Bitcoin (BTC) experienced a sudden flash crash late Friday outside regular trading hours, which has sparked renewed discussions about the business hours of Bitcoin exchange-traded funds (ETFs), particularly those focused on BTC. The iShares Bitcoin Trust ETF (NASDAQ: ibit) was at the center of this debate.
The leading cryptocurrency plummeted from more than $116,000 to below $110,000 almost instantly, coinciding with statements from President Donald Trump about imposing tariffs on China due to its tough export control measures.
This unexpected market movement caught many traders off guard and resulted in over $19 billion in liquidations, marking the largest single-day loss in the history of cryptocurrencies.
This selloff has raised significant concerns regarding the absence of 24/7 trading in BTC ETFs, which have become popular among institutional investors. As Tommy Doyle, the Global Head of Client Management at a major support bank, pointed out, the drastic overnight price fluctuations underscore the growing necessity for continuous liquidity as part of sound risk management.
The challenge lies in that these ETFs, with nearly $100 billion in IBIT, are tied to standard stock trading hours, thus preventing investors from capitalizing on price changes that occur over the weekend.
Doyle emphasized that while Bitcoin ETFs are restricted by traditional market hours, investors with direct Bitcoin accounts can manage their exposure and liquidity at any time, which is increasingly crucial during volatile periods.
It is important to note that Robinhood allows trading from Sunday 8:00 PM ET to Friday 8:00 PM ET, but some restrictions exist.
Additionally, the IBIT ETF, managed by BlackRock according to SoSo Value, is currently one of the largest crypto-focused investment funds, holding around $94 billion in assets.
In the week ending October 10th, BTC ETFs reported a net inflow of over $2.7 billion, illustrating their ongoing popularity.
Current trends point to the necessity for investors to think beyond individual assets and consider a more diversified portfolio.
