Bitcoin Breaks $105,000 Amid Political Promises
Crypto ETFs See Gains on Policy Expectations
Bitcoin exceeded $105,000 on Friday, signaling a new high this year. This increase follows reports indicating that President-elect Donald Trump may consider cryptocurrencies a “national priority,” sparking renewed interest in crypto exchange-traded funds (ETFs), according to investors.com.
The anticipation of crypto-friendly policies under Trump has buoyed several crypto ETFs, which began recovering after a dip attributed to recent inflation data. This recovery came after a brief sell-off driven by worries that the Federal Reserve might delay interest rate cuts following a strong jobs report.
Last week, Bitcoin ETFs experienced $582 million in outflows, as noted by CoinDesk. Nonetheless, the optimism surrounding Trump’s potential pro-crypto approach has kept the market vibrant. His recommended nomination of crypto-advocate Paul Atkins to lead the SEC could further boost the sector.
Hut8 and Meta Team Up to Enhance Innovation
Bitcoin mining company Hut8 (HUT) announced its plan to construct a $12 billion artificial intelligence data center in Louisiana, likely in collaboration with Meta Platforms (META). This partnership could bolster the relationship between blockchain technology and artificial intelligence, thereby increasing interest in crypto investments.
Examining the Pros and Cons of Crypto ETFs
Crypto ETFs provide a method to invest in a diverse range of digital currencies and stocks, including Coinbase (COIN), Marathon Digital Holdings (MARA), MicroStrategy (MSTR), and Riot Platforms (RIOT). These ETFs offer greater liquidity than some cryptocurrencies and allow exposure to Bitcoin and other coins without the risks associated with direct ownership. However, investor concerns regarding the volatility of prices and regulatory challenges persist.
Analyzing Bitcoin ETFs: Performance and Trends
ProShares Bitcoin ETF (BITO)
The ETF BITO, which follows Bitcoin futures, has recently surpassed its 50-day moving average during a four-day winning streak. The Relative Strength Rating jumped from 42 to 86 within three months, as reported by investors.com.
VanEck Digital Transformation ETF (DAPP)
This ETF is based on the MVIS Global Digital Assets Equity Index, which is designed to track the performance of the global digital asset market. DAPP includes holdings in companies like Coinbase, Block, MicroStrategy, and Core Scientific. The fund incurs 51 basis points in fees and boasts an annual yield of 3.47%.
Amplify Transformational Data Sharing ETF (BLOK)
BLOK features a diversified portfolio with significant stakes in Coinbase, Core Scientific, MicroStrategy, and CleanSpark. It has recently regained its 50-day moving average and yields an annual return of 5.39%, with 76 basis points in fees.
Bitwise Crypto Industry Innovators ETF (BITQ)
The Bitwise Crypto Innovators 30 Index tracks companies serving the cryptocurrency market, including crypto miners and financial services. After a breakout in October, BITQ dropped below its 50-day average by year-end but rebounded last week due to renewed optimism, according to investors.com.
Valkyrie Bitcoin Miners ETF (WGMI)
WGMI includes stocks such as CleanSpark, Bitfarms, Hive Blockchain, and NVIDIA. It reversed gains from a significant surge but has recently reclaimed its 50-day line, presenting potential entry opportunities for investors. The ETF charges 75 basis points in fees.
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Free Stock Analysis Reports:
MicroStrategy Incorporated (MSTR)
Marathon Digital Holdings, Inc. (MARA)
Riot Platforms, Inc. (RIOT)
Amplify Transformational Data Sharing ETF (BLOK)
Coinbase Global, Inc. (COIN)
VanEck Digital Transformation ETF (DAPP)
Bitwise Crypto Industry Innovators ETF (BITQ)
Hut 8 Corp. (HUT)
Meta Platforms, Inc. (META)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
