Cryptocurrencies

Bitcoin ETFs: A look back at a historic launch

March 8, 2021 - 1 minute
bitcoin logo on coins

February was truly a historic month for financial markets and Canada with the launch of the world's first and second Bitcoin ETFs. Both funds got off to a successful start with very strong trading volumes and quickly developed a growing fandom of investors.

Despite the many unknowns of launching a world's first product and the early days of digital currencies, Bitcoin ETFs launched smoothly with the benefits of the ETF structure shining bright and investors flocking to these ETFs.

Here are some early takeaways from this historic first week:

  • Nearly C$1B worth of Bitcoin ETFs traded in 3 days. These high volumes out of the gate made them the most actively traded Canadian ETFs in the first week of trading.
  • Gathering nearly C$600M in AUM in just 3 days. The asset gathering potential of Bitcoin ETFs signaled the demand and stickiness of cryptocurrency investments.
  • NAV premiums closing at 0.2% by the third day of trading. Unlike close-end funds, Bitcoin ETFs trade very close to their NAV given the ability of market makers to arb any premiums to NAV through the creation/redemption facility.
Disclaimer

headshot of Andres Rincon


Director and Head of ETF Sales & Strategy, TD Securities

headshot of Andres Rincon


Director and Head of ETF Sales & Strategy, TD Securities

headshot of Andres Rincon


Director and Head of ETF Sales & Strategy, TD Securities

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