Trade Radar | Institutional Craze For Cryptocurrency? Here Are 1 Crypto Stock And 2 Key ETFs to Watch
Another Weekly Session with Loui, M+ Online Head of Research.
Bitcoin trading near 1Y high. Recently, Bitcoin - the world’s largest cryptocurrency, managed to trade towards the year-to-date high of USD31458 level and maintained above USD30000 level at the time of writing.
Why did Bitcoin rally? BlackRock, the world’s largest asset manager, is potentially issuing a bitcoin ETF. Its filing last week to the US SEC to launch iShares Bitcoin Trust ETF, would appoint Coinbase Custody as its custodian and will provide an avenue for institutional investors to get exposure into the cryptocurrency. If SEC approves, this will be the first spot bitcoin ETF.
Significant interests from other institutions. Meanwhile, EDX Markets - a crypto exchange that is backed by Charles Schwab, Fidelity and Citadel Securities announced recently that it will allow trading on 4 cryptocurrencies, namely (i) Bitcoin, (ii) Ether, (iii) Litecoin and (iv) Bitcoin cash.
Rekindling investors’ attention... The actions above by the institutional firms may be timely to revive the interest in cryptocurrencies, which have been quiet following a number of operation meltdowns, including the abrupt closure of FTX exchange last year.
…despite SEC crypto crackdown. All of these new developments have come in after the crackdown earlier this month. SEC sued Coinbase Global and Binance, both being accused of failing to register their exchanges with the SEC, but both of the companies denied the allegations.
What are the reactions from the investment community?
Kate Laurence, general partner of Bloccelerate VC
"The likes of BlackRock, Charles Schwab, Fidelity and Citadel throwing their hats into the crypto ring is hugely significant because it shows that institutions are very serious about the space - despite the recent regulatory crackdown."
Doug Schwenk, CEO of Digital Asset Research
"The SEC lawsuit has created opportunities for robust, regulated players, so I'm cautiously optimistic that this BlackRock event will have some sustainability"
Do you think this Bitcoin uptrend can sustain? Traders may use the opportunity to take advantage of the new developments within the cryptocurrency space via the following stock and ETFs.
| US Stock | |
| COIN | Coinbase Global Inc |
| US ETFs | |
| BITO | US ProShares Bitcoin Strategy ETF |
| BITI | US ProShares Short Bitcoin Strategy ETF |
More about Loui:
Loui Low leads a team of analysts to perform equity and economic research and to provide investment advisory services to the organization's sales team, fund manager and retail fraternity. He has more than 10 years of experience in the stockbroking industry.
He graduated with a Bachelor of Science in Statistics from University of Malaya. He also holds an STA Diploma and is a member of the Society of Technical Analysts (MSTA) United Kingdom.
More about the Trade Radar:
Trade Radar is a weekly-updated section, featuring Loui's latest insights into market trends and hot topics. Traders may find some trading inspiration from Loui's views.
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