Funds traded on exchanges related to the cryptocurrency market and blockchain space rose as FTX founder Sam Bankman-Fried was arrested in the Bahamas on Tuesday morning for deceiving investors.
In response to the news, Bitcoin (BTC-USD) and As Bitcoin rose, other crypto assets were pushed higher 1.5% Trying to regain the $17,500 level.
As a result, the ProShares Bitcoin Strategy ETF (NYSEARCA: Vito), Valkyrie Bitcoin Strategy ETF (BTF), and VanEck Bitcoin Strategy ETF (XBTF) are also rising.
BITO, BTF, and XBTF are 1.9%, 2%When 2.4% each Tuesday. All three funds offer investors access to Bitcoin through managed futures contracts.
At the same time, Amplify Transformational Data Sharing ETF (NYSEARCA:BLOK) acquisition 2.4%Bitwise Crypto Industry Innovators ETF (NYSEARCA:BITQ) jumped 2.3%and the VanEck Digital Transformation ETF (DAPP) 1%.
Blockchain-based ETFs do not directly invest in Bitcoin or other crypto assets, but they do so indirectly. Funds such as BLOK, BITQ and DAPP provide exposure to equities related to crypto platforms, crypto mining and other related companies at the forefront of the digital economy.
Bankman-Fried’s arrest came just a day before he was expected to testify before the House Financial Services Committee.