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After a Super 1H23, Crypto ETFs Likely to Rule in 2H?
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The cryptocurrency ETFs experienced a rebound in the first half of 2023 and is due for further rally in the second half too. Bitcoin broke through the $31,000 mark amidst growing bullish sentiment. Bitcoin is up 17% on a weekly basis. Several factors are responsible for the current rally. We’ll tell you why.
Blackrock, WisdomTree and Invesco Plan to Launch Bitcoin ETFs: The filing of spot ETF applications by renowned asset managers fueled a growing interest in cryptocurrencies from institutional and corporate clients. While the Securities and Exchange Commission (SEC) has been in denial for a Bitcoin ETF for long, the filings represent a significant step towards widespread adoption. The world’s largest asset manager BlackRock’s plans to launch a bitcoin ETF in June influenced the entire space. Two other large investment firms now joined the queue, WisdomTree and Invesco.
Traditional Finance Giants Explore Crypto Space: Renowned financial institutions, including Charles Schwab, Fidelity, and Citadel Securities, have partnered to launch EDX Markets, a crypto exchange platform. EDX Markets, which had faced delays due to regulatory uncertainty, has finally listed major cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
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.
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.
Bitcoin Having Expected in 2024: Halving events, which occur about every four years, lower the mining rewards by half. The resulting shortage of newly mined BTC has historically played a crucial role in driving price rallies. As the having event looms in 2024, traders are tightening their belts for a new cycle. So, there is high chance of an upward momentum for Bitcoin.
Binance’s Crisis Seems to be Removing: The SEC accused the world's largest cryptocurrency exchange, Binance of operating an unregistered securities exchange and brought out a lawsuit against them on Jun 5. Binance succeeded in avoiding a comprehensive asset freeze that SEC had requested.
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.
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.
ETFs in Focus
The following crypto-related ETFs jumped in the first half of 2023. These ETFs may gain in the second half as well.
Image: Bigstock
After a Super 1H23, Crypto ETFs Likely to Rule in 2H?
The cryptocurrency ETFs experienced a rebound in the first half of 2023 and is due for further rally in the second half too. Bitcoin broke through the $31,000 mark amidst growing bullish sentiment. Bitcoin is up 17% on a weekly basis. Several factors are responsible for the current rally. We’ll tell you why.
Blackrock, WisdomTree and Invesco Plan to Launch Bitcoin ETFs: The filing of spot ETF applications by renowned asset managers fueled a growing interest in cryptocurrencies from institutional and corporate clients. While the Securities and Exchange Commission (SEC) has been in denial for a Bitcoin ETF for long, the filings represent a significant step towards widespread adoption. The world’s largest asset manager BlackRock’s plans to launch a bitcoin ETF in June influenced the entire space. Two other large investment firms now joined the queue, WisdomTree and Invesco.
Traditional Finance Giants Explore Crypto Space: Renowned financial institutions, including Charles Schwab, Fidelity, and Citadel Securities, have partnered to launch EDX Markets, a crypto exchange platform. EDX Markets, which had faced delays due to regulatory uncertainty, has finally listed major cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
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.
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.
Bitcoin Having Expected in 2024: Halving events, which occur about every four years, lower the mining rewards by half. The resulting shortage of newly mined BTC has historically played a crucial role in driving price rallies. As the having event looms in 2024, traders are tightening their belts for a new cycle. So, there is high chance of an upward momentum for Bitcoin.
Binance’s Crisis Seems to be Removing: The SEC accused the world's largest cryptocurrency exchange, Binance of operating an unregistered securities exchange and brought out a lawsuit against them on Jun 5. Binance succeeded in avoiding a comprehensive asset freeze that SEC had requested.
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.
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.
ETFs in Focus
The following crypto-related ETFs jumped in the first half of 2023. These ETFs may gain in the second half as well.
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%