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Bitcoin (CRYPTO: BTC) experienced a dramatic flash crash late on Friday, occurring outside standard trading hours, which has sparked renewed discussions regarding the trading times of spot BTC exchange-traded funds, specifically the iShares Bitcoin Trust ETF (NASDAQ:IBIT).
The leading cryptocurrency plunged from $116,000 to below $110,000 in mere minutes following President Donald Trump’s threat of imposing 100% tariffs on China in reaction to its “aggressive stance” on export controls.
The abrupt decline surprised traders, leading to over $19 billion in liquidations, marking the largest single-day loss in the history of cryptocurrency.
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The drastic drop raised alarms regarding the inability of BTC exchange-traded funds to trade 24/7, as these funds have gained popularity among institutional investors. Forbes cited Tommy Doyle, head of global client management at Xapo Bank, expressing concern over this issue.
“The significant volatility in Bitcoin’s price overnight shows why institutional players increasingly see the need for 24/7 liquidity as an essential aspect of managing risk effectively,” Doyle stated.
Importantly, these ETFs, including the nearly $100 billion IBIT, are restricted to stock market hours, limiting investors’ capacity to react to price fluctuations occurring over the weekend.
“While Bitcoin ETFs are still conformed to traditional market trading hours, institutions with direct Bitcoin accounts can access liquidity and manage their Bitcoin risks all weekend long, particularly vital during notable price changes,” Doyle mentioned to Forbes.
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Additionally, it’s notable that Robinhood facilitates trading from 8 p.m. ET on Sunday to 8 p.m. ET on Friday, albeit with certain limitations.
BlackRock’s IBIT ETF stands as the largest cryptocurrency investment fund operational today, managing assets close to $94 billion, according to SoSo Value.
Overall, BTC ETFs witnessed net inflows surpassing $2.70 billion for the week ending October 10.
Image Courtesy: Arsenii Palivoda on Shutterstock.com
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