ETF, it is physically settled, unlike US spot ETFs. This difference may cause hesitation among some investors.
- Increasing competition: Entry into the U.S. market could be perceived as a threat to Canada’s dominance and could lead some investors to diversify their holdings.
- Changing market sentiment: As Ethereum and altcoins gain traction, some investors may exit Bitcoin, leading to selling pressure on Canadian ETFs.
Recent Bitcoin price movements further strengthen the cautious mood. Despite the positive impact of spot Bitcoin ETFs in the US, the price is down over 1% this week, currently trading at $51,013. The 20% decrease in trading volume in the last 24 hours also shows that interest among traders has decreased. Additionally, analysts are expressing skepticism about further upward momentum for Bitcoin and the focus is shifting to Ethereum and altcoins. As a result, the launch of spot Bitcoin ETFs in the US has undoubtedly reshaped the global market.
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