We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ETFs in Focus as Bitcoin Tops $105K Ahead of Trump's Inauguration
Read MoreHide Full Article
Bitcoin surged past $105,000 on Friday, marking a significant milestone in the new year. This rally, fueled by reports that President-elect Donald Trump may prioritize cryptocurrencies as a "national priority," has reignited interest in crypto exchange-traded funds (ETFs), as quoted on investors.com.
Crypto ETFs Rally Amid Policy Hopes
Reports of Trump’s potential crypto-friendly policies lifted several crypto ETFs that have been recovering since Wednesday’s cooler inflation data. This rebound followed a sharp sell-off caused by concerns over the Fed possibly delaying rate cuts after a strong jobs report.
Outflows from Bitcoin ETFs totaled $582 million last week, according to CoinDesk, as quoted on investors.com. However, optimism surrounding Trump’s pro-crypto stance has sustained momentum. Notably, his proposed nomination of crypto-friendly lawyer Paul Atkins to head the SEC could further support the sector.
Hut8 and Meta’s AI Partnership Fuels Optimism
Bitcoin miner Hut8 (HUT - Free Report) announced plans to build a $12 billion artificial intelligence data center in Louisiana, potentially in partnership with Meta Platforms (META - Free Report) . This collaboration could strengthen the connection between blockchain technology and AI, driving further interest in crypto-related investments.
Advantages and Risks of Crypto ETFs
Crypto ETFs provide a way to hold diversified digital currencies and stocks such as Coinbase (COIN - Free Report) , Marathon Digital Holdings (MARA - Free Report) , MicroStrategy (MSTR - Free Report) and Riot Platforms (RIOT - Free Report) . Crypto ETFs offer high liquidity compared to some cryptocurrencies and exposure to Bitcoin or other coins without direct ownership risks. However, price volatility of underlying coins, regulatory hurdles remain key concerns.
The ETF BITO tracks bitcoin futures and climbed above its 50-day moving average during a four-day winning streak. Relative Strength Rating surged to 86 from 42 in just three months, as quoted on investors.com.
The underlying MVIS Global Digital Assets Equity Index is a rules-based, modified capitalization-weighted, float-adjusted index intended to give investors a means of tracking the overall performance of the global digital asset segment. The ETF DAPP holds Coinbase, Block, MicroStrategy and Core Scientific. The ETF charges 51 bps in fees and yields 3.47% annually.
Amplify Transformational Data Sharing ETF (BLOK - Free Report)
Diversified portfolio with top holdings in Coinbase, Core Scientific, MicroStrategy, and CleanSpark. Recently regained its 50-day moving average. The ETF BLOK yields 5.39% annually and charges 76 bps in fees.
The underlying Bitwise Crypto Innovators 30 Index measures the performance of companies involved in servicing the cryptocurrency markets, including crypto mining firms, crypto mining equipment suppliers, crypto financial services companies, or other financial institutions servicing primarily crypto-related clientele. It broke out in October but fell below the 50-day line by the year-end. Shares rebounded above the 50-day line last week, driven by renewed optimism, as quoted on investors.com.
WGMI holds stocks like CleanSpark, Bitfarms, Hive Blockchain and NVIDIA. Reversed gains from a 28% surge but reclaimed the 50-day line, offering another potential entry point. The ETF charges 75 bps in fees.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ETFs in Focus as Bitcoin Tops $105K Ahead of Trump's Inauguration
Bitcoin surged past $105,000 on Friday, marking a significant milestone in the new year. This rally, fueled by reports that President-elect Donald Trump may prioritize cryptocurrencies as a "national priority," has reignited interest in crypto exchange-traded funds (ETFs), as quoted on investors.com.
Crypto ETFs Rally Amid Policy Hopes
Reports of Trump’s potential crypto-friendly policies lifted several crypto ETFs that have been recovering since Wednesday’s cooler inflation data. This rebound followed a sharp sell-off caused by concerns over the Fed possibly delaying rate cuts after a strong jobs report.
Outflows from Bitcoin ETFs totaled $582 million last week, according to CoinDesk, as quoted on investors.com. However, optimism surrounding Trump’s pro-crypto stance has sustained momentum. Notably, his proposed nomination of crypto-friendly lawyer Paul Atkins to head the SEC could further support the sector.
Hut8 and Meta’s AI Partnership Fuels Optimism
Bitcoin miner Hut8 (HUT - Free Report) announced plans to build a $12 billion artificial intelligence data center in Louisiana, potentially in partnership with Meta Platforms (META - Free Report) . This collaboration could strengthen the connection between blockchain technology and AI, driving further interest in crypto-related investments.
Advantages and Risks of Crypto ETFs
Crypto ETFs provide a way to hold diversified digital currencies and stocks such as Coinbase (COIN - Free Report) , Marathon Digital Holdings (MARA - Free Report) , MicroStrategy (MSTR - Free Report) and Riot Platforms (RIOT - Free Report) . Crypto ETFs offer high liquidity compared to some cryptocurrencies and exposure to Bitcoin or other coins without direct ownership risks. However, price volatility of underlying coins, regulatory hurdles remain key concerns.
Bitcoin ETF Performance and Technical Analysis
ProShares Bitcoin ETF (BITO - Free Report)
The ETF BITO tracks bitcoin futures and climbed above its 50-day moving average during a four-day winning streak. Relative Strength Rating surged to 86 from 42 in just three months, as quoted on investors.com.
VanEck Digital Transformation ETF (DAPP - Free Report)
The underlying MVIS Global Digital Assets Equity Index is a rules-based, modified capitalization-weighted, float-adjusted index intended to give investors a means of tracking the overall performance of the global digital asset segment. The ETF DAPP holds Coinbase, Block, MicroStrategy and Core Scientific. The ETF charges 51 bps in fees and yields 3.47% annually.
Amplify Transformational Data Sharing ETF (BLOK - Free Report)
Diversified portfolio with top holdings in Coinbase, Core Scientific, MicroStrategy, and CleanSpark. Recently regained its 50-day moving average. The ETF BLOK yields 5.39% annually and charges 76 bps in fees.
Bitwise Crypto Industry Innovators ETF (BITQ - Free Report)
The underlying Bitwise Crypto Innovators 30 Index measures the performance of companies involved in servicing the cryptocurrency markets, including crypto mining firms, crypto mining equipment suppliers, crypto financial services companies, or other financial institutions servicing primarily crypto-related clientele. It broke out in October but fell below the 50-day line by the year-end. Shares rebounded above the 50-day line last week, driven by renewed optimism, as quoted on investors.com.
Valkyrie Bitcoin Miners ETF (WGMI - Free Report)
WGMI holds stocks like CleanSpark, Bitfarms, Hive Blockchain and NVIDIA. Reversed gains from a 28% surge but reclaimed the 50-day line, offering another potential entry point. The ETF charges 75 bps in fees.