As Bitcoin Drops, These Cryptocurrency Funds Follow
Bitcoin (CRYPTO:BTC) has been trending lower and over the weekend, Elon Musk made some comments that many investors took to be bearish. That has caused the downtrend momentum to accelerate.
Cryptocurrency funds are trending lower as well.
Unfortunately for the holders of these funds, they've dropped more than the cryptos that they invest in. These funds include the Grayscale Bitcoin Trust (OTC:GBTC), the Grayscale Ethereum Trust (OTC:ETHE), and the Amplify Transformational Data Sharing ETF (NYSE:BLOK).
The funds have dropped more than the cryptos they follow because they were all trading at premiums. The market value of the fund exceeded the value of the cryptocurrencies that it holds. This was a result of the high demand for equity exposure to cryptos.
GBTC invests in Bitcoin and has dropped by 35% in one month.
ETHE invests in Ethereum and is down 10% in a week
BLOK invests its assets in the equity of companies that are involved in the development of blockchains and cryptocurrencies.
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