Divergent performances highlight resilience and challenges for Bitcoin ETFs and equities

Quick Take

Since the approval of Bitcoin ETFs on Jan. 11, the price performance of the digital asset has illustrated an unpredictable pattern, peaking around $49,000 before dipping below $40,000. As of now, Bitcoin hovers around $48,000. This volatile behavior extends to crypto equities and Bitcoin ETFs, which have displayed divergent performances.

Bitcoin-related mining stocks such as Iris Energy and Marathon Digital Holdings have notably experienced double-digit declines of 11% and 12%, respectively. However, not all equities mimic this downward trajectory. CleanSpark and MicroStrategy, for instance, have seen their stock prices surge by 31% and 11%, respectively. Meanwhile, Coinbase suffered a 6% decline and is set to release its Q4 2023 earnings report on Feb. 15.

Owing to the slight decline in Bitcoin since the ETF approval, Bitcoin ETFs have recorded roughly a 3% drop, with GBTC remaining relatively flat. GBTC now records a small premium of 0.02% to its net asset value (NAV), according to YCharts. Nevertheless, the recent Bitcoin resurgence of over $48,000 has injected optimism in the pre-market, with many ETFs and crypto equities witnessing a rise.

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