Bitcoin has been enjoying renewed attention in recent weeks, largely driven by increasing speculation around the approval of a spot ETF by the Securities and Exchange Commission (SEC). The potential opportunity appears to be driving increased investment into Bitcoin and digital currency funds globally, with Bitcoin topping the $35k threshold on Tuesday - an 18-month high - before dropping to $34.5k. Nonetheless, even accounting for the dip, this rebound resulted in a week-on-week growth rate of 13%, with the FT Wilshire Bitcoin Blended Price Index gaining +15.28% over the week to reach three-digit year-to-date performance (+108.17%).
This notable increase can be largely attributed to BlackRock (NYSE:BLK)'s Bitcoin ETF (TSX:EBIT) (IBTC). Its ticker has been listed on the Depository Trust & Clearing Corporation (DTCC) site, suggesting that SEC approval could be forthcoming. The launch of this fund is highly anticipated by US players across the cryptocurrency sphere and, should it receive approval, would make it the first US spot ETF to invest physically in Bitcoin. Currently, the only crypto funds available in the US use futures contracts, forcing investors to turn to other markets such as Canada or Europe for spot exposure.
And, with financial markets again experiencing a decline this week, some investors are starting to see Bitcoin as a potential safe haven investment during downturns, a role that the popular cryptocurrency appears to be increasingly adopting, at least for the present. As an example, Purpose Bitcoin ETF - CAD (BTCC.B) gained +15.18% over the week, bringing its year-to-date performance to +105.84%.
Segments: Cryptocurrency & Bitcoin
Index Data
Funds Specific Data: BTCC.B, BTCX.B, EBIT, BTCQ, FBTC
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