As Billions Of Dollars Flowed Into Bitcoin ETFs, Crypto Stocks Like MicroStrategy, Coinbase Got Left Behind In The Dust
Portfolio Pulse from Mehab Qureshi
Following the introduction of spot crypto ETFs in the US, stocks like MicroStrategy Inc (MSTR) and Coinbase Inc (COIN) have seen a decline in their stock prices, with MSTR down 25% and COIN down 29% over the past month. Bitcoin mining companies Riot Platforms (RIOT) and Marathon Digital Holdings Inc. (MARA) also experienced significant drops of 41% and 38%, respectively. Despite the downturn in crypto stocks, the new Bitcoin ETFs have attracted significant inflows, with $5.2 billion since their inception, countering outflows from Grayscale's Bitcoin Trust. Bitcoin's price remains volatile, trading at $40,060, up 0.52% in the last 24 hours.
January 26, 2024 | 5:21 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Coinbase's shares have declined by 29% since its IPO, with the recent downturn attributed to Bitcoin's price drop and the competition from new Bitcoin ETFs.
Coinbase's performance is closely tied to the crypto market, and the introduction of Bitcoin ETFs offers investors an alternative means to gain exposure to Bitcoin, potentially impacting COIN's stock price negatively.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Marathon Digital Holdings Inc. experienced a 38% drop in its stock price, which can be attributed to the downward trend in Bitcoin's price and the introduction of Bitcoin ETFs.
Marathon Digital Holdings' stock is impacted by the performance of Bitcoin. The availability of Bitcoin ETFs may reduce investor interest in crypto mining stocks like MARA.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
MicroStrategy's stock has decreased by 25% over the past month, likely due to the falling price of Bitcoin and the introduction of spot Bitcoin ETFs.
MicroStrategy's stock price is highly correlated with Bitcoin prices due to its substantial holdings. The availability of spot Bitcoin ETFs provides a direct investment alternative, potentially reducing demand for stocks like MSTR.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Riot Platforms' stock has plummeted over 41% in the past month, likely affected by the decline in Bitcoin prices and the shift of investor interest to Bitcoin ETFs.
As a Bitcoin mining company, RIOT's stock is sensitive to changes in Bitcoin's price. The new ETFs may also divert investment away from mining stocks, contributing to the decline.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85