The Role of ETFs in the Crypto Market Crash
Did ETFs play a role in triggering the recent crypto market crash?
Apparently, it would seem so, but it’s difficult to quantify. They might have played a fundamental role, or perhaps just a superficial one, and it’s not so easy to understand.
The circulating hypothesis is that they did not generate it, but merely amplified it, although to be honest, it was not among the biggest crashes ever.
The Crypto Crash
To understand the extent of the crash, it is advisable to analyze the trend of the price of Bitcoin and Ethereum, as well as that of the so-called Total3.
Bitcoin is actually losing less than 10% compared to seven days ago, and less than 20% compared to thirty days ago. These are losses that cannot be considered monumental, given that in the past there have often been much deeper and faster crashes.
The situation becomes more serious for Ethereum, which is down 17% compared to seven days ago, and 28% compared to thirty days ago.
Although this is not an epochal crash, it remains a relatively significant decline, especially since compared to the all-time highs of August, it is at -33%, against Bitcoin’s -19%.
Other cryptos are performing much worse, such as Solana, which is down 20% compared to seven days ago, down 32% compared to seven days ago, and down 47% from its all-time highs.
The Total3, which measures the market capitalization of all altcoins excluding Ethereum, stablecoins, and of course Bitcoin, is down 7% since Sunday, and down 19% compared to thirty days ago, which is more or less in line with Bitcoin. This indicates that there are altcoins performing worse than BTC, but also altcoins performing better.
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