Canadians buy the dip as Purpose Bitcoin ETF holdings reach new highs

Bitcoin

Despite May’s price correction, which took Bitcoin (BTC) as low as $23,800, institutional investors seem unwilling to lose confidence in the cryptocurrency.

The Purpose Bitcoin ETF, launched in February 2021, has been seeing a consistent inflow over the last five trading days. The fund’s holdings have increased to 43,701.7 BTC as of Tuesday, according to Glassnode data reported by Jan Wustenfeld. That’s the highest level on record.

Notably, the Canadian spot Bitcoin ETF purchased 2,006 BTC on Thursday and 2,780 BTC on Tuesday.

The inflows seem to align with a broader short-term tendency of institutional buyers investing in crypto again. Data from Coinshares reveals that digital asset investment products saw $87 million in cumulative inflows last week, with Bitcoin products accounting for $69 million of that total.

This news comes as a relief from the digital asset outflow caused by last month’s market collapse, which saw $141 million in total outflows from institutional funds in the week of May 24. That was the highest outflow since July 2021.

Related: Crypto funds under management drop to a low not seen since July 2021

Still, according to the Coinshares report, the total assets under management (AUM) metric currently remains at its lowest point since mid-2021 as some institutional buyers seem to be waiting for lower prices to inflow crypto into their funds again.

Looking at the market’s future, analysts still seem bearish in the short term, with predictions for Bitcoin going as low as 14,000 and calling the recent price surge a bull trap. Meanwhile, long term predictions remain positive, with holders still accumulating Bitcoin and young generations remaining bullish.

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