BITQ - Blockchain and crypto ETFs stumble amid Binance worries

2023-05-08 10:33:22 ET

Bitcoin ( BTC-USD ) and Ethereum ( ETH-USD ) both dropped more than 5% at the start of Monday's trading, putting downward pressure on crypto- and blockchain-focused exchange traded funds.

Early in the session, Bitcoin fell 5.8% to the $27,800 level and Ethereum dropped 6.9% to a mark near $1,850. As a result, funds that offer exposure to blockchain technologies, digital mining companies and digital asset exchanges have dipped into the red.

Amplify Transformational Data Sharing ETF ( NYSEARCA: BLOK ), Bitwise Crypto Industry Innovators ETF ( BITQ ), Global X Blockchain ETF ( BKCH ) and the VanEck Digital Transformation ETF ( DAPP ) have all participated in the retreat.

Intraday price action: BLOK -2.9% , BITQ -4.9% , BKCH -5.6% , and DAPP -6.6% .

At the same time, Bitcoin strategy tracking ETFs like the ProShares Bitcoin Strategy ETF ( NYSEARCA: BITO ), Valkyrie Bitcoin Strategy ETF ( BTF ) and the VanEck Bitcoin Strategy ETF ( XBTF ) have all tumbled as well.

Intraday price action: BITO -6.6% , BTF -6.6% , and XBTF -5.9% .

The crypto decline on Monday stemmed from the fact that crypto giant Binance halted Bitcoin withdrawals for an extended period of time due to large volumes and increasing processing fees.

More on the Crypto Market:

Crypto giant Binance resumes bitcoin outflows after second halt

Bitcoin marginally higher this week, but still below $30K

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