BRAZIL - 2021/09/06: In this photo illustration the Ethereum logo seen displayed on a smartphone. ... [+] (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)



SOPA Images/LightRocket via Getty Images

Bitcoin prices saw considerable volatility over the last week, falling from levels of almost $53,000 on Monday, September 6, to levels of under $45,000 currently, marking a decline of almost 15%. In fact, the cryptocurrency fell by almost 10% within an hour of trading last Tuesday. Other cryptocurrencies such as Ethereum and Dogecoin also saw meaningful declines. The sell-off was surprising as it came just as El Salvador adopted Bitcoin as legal tender, apparently a positive development for the broader cryptocurrency space. However, one possible explanation for the decline could be a broader sell-off across risky asset classes over the last week, with the S&P 500 down by almost 2%.

Investors who want to play the long-term upside in cryptocurrency adoption, without exposing themselves to this sort of volatility in crypto pricing, should take a look at our indicative theme on Cryptocurrency Stocks which includes semiconductors, payments, and brokerage companies that have exposure to the cryptocurrency value chain. The theme has gained roughly 25% year-to-date, compared to the S&P 500 which is up by about 19% over the same period. Within our theme, graphics processor major Nvidia has fared the best, with its stock rising by 72% year-to-date. On the other hand, exchange major CME Group has been the worst performer in our theme, rising by just about 4% over the same period.

[8/23/2021] With Bitcoin Back At $50K, Consider These Crypto Stocks

Bitcoin prices have been on a wild ride this year. While prices for the bellwether cryptocurrency more than doubled to levels of around $65,000 between early January and mid-April 2021, driven by higher institutional interest, prices fell back to levels of just under $30,000 as of mid-July, due to China’s crackdown on Bitcoin trading and the U.S. Federal Reserve’s increasingly hawkish stance. However, the currency has recovered swiftly from the recent lows, rising by about 65% since July 20th, and trades at about $50,000 currently. The recent recovery is apparently driven by factors including short-covering, as well as signs that the U.S. SEC was increasingly open to allowing Bitcoin exchange-traded funds.

Investors who want to play the long-term gains in cryptos, without exposing themselves to the volatility and boom and bust cycles in cryptocurrency pricing, should take a look at our indicative theme on Cryptocurrency Stocks which includes semiconductors, payments, and brokerage companies that have exposure to the cryptocurrency value chain. The theme has gained roughly 24% year-to-date, compared to the S&P 500 which is up by about 19% over the same period. Within our theme, graphics processor major Nvidia has fared the best, with its stock rising by 59% year-to-date, driven by strong demand for its chips as well as its recent stock split. On the other side, exchange major CME Group has been the worst performer in our theme, rising by just about 9% over the same period.

[7/1/2021] Bitcoin Prices Crash

Bitcoin prices have crashed from levels of around $62,000 in mid-April to just about $34,000 as of Wednesday. The crypto bear market appears to be driven by a host of factors, including China’s crackdown on Bitcoin trading and mining and Tesla’s unexpected reversal of its decision on accepting the digital currency as payment for its cars. Moreover, the U.S. Federal Reserve has turned increasingly hawkish following its mid-June meeting indicating that it could start hiking interest rates from 2023, rather than 2024. This is also likely putting pressure on non-productive assets such as cryptocurrency.

Now, although the market sentiment for cryptos, in general, is clearly bearish, cryptocurrencies have the potential to be one of the most disruptive technologies of our time. Moreover, with increasing institutional interest, they appear to be here to stay as an asset class. Investors who want to play the long-term gains in cryptos, without exposing themselves to the volatility and boom and bust cycles in cryptocurrency pricing, should take a look at our indicative theme on Cryptocurrency Stocks which includes semiconductors, payments, and brokerage companies that have exposure to the cryptocurrency value chain. The theme has gained roughly 22% year-to-date, compared to the Nasdaq-100, which has returned about 15% over the same period. Within our theme, graphics processor major Nvidia has fared the best, with its stock rising by 53% year-to-date, driven by strong demand for its chips as well as its planned stock split. On the other side, processor major Advanced Micro Devices has been the worst performer, with its stock up by just about 2% this year.

