Cryptocurrencies and crypto-focused stocks have been quick to give up the gains accrued in the run-up to the SEC’s approval for spot BTC ETFs. Bitcoin (BTC-USD) and Ethereum (ETH-USD) have corrected by 3.2% and 2.3%, respectively, over the past five sessions. The decline has now pushed the total drop in BTC to over 6% so far this month. The crypto bellwether‘s market capitalization now stands at just a little over $800 billion.
The declines in Solana (SOL-USD) and Ripple (XRP-USD) have been even steeper at 14% and 13%, respectively, during this period. Notably, Coinbase (NASDAQ:COIN) has tanked by nearly 28% so far in 2024 amid a slew of developments. While the SEC has accused COIN of unlawfully facilitating cryptocurrency trading, a judge recently refused to make a decision from the bench. While courts remain undecided on whether to classify crypto sales as securities, COIN has contended that buying crypto tokens is more akin to collecting Beanie Babies (a rage among collectors in the 1990s) than investing in stocks or bonds, according to Bloomberg.
At the other end of the spectrum, JP Morgan’s (NYSE:JPM) Jamie Dimon recently vented that BTC is like a “pet rock” that “does nothing,” according to CoinDesk. Last month, the CEO of JPM urged lawmakers to shut down cryptos. On the flipside, Dimon is one of the authorized participants for the iShares Bitcoin ETF (IBIT), according to CoinDesk.
The current chart setup for BTC suggests a sharp correction if the price weakness continues for a few more sessions. Meanwhile, Ark Investment Management has bought 365,427 shares of its own BTC ETF, the ARK 21 Shares Bitcoin ETF (ARKB).
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