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The Zacks Analyst Blog Highlights BITI, SETH, SBIT and ETHD
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For Immediate Release
Chicago, IL – February 5, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETF’s recently featured in the blog include:Invesco DB US Dollar Index Bullish Fund (UUP - Free Report) ProShares Short Bitcoin ETF (BITI - Free Report) , ProShares Short Ether ETF (SETH - Free Report) , ProShares UltraShort Bitcoin ETF (SBIT - Free Report) and ProShares UltraShort Ether ETF (ETHD - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Pain or Gain in Cryptocurrency ETFs?
Bitcoin, the world's largest cryptocurrency by market value, fell about 12% past week (as of Feb. 1, 2026). At the time of writing, the currency slid below $80, 000, its weakest level since November. Bitcoin has now lost about one-third of its value since hitting record highs in October last year.
Fed Chair Pick Hits Crypto Hard
The sell-off hit the market amid the strengthening of the U.S. dollar following President Donald Trump's selection of former Federal Reserve Governor Kevin Warsh as the next Fed chair. From his past record, Warsh is viewed as hawkish. Investors think that he could tighten financial conditions in order to contain inflation by reducing liquidity in the system.
Warsh previously called for regime change at the central bank and advocated a significantly smaller Federal Reserve balance sheet, per Reuters, as quoted on Yahoo Finance. Invesco DB US Dollar Index Bullish Fund (UUP) gained about 1% on Jan. 30, 2026, on the Warsh news.
Liquidity Concerns Weigh on Speculative Assets
Bitcoin and other cryptocurrencies have long benefited from an expansionary Fed policy, when ample liquidity flowed into financial markets. But the apprehension of the opposite scenario hit the space hard. The Fed stayed put at the January meeting, pausing on its recent rate-cutting cycle.
J.P. Morgan strategists expect only one rate cut in 2026. A cease in the easy money inflows in the market went against the crypto space. Ethereum also fell sharply, dropping about 21% past week (as of Feb. 1, 2026).
How to Play the Trend with ETFs?
While a fully hawkish regime is unlikely in the Trump era (as the President favors a low-rate environment), markets may remain edgy until they get a more unambiguous indication of future central bank policy post May. Hence, cryptocurrency ETFs are unlikely to gain traction for now.
Investors may play this scenario with inverse crypto ETFs such as the ProShares Short Bitcoin ETF and the ProShares Short Ether ETF. Other inverse ETFs include ProShares UltraShort Bitcoin ETF and ProShares UltraShort Ether ETF.
Can Palantir Earnings Revive Risk-on Sentiments?
While AI stocks have been beaten down in recent sessions due to overvaluation concerns and bets over higher rates in the near term, Palantir's upbeat earnings release and solid guidance may revive the sentiment in the AI space.
At the same time, Oracle announced a $25 billion investment-grade bond sale to fund AI infrastructure, further strengthening confidence in sustained capex across the sector, as quoted on FX Empire.
Some analysts expect continued AI strength to boost the risk-on crypto space ahead, as quoted on FX Empire. While we do not rule out that possibility, a monster rally in cryptos, such as the one noticed since late 2024 on the Trump bump, is less likely to materialize until market watchers gain clearer visibility on the central bank policy.
Can Chip Shortage Hurt Crypto Prices?
Crypto depends on semiconductors or chips heavily. A semiconductor or GPU/ASIC chip shortage makes crypto mining equipment expensive. Due to higher hardware prices and longer wait times, network growth may suffer. Smaller miners may leave, reducing network activity.
Agreed, easing regulatory supervision and the GENIUS Act passed in June 2025, which establishes a regulatory framework for the industry, such as full reserve backing and monthly audits, are positives for the crypto space. However, potential disruptions in mining could dampen sentiment for risky assets like cryptocurrencies.
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Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights BITI, SETH, SBIT and ETHD
For Immediate Release
Chicago, IL – February 5, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETF’s recently featured in the blog include: Invesco DB US Dollar Index Bullish Fund (UUP - Free Report) ProShares Short Bitcoin ETF (BITI - Free Report) , ProShares Short Ether ETF (SETH - Free Report) , ProShares UltraShort Bitcoin ETF (SBIT - Free Report) and ProShares UltraShort Ether ETF (ETHD - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Pain or Gain in Cryptocurrency ETFs?
Bitcoin, the world's largest cryptocurrency by market value, fell about 12% past week (as of Feb. 1, 2026). At the time of writing, the currency slid below $80, 000, its weakest level since November. Bitcoin has now lost about one-third of its value since hitting record highs in October last year.
Fed Chair Pick Hits Crypto Hard
The sell-off hit the market amid the strengthening of the U.S. dollar following President Donald Trump's selection of former Federal Reserve Governor Kevin Warsh as the next Fed chair. From his past record, Warsh is viewed as hawkish. Investors think that he could tighten financial conditions in order to contain inflation by reducing liquidity in the system.
Warsh previously called for regime change at the central bank and advocated a significantly smaller Federal Reserve balance sheet, per Reuters, as quoted on Yahoo Finance. Invesco DB US Dollar Index Bullish Fund (UUP) gained about 1% on Jan. 30, 2026, on the Warsh news.
Liquidity Concerns Weigh on Speculative Assets
Bitcoin and other cryptocurrencies have long benefited from an expansionary Fed policy, when ample liquidity flowed into financial markets. But the apprehension of the opposite scenario hit the space hard. The Fed stayed put at the January meeting, pausing on its recent rate-cutting cycle.
J.P. Morgan strategists expect only one rate cut in 2026. A cease in the easy money inflows in the market went against the crypto space. Ethereum also fell sharply, dropping about 21% past week (as of Feb. 1, 2026).
How to Play the Trend with ETFs?
While a fully hawkish regime is unlikely in the Trump era (as the President favors a low-rate environment), markets may remain edgy until they get a more unambiguous indication of future central bank policy post May. Hence, cryptocurrency ETFs are unlikely to gain traction for now.
Investors may play this scenario with inverse crypto ETFs such as the ProShares Short Bitcoin ETF and the ProShares Short Ether ETF. Other inverse ETFs include ProShares UltraShort Bitcoin ETF and ProShares UltraShort Ether ETF.
Can Palantir Earnings Revive Risk-on Sentiments?
While AI stocks have been beaten down in recent sessions due to overvaluation concerns and bets over higher rates in the near term, Palantir's upbeat earnings release and solid guidance may revive the sentiment in the AI space.
At the same time, Oracle announced a $25 billion investment-grade bond sale to fund AI infrastructure, further strengthening confidence in sustained capex across the sector, as quoted on FX Empire.
Some analysts expect continued AI strength to boost the risk-on crypto space ahead, as quoted on FX Empire. While we do not rule out that possibility, a monster rally in cryptos, such as the one noticed since late 2024 on the Trump bump, is less likely to materialize until market watchers gain clearer visibility on the central bank policy.
Can Chip Shortage Hurt Crypto Prices?
Crypto depends on semiconductors or chips heavily. A semiconductor or GPU/ASIC chip shortage makes crypto mining equipment expensive. Due to higher hardware prices and longer wait times, network growth may suffer. Smaller miners may leave, reducing network activity.
Agreed, easing regulatory supervision and the GENIUS Act passed in June 2025, which establishes a regulatory framework for the industry, such as full reserve backing and monthly audits, are positives for the crypto space. However, potential disruptions in mining could dampen sentiment for risky assets like cryptocurrencies.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don't miss out on this valuable resource. It's free!
Get it now >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.