Bitcoin plunges 20% following launch of US Bitcoin ETFs

Bitcoin, the world’s leading digital currency, has seen a sharp decline of nearly 20% since January 11. This follows the launch of the inaugural Exchange-Traded Funds (ETFs) that invest directly in Bitcoin. The downturn has been attributed to increased caution among investors regarding the potential effects of these new financial products.

On the day of the ETFs’ launch, Bitcoin soared to a high of US$49,021. However, by 8.33am today in Singapore, the value of Bitcoin had plummeted to US$39,718. This marks a 19% drop from the previously noted intraday peak.

Some nine American spot Bitcoin funds started trading on January 11. This includes the Grayscale Bitcoin Trust (GBTC), valued at US$22 billion, which transitioned from a closed-ended structure into an ETF. A considerable net of US$1.2 billion had flowed into these funds within the first six days of operation, according to…