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First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT - Free Report) , which provides exposure to the crypto industry and digital economy companies, has gained about 29.4%, becoming the second-best performing ETF of July.
Bitcoin, the world's largest cryptocurrency, last week hit a one-year high, surpassing $31,400 per coin, showcasing the resilience and growing appeal of the world's largest cryptocurrency by market capitalization. Although most of the stocks in CRPT’s portfolio delivered strong returns in July, Riot Platforms Inc. (RIOT - Free Report) , Robinhood Financial LLC (HOOD - Free Report) , Coinbase Global (COIN - Free Report) , Block (SQ - Free Report) , and MicroStrategy Incorporated (MSTR - Free Report) led the way.
The surge was driven by the wave of rising institutional interest in cryptocurrencies. BlackRock recently filed an application for a spot bitcoin ETF, signaling institutional confidence in cryptocurrencies. The crypto exchange EDX Markets, backed by firms such as Charles Schwab, Fidelity Digital Assets and Citadel Securities, also launched its digital asset trading platform last week, adding to the positive sentiment in the crypto space.
Additionally, JPMorgan Chase expanded one of the most high-profile projects to bring blockchain technology to traditional banking, introducing euro-denominated payments for corporate clients using its JPM Coin. The moves could lead to a surge in trading volumes for digital assets (read: Will the Rally in Bitcoin Mining ETFs Last in 2H23?).
However, regulatory crackdowns are weighing on the crypto markets. The US Securities and Exchange Commission filed a lawsuit against Coinbase, the country's largest crypto exchange, accusing it of operating as an unregistered broker. Similarly, Binance, another prominent player in the crypto market, faced legal action as federal regulators sued the company, alleging it was operating an illegal exchange in the United States and commingling customers' assets.
Let’s take a closer look at the fundamentals of CRPT.
CRPT in Focus
First Trust SkyBridge Crypto Industry and Digital Economy ETF is designed to provide exposure to companies that SkyBridge believes are driving cryptocurrency, crypto assets and digital economies-related innovation. SkyBridge identifies securities primarily via “bottom up” research focused on finding companies leading in the crypto industry ecosystem. First Trust SkyBridge Crypto Industry holds 30 stocks in its basket with a doubled-digit concentration on the top five firms. The software industry dominates the fund portfolio at 61% while capital markets take 29% share.
First Trust SkyBridge Crypto Industry and Digital Economy ETF charges 85 bps in fees per year from investors. It has amassed $26 million in its asset base and trades in an average daily volume of 28,000 shares.
Best-Performing Stocks of CRPT
Riot Platforms is a bitcoin-driven infrastructure platform. The company is a bitcoin mining and digital infrastructure company focused on a vertically integrated strategy. Its earnings are expected to decline 140.4% this year.
Robinhood Financial is a registered broker dealer. Robinhood Securities provides brokerage clearing services, while Robinhood Crypto provides cryptocurrency trading. HOOD has an estimated earnings growth of 48.7% for this year and has a market cap of $11.5 billion.
Robinhood Financial has gained 19.4% in July and accounts for a 0.3% share in the ETF. It has a Zacks Rank #3 with a Momentum Score of A.
Coinbase is the largest U.S. cryptocurrency exchange, trading some 50 different digital assets. It has rallied 18.6% in July and makes up for 16.8% in CRPT’s portfolio.
Coinbase has an estimated earnings growth rate of 78.1% for this year and a Zacks Rank #3. It has a solid Momentum Score of A.
Block offers financial and marketing services through its comprehensive commerce ecosystem that helps sellers to start, run and grow their businesses. The stock jumped 18.4% and accounts for a 6.4% share in the ETF (read: 9 Best ETFs of Winning Investing Area of Last Week – Crypto).
Block has an estimated earnings growth rate of 69% for this year and carries a Zacks Rank #3. It has a Growth Score of A.
MicroStrategy is a leading worldwide provider of business intelligence software. The stock rose 15.1% in July and accounts for 20.1% share in the ETF.
MicroStrategy has an estimated earnings growth rate of 125.7% for this year and a Zacks Rank #1. It has a Growth Score of A.
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5 Top-Performing Stocks of the Top ETF of July
First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT - Free Report) , which provides exposure to the crypto industry and digital economy companies, has gained about 29.4%, becoming the second-best performing ETF of July.
