2024-01-12 23:10:11
© Reuters Cryptocurrencies: bitcoin plummets, with realization after euphoria with ETFs in sight
The market was falling sharply in the late afternoon of this Friday, the 12th, offsetting the recent gains generated by investor enthusiasm with the approval by the Securities and Exchange Commission (SEC, the American CVM) of exchange-traded funds (ETFs) in bitcoin available in the USA. Even after approval, some traditional companies in the financial market were still averse to offering the products.
“U.S. bitcoin ETFs enjoyed $4.6 billion in volumes on their first day of trading after the SEC gave the green light to 11 U.S. ETFs,” wrote Victoria Scholar, chief investment officer at Interactive Investor. Even so, the analyst noted that the reaction in cryptocurrency prices was limited.
Analysts at JPMorgan (NYSE:) cited that the ETFs that performed best were those with the lowest fees, which indicates that investors are choosing their preferred products based on the prices offered. In the days leading up to the launch, asset managers disclosed proposed rates and exemption offers through regulatory filings. Several asset managers ended up significantly reducing their fees after seeing competitors’ prices.
Among the analysts with reservations about the products was one from Goldman Sachs (NYSE:). Goldman Sachs Private Wealth Management investment strategy leader Sharmin Mossavar-Rahmani said bitcoin is speculation rather than a legitimate part of an investment portfolio.
UBS would be offering spot bitcoin ETFs to high-net-worth clients, according to people familiar with the matter. The Wall Street Journal. But individual investors complained on social media about the difficulty in accessing the bank’s platform. Vanguard said it would not offer ETF funds. Some companies are still evaluating whether ETFs are suitable for their clients’ profile.
Around 5:30 pm (Brasília time), bitcoin lost 6.66%, to US$43,511 (R$210,990), according to Kraken. The day before, bitcoin soared to US$49,000 on Thursday, the highest level since December 2021. Bitcoin, in turn, fell 1.35%, to US$2,594.37 (R$12,373.87 ).
*With information from Dow Jones Newswires
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