crypto strategy

Cryptocurrency ETFs surge as Bitcoin recaptures $21,000

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Exchange-traded funds linked to the cryptocurrency space posted gains in early action on Friday, supported by a surge in Bitcoin (BTC-USD), which rallied above the 21 level $000.

The rally included three of the biggest players in the industry: ProShares Bitcoin Strategy ETF (NYSEARCA:BITO), Valkyrie Bitcoin Strategy ETF (NASDAQ: BTF) and VanEck Bitcoin Strategy ETF (BAT:XBTF).

At first, BITO was +9.3%BTF won 9.7%and XBTF advanced by 9.8%. The gains came as Bitcoin surged 9.5% Friday.

BITO, BTF, and XBTF move in sync with Bitcoin, as all three funds use Bitcoin futures to price the underlying fund. Therefore, any movement of the crypto asset will reflect the price movements of the ETF.

At the other end of the field is the ProShares Short Bitcoin Strategy ETF (BITI), which is lower by 9.5%. The fund represents a Bitcoin-based short investment vehicle, which means it is designed to move in the opposite direction to Bitcoin.

In Friday’s late morning action, Bitcoin traded near the $21,100 mark, its highest level since August 26.

Year-to-Date Price Action: BTC-USD -55.5%BITO -55.1%BTF -54.7%XBTF -54.5%and BITI -6.2%.

Apart from Bitcoin-based ETFs, other blockchain-related ETFs are also higher because they have indirect exposure to Bitcoin. Four funds in particular are the Amplify Transformational Data Sharing (BLOK) ETF +3.6%Bitwise Crypto Industry Innovators (BITQ) ETF +5.3%Global X Blockchain ETF (BKCH) +6%and the VanEck Digital Transformation ETF (DAPP) +5.7%.

Earlier, Sam Bankman-Fried, founder and CEO of cryptocurrency exchange FTX (FTT-USD), said on Friday that the worst of the declines in the cryptocurrency space was likely over.

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