Bitcoin’s recent flash crash, which occurred late Friday evening outside of standard trading hours, has sparked renewed discussions about the operational hours of spot Bitcoin exchange-traded funds (ETFs), particularly the iShares Bitcoin Trust ETF (NASDAQ:IBIT). The leading cryptocurrency experienced a dramatic decline, plunging from $116,000 to below $110,000 in just minutes following President Trump’s announcement of a potential 100% tariff on Chinese imports in reaction to their aggressive export controls.
This abrupt market movement took many traders by surprise, resulting in liquidations worth over $19 billion, marking one of the largest single-day losses in the cryptocurrency realm. The incident has raised flags regarding the constraints of traditional trading hours on Bitcoin ETFs, which are becoming increasingly favored by institutional investors.
According to Tommy Doyle, the global head of client management at Xapo Bank, the recent volatility in Bitcoin’s pricing illustrates the critical need for 24/7 liquidity among institutional investors. He emphasized that access to continuous trading is essential for effective risk management, especially during times of rapid price fluctuations.
Currently, Bitcoin ETFs, including IBIT, which manages nearly $100 billion in assets, adhere to stock market trading hours, limiting investors’ ability to react to significant price changes during weekends. Doyle pointed out that while Bitcoin ETFs are subject to these trading hours, institutional investors with direct accounts can still manage their bitcoin exposure and liquidity around the clock.
In contrast, platforms like Robinhood offer trading from 8 p.m. ET on Sundays until 8 p.m. ET on Fridays, albeit with some restrictions. Following the recent crash, Bitcoin ETFs have seen notable activity, with net inflows surpassing $2.70 billion during the week ending October 10.
This market turbulence serves as a reminder of the broader shift towards diversified investment strategies that encompass various asset classes, encouraging investors to think beyond single stocks or specific market trends. As economic cycles fluctuate, investment approaches that span real estate, fixed income, and alternative assets gain traction among those seeking to mitigate risks and enhance returns.
In this environment, several platforms are emerging to cater to the evolving needs of investors. For example, Arrived Homes allows individuals to invest in real estate with minimal capital by purchasing fractional shares of rental properties starting as low as $100. Meanwhile, Worthy Property Bonds offers SEC-qualified, interest-bearing bonds starting at $10, delivering a stable return for conservative investors.
Self-directed investment options are also on the rise, enabling individuals to control their retirement savings more flexibly. IRA Financial, for instance, facilitates investments in alternative assets, empowering investors to build diverse portfolios that align with their long-term goals.
Additional innovative platforms, such as Moomoo, are providing attractive cash management options, offering competitive interest rates for uninvested cash without the need for increased risk. Similarly, SoFi presents a myriad of professionally managed alternative funds, broadening diversification and potentially improving returns over time.
Moreover, Range Wealth Management introduces a modern subscription-based model for financial planning, providing unlimited access to fiduciary advisors without asset-based fees, making it particularly appealing to high-income professionals.
For investors keen on safeguarding their portfolios against inflation or economic uncertainty, American Hartford Gold offers a straightforward method to acquire physical gold and silver, either within an IRA or through direct delivery, meeting the needs of those seeking tangible asset protection.
The recent Bitcoin flash crash underscores the importance of adaptability in investment strategies, as market dynamics continue to evolve rapidly.
