NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Bitcoin Exchange Gemini Makes A Splash On Nasdaq Debut, Jumping Nearly 50%
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Bitcoin Exchange Gemini Makes A Splash On Nasdaq Debut, Jumping Nearly 50%

Bitcoin Investment ETFs And Trusts Have Slowed Since May

Anifowoshe Ibrahim
Anifowoshe Ibrahim
1 year ago
3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Many investors are uneasy since Bitcoin value has fallen by around 70% since its peak in November 2021. In the meantime, market sentiment is at an all-time low due to analysts’ expectations of a major recession. This is especially clear from the decline in the equity markets as measured by the S&P 500 and Nasdaq 100 indices, which has a big impact on how people invest in BTC on regulated markets.

Bitcoin Investment Vehicles Have Taken A Beating

When taking a look at the Grayscale Bitcoin Trust, the share price has significantly decreased from its peak of roughly $56 to $11.94. At the same time, the share values of 3iQ CoinShares Bitcoin ETF and Purpose Bitcoin Canadian ETF both fell sharply.

bitcoin

 

The Grayscale Bitcoin Trust (GBTC) has fallen deeply to $11.94 since its peak. Source: TradingView

Despite the shares’ significant discount, GBTC’s daily trading volume has drastically decreased to 3.075M. It suggests that institutional investors might be skeptical about Bitcoin-related financial products on the regulated market or they might just believe that the bear market is not yet over.

The daily trading volume of GBTC has sharply dropped to 3.075M despite the generous discount of the shares. Source: YCharts

Additionally, given the current market conditions, certain trusts and ETFs are gradually selling off their holdings. For instance, since reaching its high in February 2022, the total amount of BTC held by the Grayscale Bitcoin Trust has decreased.Moreover, since the market peaked in May 2021, the total number of Bitcoins held by various trusts and ETFs has sharply decreased.

The Sharpe ratio indicates that GBTC is a bad asset with a very low risk-adjusted performance in terms of return on investment. In fact, the Sharpe ratio has recently dropped to 0.453 after declining over time. It implies that while GBTC’s volatility is fairly high, the projected return on investment is rather modest.

Related Reading: Bitcoin Diamond Hands: Long-Term Holder Supply Surges Up To Near ATH

Loss After Loss

The current pioneer crypto investment vehicles in regulated markets, including trusts and ETFs, have to some extent displayed the pessimistic signal. Despite the significant discount at which GBTC has been sold, the daily trading volume is steadily declining, and several trusts and ETFs, such as Grayscale Bitcoin Trust, have been urged to sell their BTC holdings.

The total number of BTC held by trusts & ETFs has plummeted since May 2021. Source: CryptoQuant

The current Bitcoin investment tools in regulated markets such as trusts and ETFs have shown the bearish signal to a certain extent. Although GBTC has been traded at a substantial loss, the daily trading volume keeps decreasing and some trusts and ETFs including Grayscale Bitcoin Trust have been encouraged to divest their Bitcoin holdings.

Sharpe ratio tells us that GBTC is a poor asset with a very low risk-adjusted performance. Source: YCharts

Because the shares of GBTC sold or bought by institutional investors are reported quarterly, many recent trades may have not been listed yet. However, these above figures could give us some clues of what may be actually happening with Bitcoin behind the scenes.

Retailers can only be aware that a local bottom has been reached after it has already occurred, like in the case of institutional investors who purchased GBTC in late June just prior to the July rise.

Most notably, the Sharpe ratio shows that GBTC’s return on investment is rather low and that this asset appears to be quite risky. Therefore, at this time, investors would be ready to begin hedging against the rising negative downside risk of bitcoin.

Related Reading: Bearish Indicator: Bitcoin Short Exposure Surge To New All-Time High
Featured image from Unsplash, charts from TradingView.com, Ycharts, and Cryptoquant
Tweet123Share196ShareSend
Anifowoshe Ibrahim
Anifowoshe Ibrahim

Anifowoshe Ibrahim

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Bitcoin

Lower Bitcoin Dominance Reinforces Altcoin Strength — Here’s How

Bitcoin has been the undisputed leader of the crypto market, but the balance of power is starting to shift. Recent...

Godspower Owie 6 hours ago
Dogecoin

Dogecoin Price Just Broke A Regional High For The First Time This Year, Why A 300% Rally To $1 Is Possible

Crypto analyst XForce has revealed that the Dogecoin price just broke a regional high, following its reclaim of the $0.3...

Scott Matherson 7 hours ago
DeFi is de belangrijkste trend in crypto in 2025 - wordt Pendle het epicentrum?

DeFi is de belangrijkste trend in crypto in 2025 – wordt Pendle het epicentrum?

Ethereum staat weer bovenaan de agenda. De markt schuift richting DeFi en daar lijken de kansen voor traders groter dan...

Lars Diederiksen 8 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

ethereum eth

Ethereum Faces September Profit-Taking Risks Despite $638M ETF Boost

James Halver 2 hours ago
dogecoin-previsions-maxi-doge-heritier-crypto

Dogecoin Price Could See Another Double-Digit Surge This Week As These Developments Take Place

Sandra White 3 hours ago
etf-memecoins-etats-unis-reglementation-crypto

Les ETF memecoins aux États-Unis : quel impact pour la réglementation crypto ?

guillaumev 4 hours ago

Premium Sponsors

Press Releases

  • 5 kryptoměn, které je třeba sledovat v listopadu kvůli potenciálnímu růstu o 5 000 %

    5 kryptoměn, které je třeba sledovat v listopadu kvůli...

    2 hours ago
  • Kterou kryptoměnu koupit nyní | Nejlepší kryptoměny k investování v roce 2025

    Kterou kryptoměnu koupit nyní – Nejlepší...

    2 hours ago
  • 5 kriptovaluta koje treba pratiti u studenom zbog potencijalnog rasta od 5.000%

    5 kriptovaluta koje treba pratiti u studenom zbog...

    3 hours ago
  • Nejlepší altcoiny k nákupu před rozhodnutím FEDu 17. září o úrokových sazbách

    Nejlepší altcoiny k nákupu před rozhodnutím FEDu 17...

    3 hours ago
  • Najlepšie kryptomeny na investíciu v roku 2025

    Ktorú kryptomenu kúpiť teraz | Najlepšie kryptomeny na...

    3 hours ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.