RIOT - As Billions Of Dollars Flowed Into Bitcoin ETFs Crypto Stocks Like MicroStrategy Coinbase Got Left Behind In The Dust | Benzinga
Stocks that offer investors exposure to Bitcoin (CRYPTO: BTC) have experienced a downturn following the apex cryptocurrency’s price drop to levels below $41,000, despite initial enthusiasm surrounding the introduction of spot crypto exchange-traded funds (ETFs) in the United States.
Companies holding significant Bitcoin assets, including MicroStrategy Inc (NASDAQ:MSTR) and Coinbase Inc (NASDAQ:COIN), have seen their stock prices fall over the last month.
These equities provide a way for investors to gain exposure to cryptocurrencies without direct investment in such digital assets. However, with Bitcoin’s value under pressure, the impact has spilled over to related stocks.
Crypto Stocks Take A Hit
Between December 24 and January 24, 2024, MicroStrategy observed a 25% decrease in its stock value, with shares falling to $450.99. On January 10, the Securities and Exchange Commission (SEC) greenlit the introduction of spot Bitcoin ETFs, which led to the debut of nine fresh funds in the marketplace. The company, known for its substantial Bitcoin holdings of 189,150 BTC, presently has a cryptocurrency portfolio valued at $7.5 billion.
During the same time frame, Coinbase, the U.S. cryptocurrency exchange possessing 9,480 BTC in reserves, saw its ...