Bitcoin And Ethereum Suffer Major Flash Crash

Bitcoin and ethereum suffered a major flash crash over the weekend, sending cryptoasset values down by some 20% at points. Prices have now recovered somewhat but both cryptos remain trading well below pre-weekend levels.

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Bitcoin (BITCOMP) began last week trading in the $57,000 range, with some movement during the week, but nothing remarkable. This changed on Friday however as the cryptoasset began to fall precipitously. BTC declined to a low of $45,412 in a matter of hours - a near 20% collapse.

Ethereum likewise fell victim to the flash crash. Having traded up toward $4,700 midweek ETH began to fall in trading on Friday from around $4,600 to a low of $3,652 - a fall of over 20%. 

Both cryptoassets have regained a measure of stability since, with prices rebounding modestly. BTC is now trading around $47,900 while ETH (ETH-X) is trading around $4,000.

Speculation has been rife over what caused the flash crash, with some analysts citing the expiry of leveraged positions. Other evidence meanwhile points to significant increased activity with investors moving cryptoassets from wallets to exchanges - making reaction to price movement more precipitous when it comes. 

The wider backdrop of investment market fears over Omicron seems to be in play too however.

Bitcoin spot ETF launches in Canada

Major asset manager Fidelity Investments has a bitcoin spot ETF in Canada.

The ETF - named the Fidelity Advantage Bitcoin ETF invests directly in bitcoin or through derivative instruments. At least 98% of the ETF’s holdings will be stored in cold wallets. 

The fund is listed on the Toronto stock exchange with the ticker FBTC. The fund will have a 0.4% management fee for investors with customers given the option of investing via Canadian or US dollars. 

Canada is a popular destination for crypto ETFs with more than 20 available to Canadian investors. Fidelity’s offering however is unique among crypto ETFs in offering physical holdings of bitcoin rather than trading on futures. 

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Disclaimer: This article should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been ...

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