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5 ETFs Up in Double-Digits Post Fed's Fourth Rate Hike

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Wall Street rallied on Wednesday following the Fed’s fourth consecutive rate hike decision. While the rally was braod-based, the tech-heavy Nasdaq Composite Index had its biggest one-day percentage gain in more than two years, surging 4.1%. Meanwhile, the S&P 500 and the Dow Jones Industrial Average rose 2.6% and 1.4%, respectively.

With this, most ETFs gained in double digits on the day. Global X Blockchain ETF (BKCH - Free Report) led the way higher, jumping 12.6%. This was followed by iShares Blockchain and Tech ETF (IBLC - Free Report) , Viridi Bitcoin Miners ETF (RIGZ - Free Report) , VanEck Vectors Digital Transformation ETF (DAPP - Free Report) and VanEck Digital Assets Mining ETF (DAM - Free Report) .

The central bank raised interest rates by 75 bps as expected to fight inflation in the range of 2.25% and 2.5% and said it is “strongly committed to returning inflation to its 2% objective.” It also hinted that it could slow the pace of its rate hike campaign at some point (read: Has the Market Bottomed? 6 ETFs in High Momentum).

Jerome Powell stated, “it was too soon to say whether the Fed would dial down the size of its rate increases to a half-percentage point or a quarter-percentage point at its next meeting in September. But it would be appropriate to slow the pace of rate increases to assess their cumulative impact on the economy.”

Rate hikes increase the cost of borrowing money, which can help slow inflation. But it will also hurt consumer spending as higher rates will result in added costs for consumers already dealing with elevated prices for goods and services. This trend is mainly due to the latest bouts of data that show signs of cooling consumer spending, consumer confidence, hiring and housing activity. The Fed does not believe that the U.S. economy is currently in a recession but thinks that it is softening.

Let’s dig into the details of the above-mentioned ETFs:

Global X Blockchain ETF (BKCH - Free Report)

Global X Blockchain ETF seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology, including companies in digital asset mining, blockchain & digital asset transactions, blockchain applications, blockchain & digital asset hardware, and blockchain & digital asset integration. Global X Blockchain ETF holds 24 stocks in its basket with a double-digit allocation to the two top firms.

Global X Blockchain ETF has gathered $57.9 million in its asset base and trades in an average daily volume of 166,000 shares. It charges 50 bps in annual fees.

iShares Blockchain and Tech ETF (IBLC - Free Report)

iShares Blockchain and Tech ETF seeks exposure to a wide variety of companies that are involved in the development, innovation and utilization of blockchain and crypto technologies. It follows the NYSE FactSet Global Blockchain Technologies Index and holds 33 stocks in its basket (read: Pain Ahead for Bitcoin & Related ETFs?).

NYSE FactSet Global Blockchain Technologies Index has gathered $5.9 million in its asset base and charges 47 bps in annual fees. It trades in a volume of 6,000 shares per day on average.

Viridi Bitcoin Miners ETF (RIGZ - Free Report)

Viridi Bitcoin Miners ETF is an actively managed ETF focused on the securities of companies that engage in Bitcoin mining, holding 21 stocks in its basket.

Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF has attracted $6.5 million in its asset base. It charges 90 bps in annual fees and trades in an average daily volume of 5,000 shares.

VanEck Vectors Digital Transformation ETF (DAPP - Free Report)

VanEck Vectors Digital Transformation ETF aims to offer exposure to companies that are at the forefront of the digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 24 securities in its basket.

VanEck Vectors Digital Transformation ETF charges 50 bps in annual fees and trades in an average daily volume of 100,000. DAPP has accumulated $32.2 million in its asset base.

VanEck Digital Assets Mining ETF (DAM - Free Report)

VanEck Digital Assets Mining ETF offers exposure to companies participating in the digital assets mining economy by tracking the MVIS Global Digital Assets Mining Index. It holds 33 stocks in its basket with a well-diversified portfolio as each accounts for no more than 16% share (read: 5 Dividend ETFs Enjoying Huge Investor Love).

VanEck Digital Assets Mining ETF has attracted $1.5 million in its asset base since its inception in May. It charges 50 bps in annual fees and trades in volume of under 1,000 shares per day on average.

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