Bitcoin ETFs: A look back at a historic launch

By: Andres Rincon

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.

Source: Bloomberg L.P. / TD Securities

This material is intended to provide commentary on the market for commodities discussed herein.

Not Advice: The information contained in this material is for informational purposes only and is not intended to provide professional, investment or any other type of advice or recommendation, or to create a fiduciary relationship. Neither TD Securities (USA) LLC (“TD Securities USA”) nor any of its affiliates (collectively, “TD”) makes any representation or warranty, express or implied, regarding the accuracy, reliability, completeness, appropriateness or sufficiency for any purpose of any information included in this material. Certain information may have been provided by third-party sources and, while believed to be reliable, has not been independently verified by TD, and its accuracy or completeness cannot be guaranteed. You should not make an investment decision in reliance on this material, which is intended to provide only brief comments on the topics addressed, and is based on information that is likely to change without notice.

Not Securities or Derivatives Research: This material has not been produced, reviewed or approved by TD’s securities or derivatives research departments. The views of the author may differ from others at TD, including TD securities or derivatives research analysts.

Not Independent: The views expressed in this material may not be independent of the interests of TD. TD may engage in conflicting activities, including principal trading before or after posting this material, or other services involving commodities discussed in this material, or related financial products. TD may have a financial interest in the commodities discussed in this material, including, without limitation, a financial product that references such commodities.

Not An Offer or Solicitation: Nothing contained in this material is, or should be construed as, an offer, a solicitation of an offer or an invitation to buy or sell any commodity, or any financial product that references such commodity, and it is not intended for distribution in any jurisdiction where such distribution would be contrary to law.

Risk of Loss. Transactions in commodities, and financial instruments that reference commodities, involve risk of loss, and are subject to the risks of fluctuating prices. You should weigh potential benefits against the risks. Past performance is no indicator of future performance and the Materials are not intended to forecast or predict future events.

Not a Valuation: This material is not an official valuation of any commodity mentioned herein. Any pricing information provided is indicative only and is not intended to demonstrate actual results that may be achieved by any transaction in any commodity, or any financial product that references such commodity.

headshot of Andres Rincon

Andres Rincon
Director and Head of ETF Sales & Strategy, TD Securities

headshot of Andres Rincon

Andres Rincon
Director and Head of ETF Sales & Strategy, TD Securities

headshot of Andres Rincon

Andres Rincon
Director and Head of ETF Sales & Strategy, TD Securities

Andres Rincon heads ETF sales and strategy at TD Securities. His ETF team advises both institutional and wealth investors on the ETF landscape and strategies, publishes a broad array of ETF publications, and works with TD's ETF market making team in facilitating ETF orders. Andres joined TD Securities in 2008, first managing credit risk for the dealer, and later as a member of the Equity Derivatives division. He later took on the task of expanding TD Securities' ETF sales and strategy platform. He is also a Chartered Market Technician (CMT).

Share This Article