Purpose Bitcoin ETF Holdings Hit New High as Canadians Buy the Dip

Despite Bitcoin’s price correction to $23,800 in May, institutional investors appear reluctant to lose faith in the cryptocurrency.

Launched in February 2021, the Purpose Bitcoin ETF has seen consistent inflows over the past five trading days. According to Glassnode data reported by Jan Wustenfeld, the fund’s holdings had grown to 43,701.7 BTC as of Tuesday. This is the highest level ever.

Notably, the Canadian spot bitcoin ETF bought 2,006 BTC on Thursday and 2,780 BTC on Tuesday.

The inflows appear to be in line with a broader short-term trend of institutional buyers reinvesting in cryptocurrencies. According to data from Coinshares, the accumulated inflow of digital asset investment products last week was 87 million U.S. dollars, of which Bitcoin products accounted for 69 million U.S. dollars.

The news eased digital asset outflows from last month’s market meltdown, with institutional funds losing a total of $141 million during the week of May 24. This is the highest outflow since July 2021.

However, the total assets under management (AUM) metric remains at its lowest point since mid-2021, as some institutional buyers appear to be waiting for lower prices to funnel cryptocurrencies into their funds again, according to a Coinshares report.

Looking ahead to the market, analysts still appear to be bearish in the short-term, predicting a drop to $14,000 and calling the recent price surge a bull trap. Meanwhile, the long-term forecast remains positive, with holders still accumulating Bitcoin and the younger generation remaining bullish.