Today, the crypto market lost $500 billion in value due to a sudden drop. Morgan Stanley’s wealth advisers will soon be able to suggest Bitcoin ETFs to their clients. Cryptocurrency thieves used stolen money to buy cheap Ether. At the same time, Bitcoin mining has become more difficult than ever. Cryptocurrency hackers took advantage of the market crash to buy cheap Ether with stolen funds from past hacks. On August 5, 16,892 Ether was purchased using stolen cryptocurrency from the August 2022 Nomad bridge hack. Data from Cointelegraph Markets Pro and TradingView shows that Ether’s value dropped more than 20% from around $2,760 to $2,172 in under 12 hours.
$500 Billion Shaved Off Total Crypto Market Cap
Crypto hackers often use mixing services like Tornado Cash to hide their tracks and usually have no plans to return the stolen funds. The crypto market has experienced its biggest three-day sell-off in over a year, losing up to $510 billion in total value since August 2. Bitcoin (BTC) and Ether (ETH) have both seen dramatic drops during the recent market downturn on August 5, with Bitcoin falling as much as 10% and Ether dropping 18% in just four hours.
IG Markets analyst Tony Sycamore told Cointelegraph that this downturn highlights how Bitcoin and other crypto assets are highly sensitive to risk. He noted that recession fears, concerns about a potential economic slowdown, and recent conflicts, such as the exchange of rockets between Israel and Hezbollah and increased U.S. military presence in the region, are contributing to the volatility.
BlackRock and Fidelity’s Bitcoin ETFs Attract Financial Advisers
According to CNBC, Morgan Stanley’s 15,000 financial advisers will soon be able to recommend spot Bitcoin ETFs to their clients starting August 7. This means advisers can now suggest shares of BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC).
This move is significant for Bitcoin, as Morgan Stanley manages about $3.75 trillion in client assets. Although US spot Bitcoin ETFs have performed well since their January launch, attracting mostly crypto-savvy retail investors and hedge funds, Morgan Stanley’s clients bring a broader range of investors.
Roxanna Islam, head of sector and industry research at VettaFi, noted that BlackRock’s and Fidelity’s spot Bitcoin ETFs have gained interest from independent financial advisers.
SEE ALSO: Michael Saylor of MicroStrategy Urges to HODL Bitcoin Despite Drop Below $50K
