Funds with exposure to bitcoin plummeted Monday as the stock market sold off sharply and investors fretted over problems at high-profile crypto platforms. Shares of the ProShares Bitcoin Strategy ETF
the VanEck Bitcoin Strategy ETF
and the Valkyrie Bitcoin Strategy ETF
closed around 20% lower Monday, according to FactSet data.
Bitcoin ETFs are being pummeled as stocks trade sharply lower amid growing concern that recession odds are climbing, with investors fearing the Federal Reserve may become more aggressive raising rates to tame surging inflation. Bitcoin was down 14% Monday afternoon at $23,450, sliding after Friday’s consumer-price index report showed U.S. inflation running hotter than expected in May. Sentiment also appeared to take a hit after crypto lending platform Celsius Network said Sunday that it would pause withdrawals, swaps, and transfers between accounts. The company cited “extreme market conditions” and said in a blog post that the move would “put Celsius in a better position to honor, over time, its withdrawal obligations.” On Monday morning, crypto exchange Binance put a pause on bitcoin withdrawals. See: Crypto lender Celsius had been dogged by red flags for months ahead of withdrawal freeze Sentiment for cryptos is terrible as the global crypto market cap has fallen below $1 trillion dollars, said Edward Moya, senior market analyst for the Americas at OANDA, in an emailed note Monday. “Bitcoin is attempting to form a base, but if price action fa …