The world's largest cryptocurrency has been on fire since Donald Trump’s victory in the presidential election that spurred excitement about the digital currency. Bitcoin has spiked about 32% since the U.S. election on Nov. 5 and is nearing $90,000 level for the first-time buoyed by expectations that the Trump administration will be crypto-friendly and cryptocurrencies will thrive in a light regulatory environment. Bitcoin hit an all-time high of $89,599 in early trading today (read: ETFs Set to Soar on Trump's Presidential Victory).
While the rally was spread across the overall cryptocurrency ETF space, we have highlighted five ETFs that were at the forefront over the past week. These include First Trust SkyBridge Crypto Industry & Digital Economy ETF CRPT, YieldMax COIN Option Income Strategy ETF CONY, Bitwise Crypto Industry Innovators ETF BITQ, Fidelity Crypto Industry and Digital Payments ETF FDIG and Global X Blockchain & Bitcoin Strategy ETF BITS.
Trump embraced digital assets during his campaign and vowed to make the United States “the crypto capital of the planet.” Cryptocurrency stocks also experienced significant gains since the election. Coinbase COIN, which offers cryptocurrency trading on its platform, soared about 74% in the past five trading sessions. Robinhood HOOD, which also facilitates crypto trading, gained more than 35% across five days.
Companies with bitcoin on their balance sheet have also seen a boost amid the Trump trade. In particular, MicroStrategy MSTR jumped 19.4% following a massive Bitcoin purchase announcement. MicroStrategy bought about 27,200 Bitcoin for around $2.03 billion, the largest purchase by the crypto hedge-fund proxy since 2020. The news bolstered enthusiasm in cryptocurrency markets.
Investors are lining up bets in the options market that Bitcoin will pass $100,000 as soon as the end of the year, according to data from the Deribit exchange. Open interest — or outstanding contracts — for CME Group Inc. futures for Bitcoin and second-ranked Ether scaled records on Monday, a sign of growing engagement by U.S. institutional investors (read: 5 Factors to Bet on Bitcoin ETFs).
Let’s delve into the abovementioned ETFs in detail:
First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT) – Up 59%
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 economy-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 & Digital Economy ETF holds 35 stocks in its basket and charges 85 bps in fees per year from investors. It has amassed $78.3 million in its asset base and trades in an average daily volume of 45,000 shares (read: 5 Best ETFs of 2024's Top Week Courtesy Trump Win, Fed Rate Cut).
YieldMax COIN Option Income Strategy ETF (CONY) – Up 55%
YieldMax COIN Option Income Strategy ETF is an actively managed fund that seeks to generate monthly income by selling/writing call options on COIN. CONY pursues a strategy that aims to harvest compelling yields while retaining capped participation in the price gains of COIN. It charges 99 bps in annual fees and has accumulated $899.9 million in its asset base.
YieldMax COIN Option Income Strategy ETF trades in an average daily volume of 2.1 million shares.
Bitwise Crypto Industry Innovators ETF (BITQ) – Up 48.2%
Bitwise Crypto Industry Innovators ETF helps investors capitalize on the wave of innovation. It tracks the Bitwise Crypto Innovators 30 Index, which measures the performance of the 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.
Holding 30 stocks in its basket, Bitwise Crypto Industry Innovators ETF charges 85 bps in annual fees from investors and trades in an average daily volume of 73,000 shares. It has attracted $162.6 million in its asset base.
Fidelity Crypto Industry and Digital Payments ETF (FDIG) – Up 44%
Fidelity Crypto Industry and Digital Payments ETF offers exposure to companies engaged in activities related to cryptocurrency, blockchain technology and digital payments processing. It tracks the Fidelity Crypto Industry and Digital Payments Index and holds 41 stocks in its basket.
Fidelity Crypto Industry and Digital Payments ETF has accumulated $120.7 million in its asset base and trades in an average daily volume of 40,000 shares. It charges 40 bps in annual fees.
Global X Blockchain & Bitcoin Strategy ETF (BITS) – Up 39.9%
Global X Blockchain & Bitcoin Strategy ETF is an actively managed fund that seeks to capture the long-term growth potential of the blockchain and digital asset theme. It takes long positions in U.S. listed bitcoin futures contracts and invests, directly and indirectly, in companies positioned to benefit from the increased adoption of blockchain technology. Global X Blockchain & Bitcoin Strategy ETF will not invest directly in Bitcoin. It currently delivers exposure to blockchain companies through other ETFs, including the affiliated Global X Blockchain ETF.
Global X Blockchain & Bitcoin Strategy ETF has attracted $30.7 million in its asset base. It charges 65 bps in annual fees and trades in an average daily volume of 3,000 shares.
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MicroStrategy Incorporated (MSTR): Free Stock Analysis Report
Coinbase Global, Inc. (COIN): Free Stock Analysis Report
Bitwise Crypto Industry Innovators ETF (BITQ): ETF Research Reports
Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report
First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT): ETF Research Reports
Fidelity Crypto Industry and Digital Payments ETF (FDIG): ETF Research Reports
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