• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Ark Invest Warns of Potential Losses for Bitcoin ETF Investors

user avatar

by Giorgi Kostiuk

a year ago

  1. Potential Losses for Investors
  2. Key Factor: Bitcoin Price
  3. Impact on Market Sentiment


    4. A study by Ark Invest has found that investors in U.S. spot Bitcoin ETFs could face losses. This is due to the average investment cost being higher than the current market price of Bitcoin.

    Potential Losses for Investors

    Ark Invest issued a report indicating that participants in U.S. spot Bitcoin ETFs could be facing losses. According to the company’s August analysis, the average cost basis for these ETFs exceeded the prevailing Bitcoin price, suggesting possible financial losses for typical investors.

    Key Factor: Bitcoin Price

    Ark Invest’s assessment, based on data since the launch of U.S. spot Bitcoin ETFs in January 2024, utilized a flow-weighted average price method to calculate the cost basis. This method considers the investment volumes and timing, providing a more accurate representation of participants’ average investment cost over time.

    Impact on Market Sentiment

    Industry analysts emphasize that the performance of spot Bitcoin ETFs is closely tied to Bitcoin’s price movements. Consequently, fluctuations in Bitcoin’s price significantly impact ETF investors’ returns. Ark Invest’s bearish outlook could affect investor sentiment, potentially influencing capital inflows and outflows in these ETFs.

    Ark Invest’s report summarizes that current market conditions might not be favorable for investors in spot Bitcoin ETFs. This raises questions about the profitability and sustainability of these investment vehicles under the prevailing market dynamics.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Ethereum Remains Rangebound as Traders Await Volatility

chest

Ethereum remains rangebound between $3,802 and $4,154 as traders await volatility.

user avatarMaya Lundqvist

Claver Advocates for Institutional Lending Against Crypto Holdings

chest

Claver advocates for borrowing against appreciated crypto instead of converting it to fiat, allowing investors to access liquidity while preserving growth potential.

user avatarLeo van der Veen

Japan's Digital Asset Regulatory Overhaul Coincides with Bitcoin Mining Project

chest

Japan's renewed interest in blockchain infrastructure coincides with a digital asset regulatory overhaul, which includes proposals to classify cryptocurrencies as financial products under the Financial Instruments and Exchange Act.

user avatarLi Weicheng

Stablecoin Reserves to Enhance Treasury Utilization

chest

Regulatory changes mandate stablecoin reserves backed with short-duration US Treasuries, potentially lowering borrowing costs.

user avatarAisha Farooq

Viral Sperm Racing Event Captivates Crypto Market

chest

A sperm racing event in Los Angeles has drawn significant attention in the crypto market, linking health gamification with onchain betting activities, despite facing criticism over market manipulation.

user avatarTenzin Dorje

New York Proposes Tiered Excise Tax on Crypto Mining Energy Use

chest

New York State Senator Liz Krueger has proposed a tiered excise tax on energy used by crypto mining operations, aiming to incentivize energy efficiency and sustainability.

user avatarBayarjavkhlan Ganbaatar

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.