Bitcoin-linked stocks plummet:
- Shares of Coinbase and MicroStrategy plunged following the launch of the first Bitcoin spot ETFs in the United States.
- Coinbase saw a 7% drop, while MicroStrategy faced a 5% decline in just a few hours.
- Riot Platforms and Marathon Digital stocks took the biggest hit.
Bitcoin-related companies’ stocks, including Coinbase, MicroStrategy, Riot Platforms, and Marathon Digital, have experienced a significant decrease in their market value coinciding with the launch of Bitcoin Spot ETF trading.
These stocks had soared over the past year, with Coinbase’s COIN surging over 400% in just a few months. Initially, traditional investors turned to these stocks as an indirect exposure to Bitcoin while awaiting the launch of the ETFs.
However, with the ETFs being introduced, these investors are now taking profits. Many are reallocating their funds directly into Bitcoin ETFs. Additionally, the first day of Bitcoin spot ETF trading in the US witnessed a total transaction volume of over $4.5 billion.
Marathon and Riot Platforms hit hardest by the drop
Marathon Digital Holdings and Riot Platforms have been particularly affected by the recent market decline.
Marathon, for instance, experienced a roughly 13% drop, closing at around $22.40 yesterday. As for mining company Riot, its stock plummeted to $13.10, marking a decline of approximately 13.10%.
Coinbase and MicroStrategy stocks also saw a decrease of 6.7% and 5.2%, respectively.
Despite these unexpected drops, the stocks of these companies have generally seen significant gains since the beginning of 2023.