Bitcoin, the world's largest cryptocurrency, last week hit a one-year high, surpassing $31,400 per coin, showcasing the resilience and growing appeal of the world's largest cryptocurrency by market capitalization. Although most of the stocks in CRPT’s portfolio delivered strong returns in July, Riot Platforms Inc. (RIOT - Free Report) , Robinhood Financial LLC (HOOD - Free Report) , Coinbase Global (COIN - Free Report) , Block (SQ - Free Report) , and MicroStrategy Incorporated (MSTR - Free Report) led the way.
The surge was driven by the wave of rising institutional interest in cryptocurrencies. BlackRock recently filed an application for a spot bitcoin ETF, signaling institutional confidence in cryptocurrencies. The crypto exchange EDX Markets, backed by firms such as Charles Schwab, Fidelity Digital Assets and Citadel Securities, also launched its digital asset trading platform last week, adding to the positive sentiment in the crypto space.
Additionally, JPMorgan Chase expanded one of the most high-profile projects to bring blockchain technology to traditional banking, introducing euro-denominated payments for corporate clients using its JPM Coin. The moves could lead to a surge in trading volumes for digital assets (read: Will the Rally in Bitcoin Mining ETFs Last in 2H23?).
However, regulatory crackdowns are weighing on the crypto markets. The US Securities and Exchange Commission filed a lawsuit against Coinbase, the country's largest crypto exchange, accusing it of operating as an unregistered broker. Similarly, Binance, another prominent player in the crypto market, faced legal action as federal regulators sued the company, alleging it was operating an illegal exchange in the United States and commingling customers' assets.
Let’s take a closer look at the fundamentals of CRPT.
CRPT in Focus
First Trust SkyBridge Crypto Industry and Digital Economy ETF is designed to provide exposure to companies that SkyBridge believes are driving cryptocurrency, crypto assets and digital economies-related innovation. SkyBridge identifies securities primarily via “bottom up” research focused on finding companies leading in the crypto industry ecosystem. First Trust SkyBridge Crypto Industry holds 30 stocks in its basket with a doubled-digit concentration on the top five firms. The software industry dominates the fund portfolio at 61% while capital markets take 29% share.
First Trust SkyBridge Crypto Industry and Digital Economy ETF charges 85 bps in fees per year from investors. It has amassed $26 million in its asset base and trades in an average daily volume of 28,000 shares.
Best-Performing Stocks of CRPT
Riot Platforms is a bitcoin-driven infrastructure platform. The company is a bitcoin mining and digital infrastructure company focused on a vertically integrated strategy. Its earnings are expected to decline 140.4% this year.
With a market cap of $3.27 billion, Riot Platforms soared 37.7% in July and makes up for a 15.2% share in the CRPT basket. The stock has a Zacks Rank #3 (Hold) and a Momentum Score of B. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Robinhood Financial is a registered broker dealer. Robinhood Securities provides brokerage clearing services, while Robinhood Crypto provides cryptocurrency trading. HOOD has an estimated earnings growth of 48.7% for this year and has a market cap of $11.5 billion.
Robinhood Financial has gained 19.4% in July and accounts for a 0.3% share in the ETF. It has a Zacks Rank #3 with a Momentum Score of A.
Coinbase is the largest U.S. cryptocurrency exchange, trading some 50 different digital assets. It has rallied 18.6% in July and makes up for 16.8% in CRPT’s portfolio.
Coinbase has an estimated earnings growth rate of 78.1% for this year and a Zacks Rank #3. It has a solid Momentum Score of A.
Block offers financial and marketing services through its comprehensive commerce ecosystem that helps sellers to start, run and grow their businesses. The stock jumped 18.4% and accounts for a 6.4% share in the ETF (read: 9 Best ETFs of Winning Investing Area of Last Week – Crypto).
Block has an estimated earnings growth rate of 69% for this year and carries a Zacks Rank #3. It has a Growth Score of A.
MicroStrategy is a leading worldwide provider of business intelligence software. The stock rose 15.1% in July and accounts for 20.1% share in the ETF.
MicroStrategy has an estimated earnings growth rate of 125.7% for this year and a Zacks Rank #1. It has a Growth Score of A.