Today in crypto, a large cohort of spot Bitcoin exchange-traded fund (ETF) investors is underwater as Bitcoin dipped further below $90,000, while Bitwise’s Matt Hougan and BitMine’s Tom Lee have tipped a bottom this week, and Republic Technologies raised $100 million to build a substantial Ether treasury.
Average Bitcoin ETF investor now underwater as BTC falls below $89,600
Bitcoin’s rapid pullback has pushed the average US spot Bitcoin ETF investor into the red for the first time since the products launched.
The flow-weighted cost basis across all US Bitcoin (BTC) ETFs sits near $89,600, a level Bitcoin fell below on Tuesday, leaving the cohort underwater, Glassnode analyst Sean Rose told Bloomberg on Tuesday. Some early buyers, particularly those who entered when Bitcoin was between $40,000 and $70,000, still remain in profit.
“Even with the average ETF cost basis above spot, most ETF holders are long-term allocators, so being underwater doesn’t trigger quick exits,” Vincent Liu, the chief investment officer at quantitative trading firm Kronos Research, told Cointelegraph.
“In this risk-off environment, liquidity and macro remain the key drivers. Tight conditions can turn losses into downside pressure, while clear easing signals lift anchors,” Liu added.
On Monday, US spot Bitcoin ETFs extended their multiday bleed, with a combined $254.6 million in outflows, according to data from Farside Investors
Bitcoin falls below $90,000: BitMine, Bitwise execs tip bottom this week
Bitcoin could hit a bottom as soon as this week, according to BitMine chairman Tom Lee and Bitwise Asset Management chief investment officer Matt Hougan, as Bitcoin briefly dropped below $90,000, its lowest price in seven months.
During an interview on Monday with CNBC, Lee said crypto is suffering after the big liquidation event on Oct. 10, and traders are still nervous about whether the US Federal Reserve will cut rates in December.
“I think that’s all creating this downside pressure. But I think the good news is there are signs of exhaustion. I did speak with Tom Demar of Demar Analytics, and he thinks there are signs that would look like a bottom that could be occurring sometime this week,” Lee said.
Hougan agreed that a bottom is incoming soon and also added that current price levels present a “generational opportunity” and a “gift for long-term investors.”
Bitcoin briefly fell under $90,000 on Tuesday, according to CoinGecko, a price last seen in April.
Earlier this week, crypto executives told Cointelegraph that the recent weakness in the cryptocurrency markets was due to a combination of factors, including outflows from exchange-traded funds, long-term sales by whales, and escalating geopolitical tensions.
Republic Technologies secures $100 million for Ether purchase
Republic Technologies — formerly Beyond Medical Technologies — has secured a $100 million convertible note facility to build a substantial Ether (ETH) treasury, using financial terms the company said are unique in the digital asset sector.
The facility carries a 0% interest rate, requires no ongoing interest payments and includes no collateral requirements if the price of Ether declines. Republic emphasized that the raise limits dilution, contrasting it with BitMine Immersion’s recent $365 million financing, which included warrant coverage and resulted in shareholder dilution.
Republic Technologies plans to deploy the capital to expand its Ether treasury strategy, joining at least 18 other publicly traded companies pursuing similar approaches, according to industry data.
