bitcoin-(BTC-USD) and blockchain-focused exchange-traded funds looked set for a weaker start to trading on Monday as their underlying digital token fell in early trading.
As Wall Street prepares for the open, the price of Bitcoin has decreased nearly 3% at nearly $16,100. Earlier today, the crypto slipped below $16,000.
Bitcoin’s fall has put pressure on ETFs tied to the cryptocurrency space. Here are some individual names impacted:
Bitcoin strategy ETF: Bitcoin strategy funds such as the ProShares Bitcoin strategy ETF (NYSEARC:BITO), Valkyrie Bitcoin Strategy ETF (NASDAQ:BTF) and the VanEck Bitcoin Strategy ETF (XBTF) trended lower on Monday as all three funds use Bitcoin futures to price the underlying ETF. Therefore, any movement of the cryptocurrency will be reflected in the price movements of the underlying fund.
At first, BITO, BTF and XBTF are -2.9%, -2.6%and -2.5%.
Blockchain ETFs: Blockchain funds do not invest directly in Bitcoin or other crypto assets, but rather are indirectly involved in the space. They invest in stocks related to crypto platforms, crypto mining, and other related companies that are at the forefront of the digital economy.
Five funds in particular to watch closely are the ETF Amplify Transformational Data Sharing (NYSEARC:BLOK), Bitwise Crypto Industry Innovators ETF (BITQ), Global X Blockchain ETF (NASDAQ:BKCH), Viridi Cleaner Energy Crypto-Mining & Semiconductor (RIGZ) and the VanEck Digital Transformation ETF (DAPP).
For November, BTC-USD plunged by 20.9%. In the longer term, the cryptocurrency has slipped 65.7%.
In crypto ETF news, Ark Invest and Cathie Wood’s 21Shares have filed a spot ETF. suspended until 2023.