Bitcoin ETFs Make Billions: Popular stocks that offer investors Bitcoin exposure continued its decline as the price of the leading cryptocurrency plunged following the highly anticipated launch of spot crypto exchange traded funds (ETF) in the United States.
Top stocks of public companies holding Bitcoin, such as MicroStrategy, Tesla, and Coinbase, have fallen significantly over the past month.
Such actions allow investors to have skin in the crypto game, without actually purchasing digital assets themselves. But since Bitcoin, the largest and oldest digital coin, has took a beating this month, crypto stocks too.
MicroStrategy (NASDAQ: MSTR), the largest public holder of BTC with 189,150 coins currently worth $7.5 billion, is down 25% in the past month, trading at $450.99 per action.
Meanwhile, shares of electric car maker Tesla (NASDAQ: TSLA) have fallen more than 19% and are priced at $207.83. Elon Musk’s tech company owns over $386 million in BTC.
And America’s largest crypto exchange, Coinbase (NASDAQ: COIN), which became public in 2021, has fallen further, with a 29% drop over the past month. COIN is trading today at $121.34 per share.
Many titles…especially mining stocks– generally do well or better than the crypto industry when there is interest in the digital asset space.
And with the price of Bitcoin falling so far in 2024, the biggest Bitcoin-related stocks aren’t doing well. Canadian Bitcoin miner Hut, which trades on the Toronto Stock Exchange as HUT, fell more than 64% during the month.
And American mining company Riot Platforms (NASDAQ: RIOT) is down more than 41%, with the stock valued at just over $10. Miners are two of the largest publicly traded holders of Bitcoin.
Bitcoin price has fallen so far this year, even with the launch of several Bitcoin ETFs. Analysts were divided on whether the launch of the long-awaited investment vehicles, which allow investors to buy stocks that track the price of cryptocurrency, would lead to a bull run.
But while it may be too early to tell whether or not an influx of capital will cause the price of BTC to rise, the asset is currently suffering. And it looks like crypto stocks will continue to be dragged down as a result.