Crypto and blockchain ETFs plummet as Bitcoin drops 20%

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Crypto and blockchain exchange traded funds crumbled on Monday morning as Bitcoin (BTC-USD) prices plunged twenty%falling to as low as $22.8K and touching its lowest levels since December of 2020.

Bitcoin ETFs and trusts like the ProShares Bitcoin Strategy ETF (NYSEARCH:BITO), Valkyrie Bitcoin Strategy ETF (BTF), VanEck Bitcoin Strategy ETF (XBTF), and the Grayscale Bitcoin Trust (OTC:GBTC) all sit deep into the red.

All four funds track the price of Bitcoin. BITO is lower by twenty-one%BTF has declined 21.4%whereas XBTF and GBTC have cratered 21.1% and 21.2%respectively.

Alongside Bitcoin funds that aim to mirror the price action of BTC-USD, blockchain ETFs have failed as well. These funds offer indirect exposure to the crypto market, with many aiming to deliver exposure to crypto miners of digital assets, digital asset exchanges, digital payments and services providers, as well as crypto storage stocks and other blockchain related businesses.

Four ETFs that fall inside this realm are the Amplify Transformational Data Sharing ETF (NYSEARCH:BLOK), Global X Blockchain ETF (BKCH), Bitwise Crypto Industry Innovators ETF (BITQ) and VanEck Digital Transformation ETF (DAPP).

Early into the session BLOK is -9.6%BKCH is -15.5%BITQ -16.3%and DAPP is lower by 16.5%.

The sell-off in BTC-USD and other crypto assets has now taken the total cryptocurrency’s market capitalization below $1T for the first time since January 2021.

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