The Purpose Bitcoin ETF, managed by Purpose Investments, has seen its total assets under management surpass the $500 million mark this week as inflows from institutional investors appeared to be unaffected by the market’s dip.

According to data firm Glassnode, the Purpose Bitcoin ETF, the first bitcoin exchange-traded fund (ETF) in North America, reached $564 million in assets under management only five days after being launched, as its holdings were at 8,288 BTC and keep on growing.

The fund’s explosive growth seems to fall in line with a prediction made by Bloomberg analyst Eric Balchunas, who said the ETF will likely hit $1 billion in assets under management by the end of the week, comparing it to the biggest ETF in Canada which has $8 billion in assets under management.

Canada has been emerging as a hotbed for regulated bitcoin products, with two ETFs being launched this month. After the Purpose ETF was approved, Evolve Funds Group received approval from the Ontario Securities Commission (OSC) to launch its own bitcoin ETF, trading under the EBIT ticker.

Both ETFs have a management fee of 1% and allow investors to gain exposure to the flagship cryptocurrency without paying hefty premiums or dealing with private keys. In Canada, there are various other exchange-traded products giving investors exposure to BTC, including 3iQ’s the Bitcoin Fund (QBTC.U), which has over $1 billion under management.

As reported, during a recent interview billionaire investor Mike Novogratz revealed he believes the U.S. Securities and Exchange Commission (SEC) is set to approve the launch of a bitcoin ETF within 12 months. Per his words, an ETF would be a much better bitcoin investment vehicle for U.S. retail investors when compared to existing alternatives.

Featured image via Pixabay.