Canadian Bitcoin ETFs Hammered by the Crypto Bear Market

Even though the market continues to expect positive news with regards to Bitcoin ETFs from the USA, its neighbor Canada has already launched several of such investing instruments in 2021, creating new ways for people to take advantage of the rising crypto potential.

As compared to pre-pandemic levels, Bitcoin is still in the positive, yet the +50% drawdown seen since April, when a temporary top had formed, has not been favorable for the newly-launched Bitcoin ETFs in Canada, which are not trading heavily in red territory.

Canada launched Bitcoin ETF in February 2021

The Toronto Stock Exchange announced in February this year the world’s first Bitcoin Exchange Traded Fund (ETF) would be launched, a direct custody Bitcoin ETF designed to provide exposure to the most important cryptocurrency in the world by investing directly in physically settled BTC.

In contrast with traditional crypto exchange platforms, investors can get involved in Bitcoin via an instrument listed on the stock market, compliant with regulation and some of the highest standards.

Purpose Bitcoin ETF, or BTCC, has been followed by several other Bitcoin ETF listings, and now investors have 4 choices when wanting to take advantage of the BTC price using an ETF. However, the bear market now still in play has been a negative factor for investors looking to gain long exposure.

BTCC trades near all-time lows

Based on the last closing price on the TSX, BTCC is trading at 6.94, down more than 40% from the all-time high reached on April 14^th. That coincided with the all-time high in Bitcoin and since then, the ETF has been trading south, dropping impulsively as investors dumped their holdings.

Increased regulatory scrutiny around crypto as well as poor technical conditions led to a sharp reversion to the mean, which continues to act negatively on the near-term price action prospects.

Bitcoin trading – an alternative when prices are dropping

Although the emergence of Bitcoin ETFs is a positive sign for the industry, the lack of gains in the market is not proper for investors. As a result, using an online crypto trading platform like Dripcoin represents a more viable option, especially for retail traders wanting to get involved with little funding.

Using a Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term provides the opportunity to sell short and not just buy long, creating an environment where even bear markets equal potential trading opportunities. Dripcoin covers a variety of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, including Bitcoin, facilitating margin trading and access to tight trading costs.

Where cryptocurrencies are headed from this point forward is still uncertain. Conditions might be oversold, yet a poor sentiment can act as a drag on valuations. Buyers might be thinking this is the right moment to step in, however, a new wave of selling could provide more attractive levels for long-term investments in Bitcoin.

The market expects the Bitcoin ETF industry to expand in other leading countries, but in the meantime, Dripcoin and other trading platforms can continue to attract more customers, due to affordability and transparency.