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9 Best ETFs of Winning Investing Area of Last Week - Crypto
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Wall Street was upbeat last week with the S&P 500, the Dow Jones and the Nasdaq Composite gaining more than 2.4%, 2.3% and 3.3%, respectively. The rally was mainly driven moderating U.S. inflation, which lessened chances of steep Fed rate hikes from here. Such a possibility helped the high-growth investing areas like cryptocurrency mining and blockchain.
Moreover, there were a few additional developed that drove this investing area. Let’s delve a little deeper.
Coinbase’s Case Strengthened Legally
Coinbase’s arguments in its legal case against the U.S. Securities and Exchange Commission have been strengthened after a key court ruling went partially in favor of cryptocurrency firm Ripple, the U.S. exchange’s legal chief told CNBC on Friday. Notably, GraniteShares 1.5x Long Coinbase Daily ETF (CONL - Free Report) added 51.8% last week.
Notably, a U.S. judge ruled that XRP token purchases via exchanges were not securities transactions. The SEC prosecuted Ripple, the company behind the XRP token, in 2020, alleging that the company broke securities laws.
If this was not enough, the overall environment for the cryptocurrency investing has been bullish in recent times. Increased transaction fees, prominent issuers’ interest in launching a bitcoin ETF also acted as drivers in boosting those stocks. Plus, the leveraged beta effect, which tends to boost mining stocks more than the underlying asset, played a key role.
What Are Silver Linings?
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.
Positive Outlook for Bitcoin Mining Companies: Bitcoin mining stocks are well-positioned for growth. Mining companies have been making expansion moves, increasing their hash rates, and planning to acquire more mining machines. Such companies include Hut 8 Mining, Riot Platforms and Cleanspark. In fact, bitcoin hash rate hit a new all-time high amid weakening prices.
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.
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.
Against this backdrop, following are the regular ETFs on this concept that won last week.
ETFs in Focus
VanEck Digital Transformation ETF (DAPP - Free Report) ) – Up 16.0%
Image: Shutterstock
9 Best ETFs of Winning Investing Area of Last Week - Crypto
Wall Street was upbeat last week with the S&P 500, the Dow Jones and the Nasdaq Composite gaining more than 2.4%, 2.3% and 3.3%, respectively. The rally was mainly driven moderating U.S. inflation, which lessened chances of steep Fed rate hikes from here. Such a possibility helped the high-growth investing areas like cryptocurrency mining and blockchain.
Moreover, there were a few additional developed that drove this investing area. Let’s delve a little deeper.
Coinbase’s Case Strengthened Legally
Coinbase’s arguments in its legal case against the U.S. Securities and Exchange Commission have been strengthened after a key court ruling went partially in favor of cryptocurrency firm Ripple, the U.S. exchange’s legal chief told CNBC on Friday. Notably, GraniteShares 1.5x Long Coinbase Daily ETF (CONL - Free Report) added 51.8% last week.
Notably, a U.S. judge ruled that XRP token purchases via exchanges were not securities transactions. The SEC prosecuted Ripple, the company behind the XRP token, in 2020, alleging that the company broke securities laws.
If this was not enough, the overall environment for the cryptocurrency investing has been bullish in recent times. Increased transaction fees, prominent issuers’ interest in launching a bitcoin ETF also acted as drivers in boosting those stocks. Plus, the leveraged beta effect, which tends to boost mining stocks more than the underlying asset, played a key role.
What Are Silver Linings?
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.
Positive Outlook for Bitcoin Mining Companies: Bitcoin mining stocks are well-positioned for growth. Mining companies have been making expansion moves, increasing their hash rates, and planning to acquire more mining machines. Such companies include Hut 8 Mining, Riot Platforms and Cleanspark. In fact, bitcoin hash rate hit a new all-time high amid weakening prices.
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.
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.
Against this backdrop, following are the regular ETFs on this concept that won last week.
ETFs in Focus
VanEck Digital Transformation ETF (DAPP - Free Report) ) – Up 16.0%
Global X Blockchain ETF (BKCH - Free Report) ) – Up 15.5%
Valkyrie Bitcoin Miners ETF (WGMI - Free Report) ) – Up 15.5%
Bitwise Crypto Industry Innovators ETF (BITQ - Free Report) ) – Up 15.3%
First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT - Free Report) ) – Up 14.9%
Fidelity Crypto Industry and Digital Payments ETF (FDIG - Free Report) ) – Up 14.8%
iShares Blockchain and Tech ETF (IBLC - Free Report) ) – Up 13.4%
Schwab Crypto Thematic ETF (STCE - Free Report) ) – Up 12.7%
Invesco Alerian Galaxy Crypto Economy ETF (SATO - Free Report) ) – Up 11.9%