The bitcoin rally that welcomed a wave of new investors through easy-to-access exchange-traded funds (ETFs) has officially gone underwater.
Investors in US ETFs that offer direct access to the cryptocurrency are now sitting on collective losses.
The average cost basis across all ETF inflows sits at approximately US$89,600 – a level bitcoin breached on Tuesday, according to Sean Rose at market intelligence firm Glassnode.
That figure reflects the flow-weighted average price of all ETF inflows since launch. When bitcoin trades below that line, the cohort is in the red.
The good news: a slew of purchases made when the coin was between US$40,000 and US$70,000 are still in profit, Rose said.
The milestone underscores how fast optimism has faded in crypto markets. After surging to records in early October, bitcoin has now dropped more than 30 per cent, fuelled by risk-averse traders and longer-term holders cashing out.
