Bitcoin Falls as Second Bitcoin ETF Goes Live in the US
The price of bitcoin (BTC) fell Friday morning US time just as the second bitcoin futures-backed ETF, the Valkyrie Bitcoin Strategy ETF with ticker BTF, went live on the Nasdaq stock exchange.
Since going live at 09:30 ET (13:30 UTC), BTF was down by 3.15% from a price per share of USD 25.34 for the first recorded trade, to USD 24.54 at press time (14:58 UTC).
5-minute chart of the first 2 hours of trading. Source: TradingView
The new ETF closely tracked the spot price of bitcoin as seen on Coinbase in the first hour of trading. Worth noting, however, was that the drop in the spot price of bitcoin happened almost immediately upon the ETF going live on Wall Street.
Green vertical line indicates when ETF went live. Orange line is ETF, blue line is BTC/USD on Coinbase. Source: TradingView
Meanwhile, the fall in the price of bitcoin also followed comments from US Federal Reserve Chair Jerome Powell Friday morning US time, where he said that inflation “is well above target,” and that the central bank is “on track to begin our taper.” However, Powell also noted that “it would be premature to raise rates” at the current time.
The comments by Powell came in a speech at a conference hosted by the Bank for International Settlements (BIS).
At 15:21 UTC, bitcoin was down 2.8% over the past 24 hours to trade at a price of USD 61,720, per CoinGecko. The cryptocurrency remained up by more than 7% over the past 7 days.