Bitcoin-Related Stocks Slide as Spot Bitcoin ETFs Launch
Shares in bitcoin-related companies like Coinbase, MicroStrategy, Riot Platforms, and Marathon Digital dropped as trading began for the newly approved spot bitcoin ETFs in the United States. These stocks had seen significant gains over the past year, with investors using them as a proxy for bitcoin before the ETF approval. However, now that the bitcoin ETF products have launched, profit-taking seems to be occurring. Some speculate that the proxy stocks are now draining into the new spot bitcoin funds.
Riot and Marathon Hit Hardest
Riot, a bitcoin mining company, experienced the biggest drop among these stocks, falling 15.8% to $13.09. Marathon was slightly better off, dropping 12.6% to $22.40. Fellow mining firms CleanSpark and Iris Energy also saw declines of 7% and 6%, respectively.
Coinbase and MicroStrategy Also Decline
Shares in crypto exchange Coinbase fell 6.7%, while MicroStrategy’s stock dropped 5.2%. Both companies have seen substantial gains in the past year leading up to the launch of the bitcoin ETFs.
New Spot Bitcoin ETFs Generate High Trading Volume
The first day of trading for U.S. spot bitcoin ETFs saw a total trading volume of over $4.5 billion across all 11 approved products. BlackRock’s spot bitcoin ETF had a trading volume of $1.05 billion, surpassing BITO’s first-day futures bitcoin ETF volume in 2021. Fidelity’s FBTC spot bitcoin ETF reached nearly $685 million in trading volume, while Grayscale’s GBTC product generated around $2.3 billion in trading volume.
Hot Take: Investor Funds Flowing into Spot Bitcoin ETFs
The significant trading volume on the first day of spot bitcoin ETFs indicates a considerable influx of investor funds into these products, suggesting growing interest in bitcoin exposure through ETFs.
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