Bitcoin ETFs fall sharply in stock market sell-off driven by stronger-than-expected inflation

Bitcoin-focused exchange-traded funds slid sharply around midday Tuesday in a broad stock market crash triggered by a warmer-than-expected inflation reading for August. The ProShares Bitcoin Strategy ETF was down more than 7% around midday, while the VanEck Bitcoin Strategy ETF and the Valkyrie Bitcoin Strategy ETF also slid more than 7%, according to FactSet data, in the last verification. While some bitcoin proponents viewed the cryptocurrency as a hedge against inflation, its prices crashed as the cost of living skyrocketed in 2022. Bitcoin fell about 7% to around 20 $747 by midday, with losses so far this year of about 55%, FactSet data shows, when last checked. Meanwhile, the ICE US Dollar Index, an indicator of dollar strength against a basket of rivals, jumped about 1.1%.

-Christine Idzelis

(END) Dow Jones Newswire

09-13-22 1230ET

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