Today in Crypto: Bitcoin ETFs Decline up to 70%; Forum Questions Blockchain’s Usefulness

Cryptocurrency exchange-traded funds (ETFs) that track Bitcoin through managed future contracts were trading all-time lows Wednesday (June 15) in the wake of a severe downturn in the crypto market.

As Seeking Alpha reports, this includes the ProShares Bitcoin Strategy ETF — the first Bitcoin ETF on the market, debuting last October — which has fallen almost 70%.

In addition to ProShares, top ETFs Valkyrie Bitcoin Strategy ET and VanEck Bitcoin Strategy ETF have all hit record lows in the wake of the Bitcoin selloff.

Bitcoin has dropped 69% from its record high, falling 55% this year alone, and thus dragging down the ETFs, which were designed to mirror the fortunes of Bitcoin.

The report notes that the popular Grayscale Bitcoin Trust has been trading lower this year, by 60.1%. That’s not its lowest level on record, but it is a 20-month low for the fund.

Meanwhile, the crypto world is facing added pressure as cryptocurrency hedge fund Three Arrows Capital has seen up to $400 million in liquidations, a development that could bring the fund to insolvency.

In other news, The New York Times reports on a recent policy discussion on a forum on the future of money in which cryptocurrency was a key topic of conversation.

Among the participants was Cornell University economics professor Eswar Prasad, author of the 2021 book “The Future of Money,” who said recent developments in the crypto market suggest to him that cryptocurrencies are purely speculative assets and likely not the key to global economic salvation.

Prasad says he sees “the real promise of blockchain technology,” which provides added access and transparency, but fears that the new industry will repeat old patterns.

“At this moment, we have this fantastic technology, which could lead us to a more glorious world,” he said. “But there is a great risk of subversion.”

The story also noted that some critics question whether cryptocurrencies aren’t an example of “predatory inclusion” at work. That’s the concept of increased access to products or services, but bringing exploitative or dangerous terms which undermine the benefits.

The phrase has been applied to housing and loans that target minorities, but it also increasingly comes up in discussions of crypto, said Kara Swisher, a veteran tech journalist and New York Times Opinion podcaster.

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