- The Purpose Bitcoin ETF had to sell a whopping 500 million dollars worth of Bitcoin at Friday’s prices.
- Bitcoin dropped even below 20,000 USD. This has instilled a huge fear in the minds of traders.
- Purpose ETF provides its clients with a way to invest in the most promising cryptocurrency without even dealing in crypto.
What Happened To Purpose Bitcoin ETF?
Purpose Bitcoin ETF, the largest ETF in the world witnessed an outflow of 24,510 bitcoins, losing half of its assets last Friday.
According to sources, this was the most severe redemption in the history of the Purpose Bitcoin ETF since its inception.
This statement is in reference to the fact that the ETF had to sell a whopping 500 million dollars worth of Bitcoin at Friday’s prices.
This is in addition to the pressure developed by the shakiness in the cryptocurrency market to sell bitcoin.
“The enormous outflows are likely caused by a forced seller in a huge liquidation,” an analyst Vetle Lunde wrote. “The forced selling of the 24,000 BTC could have triggered BTC’s move down towards $17,600 this weekend.”
Bitcoin dropped even below 20,000 USD. This has instilled a huge fear in the minds of traders. Only time can tell us how much and fast the currency is going to recover.
What Are ETFs?
Bitcoin has been globally regarded as the most famous cryptocurrency of all time. Part of the reason is its first-mover advantage in the crypto world.
But it is very difficult for an everyday person to track the value of Bitcoin and study the market every day to invest in the currency.
To solve this issue were made, the bitcoin ETFs or the Exchange-traded funds.
These ETFs track the value of bitcoin through algorithms and various market researchers and expert analysts.
Therefore, ETFs provide their clients a way to invest in the most promising cryptocurrency without even dealing in crypto.
They are usually traded, bought, sold, and so on, on a regular trading platform instead of cryptocurrency trading platforms.
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