Bitcoin drop weighs on crypto ETFs

Exchange traded funds focused on Bitcoin (BTC-USD) have come under pressure on Friday as the cryptocurrency dropped 8.6% in Friday's early trading, falling below $21.5K. Four funds in particular that are on the move are the ProShares Bitcoin Strategy ETF (NYSEARCA:BITO), Valkyrie Bitcoin Strategy ETF (NASDAQ:BTF), VanEck Bitcoin Strategy ETF (XBTF) and the ProShares Short Bitcoin Strategy ETF (NYSEARCA:BITI).Early into the session, BITO, BTF, and XBTF found themselves lower by 8.5%, 8.5% and 8.3%, respectively. All three funds track the price of bitcoin through the use of bitcoin futures contracts, which allow the funds to mimic the price moves of the underlying crypto asset.At the same time, BITI was +8.4% early Friday, as it is an inverse bitcoin exchange traded fund that moves in opposite parallel to the price of cryptocurrency.Bitcoin’s drop in price has now erased all of its August gains, with the crypto falling to its lowest level since July 27.Year-to-date price action: BTC-USD -54.6%, BITO -54.4%, BTF -49.9%, XBTF -49.8%, and BITI -6.1%.Elsewhere in the sector, the fall in Bitcoin has pulled down related crypto-based stocks.