Exchange-traded funds focused on bitcoin were sliding sharply around midday Tuesday in a broad stock-market slump sparked by an inflation reading for August that was hotter than forecast. The ProShares Bitcoin Strategy ETF BITO, -7.65% was down more than 7% around midday, while the VanEck Bitcoin Strategy ETF XBTF, -7.76% and Valkyrie Bitcoin Strategy ETF BTF, -7.63% were also sliding more than 7%, FactSet data show, at last check. While some bitcoin supporters viewed the cryptocurrency as an inflation hedge, its prices have cratered as the cost of living has soared in 2022. Bitcoin BTCUSD, -7.11% was down around 7% at about $20,747 around midday, with losses so far this year of around 55%, FactSet data show, at last check. Meanwhile, the ICE U.S. Dollar index DXY, +1.19%, a gauge of the dollar’s strength against a basket of rivals, jumped around 1.1%.
