Bitcoin ETF of Horizon in Canada is currently struggling in order to fill the orders coming from the investors. This is mainly due to the fast market sell-off.
This week has been very bad for the leading cryptocurrency, Bitcoin since it has gone down by 27.5% in its market capitalization. In addition, the regulatory measures of China, the panic selling, and Elon Musk have greatly contributed to the recent market crash. As a result, BTC was traded at a $35,871 low.
More Troubles For Bitcoin ETF
The exchange-traded funds or Bitcoin ETFs in Canada have been very alert. According to the reports of Financial Times, Bitcoin ETFs have given warnings of ‘market disruption’ in order to warn the investors.
This newspaper has further added that 2 funds operated by Horizons Canada ETFs have informed their investors regarding the inability to fulfill their purchase and sell orders. This will not be possible if the market conditions do not approve.
The reason behind this is that Horizon invests their ETFs in BTC futures in the Mercantile Exchange of Chicago. They have stopped their trading because of the sell-off. Another futures contract has an agreement that obligates traders to either purchase or sell their asset at a particular time, price, and quantity.
However, if BTC futures prices stay low then investors might not want to invest in them. Furthermore, investors are maintaining a distance owing to the recent price crash of BTC that took place this week.
Although not all the markets of ETF are pessimistic. Despite ‘market disruption’, Horizons mentioned that there is no trouble. Many experts have said that there have been meaningful corrections in the past and this ongoing event is normal and partially healthy.
