The Canadian Bitcoin ETFs are hit with a strong market disruption due to the latest crypto market crash as we can see more in our latest Bitcoin news today.
Horizon’s Bitcoin ETF in Canada had a hard time filling orders from investors because of the market sell-off as the price of the coin crashed once again. Some of the most popular Canadian Bitcoin ETFs struggled because of this. It’s been a hell of a week for BTC with the largest cryptocurrency market cap being down by 27.5% this week with Elon Musk and China regulatory matters and panic selling contributing to the market crash. BTC traded at $35,871 at the time of writing.
Crypto exchange-traded funds in Canada are on a high alert according to reports and the financial times reported that the BTC ETFs issued market disruption warnings to protect their investors. The newspaper added that the two funds by Horizons ETFs Canada said that they will be unable to fulfill buy and sell orders if the market conditions don’t improve. This is mainly because the Horizon ETFs invest in BTC futures on the Chicago Mercantile Exchange which stopped trading because of the sell-off. The futures contract is an agreement that obligates the traders to purchase or sell an asset at a specific time, price or quantity. If the prices remain at low levels, investors are unlikely to bet on them going up and to invest. With bitcoin’s price crashing this week, investors are staying away.
An ETF is a common investment product that allows people to buy shares that represent a certain asset like gold for example or Bitcoin in this case. Crypto ETFs are popular as they give those who know almost nothing about BTC, a chance to invest without having to hold the assets themselves. No such product is available to the US investors because the SEC rejected every single BTC ETF application to date. And while market disruption sounds alarming, Horizon is the only crypto ETF issuer in Canada that reported any trouble. Another ETFs in the country is fine apparently. CI Galaxy for example said that its ETF didn’t have any issues because its product doesn’t use derivatives but invests in crypto directly.
The CEO of 3iQ’s Fred Pye also said that investors in the 3-year period saw meaningful periods of correction and that the pullback from the highs is normal.