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ETFs in Spotlight as Price of Bitcoin Sinks Below $96,000
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The cryptocurrency market suffered a sharp selloff on Nov. 14, with the price of Bitcoin plummeting below $96,000 for the first time in six months. This reflected a steep drop of more than 20% from its recent high north of $126,000, achieved in October.
Other major tokens, like Ether, the second-largest cryptocurrency, slid more than 10%, while Solana’s SOL and Binance’s BNB all recorded losses ranging from 6% to 10%, indicating a broad market retreat. The decline spilled over into crypto-linked equities, with firms like Coinbase and Strategy seeing share prices fall more than 1% and 3%, respectively.
This rapid depreciation and the subsequent volatility should serve as a critical trigger for investors to closely re-examine their positions in Bitcoin Exchange-Traded Funds (ETFs) and other crypto-linked investments.
Why Has the Price of Bitcoin Been Falling Lately?
The primary catalyst for the crypto selloff appears to be shifting sentiment around macroeconomic risk and monetary policy. According to Bloomberg, traders are lowering the odds of an interest rate cut from the Federal Reserve next month due to delayed key economic data. The resulting market uncertainty is causing investors to pressure riskier assets like cryptocurrencies.
Adding to the bearish momentum, liquidity has significantly dropped. Bitcoin-investing ETFs reported massive new outflows of about $870 million last Thursday, marking the second-largest withdrawal since their introduction in January 2024.
Furthermore, analysts at 10x Research have confirmed that the crypto market has "entered a confirmed bear regime," citing weakening ETF flows, continued selling by long-term holders, and muted retail participation (as cited in a Bloomberg press release).
These factors, combined with the fading "exuberance over the pro-crypto stance" of the current U.S. administration that fueled earlier gains, have seen Bitcoin erase its more than 30% year-to-date gain.
ETFs in Spotlight
The substantial ETF outflows and the confirmation of a bear regime signal that institutional and long-term support is waning. This is an opportune moment for investors to review their exposure, especially through Bitcoin ETFs, which were once hailed as a major source of stability and liquidity.
Therefore, the current environment calls for a cautious assessment now to determine if the risks associated with these investment vehicles still align with their personal risk tolerance.
This fund, with net assets worth $75.44 billion, has been the most traded bitcoin exchange-traded product since launch. It trades in an average daily volume of 62.55 million shares.
IBIT has risen 0.8% year to date. The fund charges 25 basis points (bps) as fees.
This fund, with net assets worth $22.50 billion, provides exposure to bitcoin in U.S. dollars. It trades in an average daily volume of 5 million shares.
FBTC has gained 0.7% year to date. The fund charges 25 bps as fees.
This fund, with assets under management (AUM) worth $16.01 billion, has a long operating history as the first publicly-traded Bitcoin fund in the United States. It trades in an average daily volume of 5.54 million shares.
GBTC has lost 0.3% year to date. The fund charges 150 bps as fees.
This fund, with a net asset value of $93.99, reflects the performance of the spot price of bitcoin. It trades in an average daily volume of 187,517 shares.
BTCO has gained 0.7% year to date. The fund charges 25 bps as fees.
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ETFs in Spotlight as Price of Bitcoin Sinks Below $96,000
The cryptocurrency market suffered a sharp selloff on Nov. 14, with the price of Bitcoin plummeting below $96,000 for the first time in six months. This reflected a steep drop of more than 20% from its recent high north of $126,000, achieved in October.
Other major tokens, like Ether, the second-largest cryptocurrency, slid more than 10%, while Solana’s SOL and Binance’s BNB all recorded losses ranging from 6% to 10%, indicating a broad market retreat. The decline spilled over into crypto-linked equities, with firms like Coinbase and Strategy seeing share prices fall more than 1% and 3%, respectively.
This rapid depreciation and the subsequent volatility should serve as a critical trigger for investors to closely re-examine their positions in Bitcoin Exchange-Traded Funds (ETFs) and other crypto-linked investments.
Why Has the Price of Bitcoin Been Falling Lately?
The primary catalyst for the crypto selloff appears to be shifting sentiment around macroeconomic risk and monetary policy. According to Bloomberg, traders are lowering the odds of an interest rate cut from the Federal Reserve next month due to delayed key economic data. The resulting market uncertainty is causing investors to pressure riskier assets like cryptocurrencies.
Adding to the bearish momentum, liquidity has significantly dropped. Bitcoin-investing ETFs reported massive new outflows of about $870 million last Thursday, marking the second-largest withdrawal since their introduction in January 2024.
Furthermore, analysts at 10x Research have confirmed that the crypto market has "entered a confirmed bear regime," citing weakening ETF flows, continued selling by long-term holders, and muted retail participation (as cited in a Bloomberg press release).
These factors, combined with the fading "exuberance over the pro-crypto stance" of the current U.S. administration that fueled earlier gains, have seen Bitcoin erase its more than 30% year-to-date gain.
ETFs in Spotlight
The substantial ETF outflows and the confirmation of a bear regime signal that institutional and long-term support is waning. This is an opportune moment for investors to review their exposure, especially through Bitcoin ETFs, which were once hailed as a major source of stability and liquidity.
Therefore, the current environment calls for a cautious assessment now to determine if the risks associated with these investment vehicles still align with their personal risk tolerance.
iShares Bitcoin Trust (IBIT - Free Report)
This fund, with net assets worth $75.44 billion, has been the most traded bitcoin exchange-traded product since launch. It trades in an average daily volume of 62.55 million shares.
IBIT has risen 0.8% year to date. The fund charges 25 basis points (bps) as fees.
Fidelity Wise Origin Bitcoin Fund (FBTC - Free Report)
This fund, with net assets worth $22.50 billion, provides exposure to bitcoin in U.S. dollars. It trades in an average daily volume of 5 million shares.
FBTC has gained 0.7% year to date. The fund charges 25 bps as fees.
Grayscale Bitcoin Trust ETF (GBTC - Free Report)
This fund, with assets under management (AUM) worth $16.01 billion, has a long operating history as the first publicly-traded Bitcoin fund in the United States. It trades in an average daily volume of 5.54 million shares.
GBTC has lost 0.3% year to date. The fund charges 150 bps as fees.
Invesco Galaxy Bitcoin ETF (BTCO - Free Report)
This fund, with a net asset value of $93.99, reflects the performance of the spot price of bitcoin. It trades in an average daily volume of 187,517 shares.
BTCO has gained 0.7% year to date. The fund charges 25 bps as fees.