Recent research has shown that Bitcoin’s holdings of Canadian exchange-traded funds (ETFs) have reached all-time highs and that cash products are leading the way.
Canadian Bitcoin ETFs increased their holdings by 6,594 Bitcoin (BTC) from January to an all-time high of 69,052 BTC in total.
The Purpose Bitcoin ETF experienced the largest increase in holdings during this period with a net growth of 18.7% to 35,000 BTC, according to Glassnode.
An ETF is a publicly traded fund that allows investors to speculate on the price of an asset without having to own it themselves. The Purpose Bitcoin ETF, a cash-based Bitcoin ETF, currently has approximately $ 1.65 billion in assets under management. There are currently no Bitcoin ETFs available in the United States, but metrics show that investors are hungry for the Canadian product.
Blockchain analysis firm Glassnode noted in its recent Week OnChain report that the outflow rate of cryptocurrency exchanges peaked in 2022 at 96,200 BTC per month.
The analysis provider commented on the juxtaposition of events on Bitcoin movements saying:
“It is quite impressive to see such large outflows of exchanges (cash arrangements) as well as inflows into ETFs, DeFi applications and chain accumulation portfolios, despite the many adverse macroeconomic and geopolitical winds of recent months.”
Bitcoin’s build-up has been strong since mid-March. The largest accumulators were the so-called prawns and whales. Prawns are investors that have between 0 and 100 BTC, while whales are those that have between 1,000 and 10,000 BTC.
Among the most important recent buyers is the Terra Foundation Guard (LFG) of Terra, whose mission is to acquire $ 3 billion in BTC.
With only 2 million BTC to extract since the 19th coin was mined on April 1, the shortage of Bitcoin is becoming a major problem as adoption and investment increase among nations. , businesses and communities.
Glassnode concluded that “the scarcity and pristine nature of Bitcoin as collateral may once again stand out.”