[4/5/2021] Crypto Stocks To Watch

Cryptocurrency prices have surged this year. Crypto bellwether Bitcoin has almost doubled year-to-date to levels of about $60k as of the end of last week, as more institutional investors warm up to the currency, with companies such as Tesla also indicating that they will accept bitcoin payments from customers. However, investing in Bitcoin and other cryptos is risky at current levels. With Covid-19 cases on the decline and vaccination rates in the U.S. rising, the economic outlook is improving. Bond yields are also trending higher, with the yield on the 10-year Treasury note rising from around 1% earlier this year to close to 1.70% currently. Considering this, investors are moving funds back to real-economy sectors, and it’s likely that non-productive assets such as Bitcoin will eventually be impacted. Our indicative theme on Cryptocurrency Stocks could be a safer way to play the long-term upside from cryptocurrencies, without taking a position in individual currencies. The theme, which includes semiconductor, payments, and brokerage companies that have exposure to the cryptocurrency value chain, is up by about 122% since 12/31/2019, compared to the S&P 500 which is up by about 24%. Here is a look at the recent developments for some of the stocks in our theme.

PayPal, a large online payments processor, allows customers to buy, hold, and sell cryptocurrencies. The company has taken this a step further, launching its “Checkout with Crypto” service last week, enabling U.S. customers to use their crypto holdings to pay at millions of online merchants worldwide.

Nvidia indicated a few weeks ago, that it would be launching a GPU that was dedicated to mining cryptocurrencies. Nvidia has seen gaming GPU shortages in the past, as its gaming processors were being used to mine cryptocurrency. The move should let the company better target the crypto mining space, while potentially alleviating GPU shortages for gaming.

CME Group, a derivatives exchange, plans to launch new Micro Bitcoin futures from early May, subject to regulatory approval. The smaller-sized futures contracts are a tenth of the size of one Bitcoin and will be targeted at institutions and sophisticated traders.

[3/16/2021] Crypto Stocks To Watch As Bitcoin Nears $55k

Cryptocurrency prices have surged this year, with Bitcoin now up by around 90% since early January, trading at levels of around $55k currently. However, Bitcoin looks quite risky at current levels due to a couple of factors. With Covid-19 cases on the decline, the economic outlook is improving and bond yields are also on the rise. Considering this, investors are likely to start moving funds back to real-economy sectors, and non-productive assets such as Bitcoin, which rallied big through the pandemic, could be impacted. Our indicative theme on Cryptocurrency Stocks could be a safer way to play the long-term upside from cryptocurrencies, without taking a position in individual currencies. The theme, which includes semiconductor, payments, and brokerage companies that have exposure to the cryptocurrency value chain, is up by about 124% since 12/31/2019, compared to the S&P 500 which is up by about 22%. Year-to-date, the theme is up by 4%, compared to the S&P 500 which is up around 5%. Within our theme, digital payments player Square has been the strongest performer, rising by 287% since the end of 2019, while exchange major CME Group has been the worst performer in our theme, rising by just about 4% over the same period.

[2/18/2021] Which Stocks Should You Buy As Bitcoin Hits $50k?

Cryptocurrency have continued their surge this year, driven by retail and institutional interest. While the crypto market bellwether Bitcoin has soared 5x over the last 12 months and by almost 80% year-to-date, lesser-known crypto Dogecoin is up by over 10x year-to-date. To be sure, these currencies remain a risky investment, given their relative lack of utility and extremely high volatility. Our indicative theme on Cryptocurrency Stocks – which includes semiconductors, payments, and brokerage companies that have exposure to the cryptocurrency value chain - could be a safer way to play the crypto space, without taking a position in individual currencies. The theme has returned about 151% since the end of 2019, compared to about 22% for the S&P 500. The theme is also up 14% year-to-date, versus about 5% for the S&P 500. Payments player Square remains the strongest performer in our theme, rising by over 330% since the end of 2019, driven by its Bitcoin exposure, and also by an increasing preference for digital payments among consumers and businesses. On the other side, financial exchange major CME Group has been the worst performer in our theme, down by about -5% over the same period.