Exchange traded funds tied to the cryptocurrency market and blockchain space picked up ground on Tuesday morning as FTX founder Sam Bankman-Fried was arrested in the Bahamas for defrauding investors. Following the news, Bitcoin ( BTC-USD ) and other crypto assets witnessed a push higher as Bitcoin picked up 1.5% and looks to retake the $17,500 level. As a result, ETFs that have their price action tied to the underlying cryptocurrency like the ProShares Bitcoin Strategy ETF ( NYSEARCA: BITO ), Valkyrie Bitcoin Strategy ETF ( BTF ), and the VanEck Bitcoin Strategy ETF ( XBTF ) have also marched higher. BITO, BTF and XBTF were higher by 1.9% , 2% , and 2.4% respectively on Tuesday. All three funds provide investors access to the Bitcoin through managed futures contracts. At the same time, blockchain funds also tracked higher early on as shares of the Amplify Transformational Data Sharing ETF ( NYSEARCA: BLOK ) gained 2.4% , Bitwise Crypto Industry Innovators ETF ( NYSEARCA: BITQ ) jumped 2.3% , and the VanEck Digital Transformation ETF ( DAPP ) moved up by 1% . While blockchain-based ETFs do not directly invest in Bitcoin or other crypto assets they do however indirectly invest in the space. Funds like BLOK, BITQ, and DAPP offer exposure to stocks that are associated with crypto platforms, crypto mining and other related companies that are at the forefront of the digital economy. Bankman-Fried’s arrest comes just a day before he was expected to testimony before the House Financial Services Committee.
