The popularity of new Bitcoin exchange traded funds helped attract $5.2 billion to Canada’s ETF sector in February, the second-highest amount of inflows on record.
Toronto-based Purpose Investments Inc. launched the very first Bitcoin-backed ETF in North America last month. Rival Evolve Funds followed with a similar Bitcoin fund that’s 25% cheaper.
The two Bitcoin ETFs, which are listed on the Toronto Stock Exchange, pulled in a total of $701 million of investor funds in February, according to National Bank Financial. A third Bitcoin ETF managed by CI Global Asset Management launched on the TSX March 9.
The Bitcoin ETFs received about two-thirds of the $6.6 billion investors put into Canadian ETFs during February. The only month to surpass that amount of inflows was February 2020, when inflows topped $8 billion ahead of RRSP deadlines.
The biggest-selling specialty ETF this past February with $950 million of inflows was the TD Global Technology Leaders Index ETF, which has exposure to technology firms such as Apple and Amazon. The Canadian-dollar version of the Purpose Bitcoin ETF was second with $510 million of inflows.
