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As we traverse the halfway point of 2023, we look back at the best investing area so far this year. Clearly, cryptocurrency and the related investing areas have emerged as winners.
In fact, bitcoin just completed a technical chart pattern that might indicate the start of another major bull market. The segment’s ETFs have returned around 100% so far this year, while bitcoin itself is up about 72% this year. Notably, despite the occasional phases of price crash, cryptocurrencies like Bitcoin have proven to be sturdy and robust.
The surge in prices of cryptocurrency-related ETFs in 2023 can be attributed to a host of factors:
Post-Pandemic Recovery: The ebbing pandemic and the return of risk-on trade sentiments have led to renewed interest in cryptocurrencies. As some stock markets peaked, investors returned to the crypto market???. Also, there has been an uptick in cryptocurrency users in 2023.
A Less-Hawkish Fed: The Fed has turned less hawkish this year, having lowered the magnitude and momentum of policy tightening. In fact, the Fed paused its rate hike in June after 10 successive increases. Such activities boosted growth in investing areas like cryptocurrency.
Cheaper Valuation: Last year, bitcoin was thrashed as rising rates weighed on speculative and growth investments. This has helped the crypto block to bounce back with all force.
Institutional Adoption: Institutions such as JPMorgan and Goldman Sachs, which were against virtual currencies before, have started implementing them into their systems. This is a sign of growing acceptance among institutional investors.
Blackrock’s Plans to Launch Bitcoin ETF: The world’s largest asset manager BlackRock’s plans to launch a bitcoin ETF in June influenced the entire space. Moreover, the world's largest cryptocurrency exchange, Binance, succeeded in avoiding a comprehensive asset freeze that SEC had requested. The SEC accused Binance of operating an unregistered securities exchange and brought out a lawsuit against them on Jun 5.
Favorable Regulations in the Cards? Though the SEC’s stance toward cryptocurrency has been adverse so far, back-to-back efforts in launching an ETF from reported issuers stirred speculation that such intuitional initiatives might compel legislative institutions to figure out how to classify and regulate them.
Sustainability Parameter: Cryptocurrencies are being promoted as an eco-friendlier investment. Sustainability concerns are in vogue lately as the global investing world is concerned about climate change???.
Against this backdrop, below, we highlight a few crypto-related ETFs that jumped in the first half of 2023.
Image: Bigstock
Best Investing Area of 2023 & Its Top ETFs
As we traverse the halfway point of 2023, we look back at the best investing area so far this year. Clearly, cryptocurrency and the related investing areas have emerged as winners.
In fact, bitcoin just completed a technical chart pattern that might indicate the start of another major bull market. The segment’s ETFs have returned around 100% so far this year, while bitcoin itself is up about 72% this year. Notably, despite the occasional phases of price crash, cryptocurrencies like Bitcoin have proven to be sturdy and robust.
The surge in prices of cryptocurrency-related ETFs in 2023 can be attributed to a host of factors:
Post-Pandemic Recovery: The ebbing pandemic and the return of risk-on trade sentiments have led to renewed interest in cryptocurrencies. As some stock markets peaked, investors returned to the crypto market???. Also, there has been an uptick in cryptocurrency users in 2023.
A Less-Hawkish Fed: The Fed has turned less hawkish this year, having lowered the magnitude and momentum of policy tightening. In fact, the Fed paused its rate hike in June after 10 successive increases. Such activities boosted growth in investing areas like cryptocurrency.
Cheaper Valuation: Last year, bitcoin was thrashed as rising rates weighed on speculative and growth investments. This has helped the crypto block to bounce back with all force.
Institutional Adoption: Institutions such as JPMorgan and Goldman Sachs, which were against virtual currencies before, have started implementing them into their systems. This is a sign of growing acceptance among institutional investors.
Blackrock’s Plans to Launch Bitcoin ETF: The world’s largest asset manager BlackRock’s plans to launch a bitcoin ETF in June influenced the entire space. Moreover, the world's largest cryptocurrency exchange, Binance, succeeded in avoiding a comprehensive asset freeze that SEC had requested. The SEC accused Binance of operating an unregistered securities exchange and brought out a lawsuit against them on Jun 5.
Favorable Regulations in the Cards? Though the SEC’s stance toward cryptocurrency has been adverse so far, back-to-back efforts in launching an ETF from reported issuers stirred speculation that such intuitional initiatives might compel legislative institutions to figure out how to classify and regulate them.
Sustainability Parameter: Cryptocurrencies are being promoted as an eco-friendlier investment. Sustainability concerns are in vogue lately as the global investing world is concerned about climate change???.
Against this backdrop, below, we highlight a few crypto-related ETFs that jumped in the first half of 2023.
ETFs in Focus
Valkyrie Bitcoin Miners ETF (WGMI - Free Report) – Up 145.6%
VanEck Digital Transformation ETF (DAPP - Free Report) – Up 114.6%
Bitwise Crypto Industry Innovators ETF (BITQ - Free Report) – Up 102.7%
Global X Blockchain ETF (BKCH - Free Report) – Up 96.9%
Invesco Alerian Galaxy Crypto Economy ETF (SATO - Free Report) – Up 93.3%