As the first significant test of the recently launched cryptocurrency exchange-traded funds took place on Monday, bitcoin and ether are starting to recover from their lowest point in six months.
With bitcoin falling below $50,000 and ether experiencing its biggest single-day decline in three years, the market capitalisation of all digital currencies has been reduced by about $370 billion as of early Monday.
Due to a global stock market meltdown, a large portion of the sell-off was connected to this event.
The recently introduced spot crypto ETFs have made a lot more investors vulnerable, which is what makes this crypto sell-off different from previous ones.
January saw the launch of Bitcoin ETF trading, while last month saw the launch of Ether funds. This is the first time that many investors have been exposed to cryptocurrency and its inherent volatility.
ETF holders stayed in the game, on the whole, Â A net outflow of approximately $168 million was seen in all spot bitcoin ETFs. Interestingly, no redemptions were made from the well-known BlackRock IBIT fund.
The withdrawals from the funds on Monday represent a small portion of their over $50 billion market value. Over 48 million dollars were added to all of the spot ether ETFs combined.
Source (CNBC)
