Crypto Stock to benefit from Grayscale's Crypto ETF win
We have seen across multiple crypto stocks surge after a federal appeals court sided with Grayscale Investments which is hoping to launch the first bitcoin exchange-traded fund over the objections of the Securities and Exchange Commission.
This decision in favor of Grayscale Investments is significant and important for the crypto industry. This major win would push for more and wider companies and organization to adopt crypto for digital assets.
U.S. is in the midst of crackdown of some bad hats in the crypto space so this is a big blow to SEC. I am more interested to see which crypto stocks would continue to benefit from this new development.
In this article, I would like to share the significance of the blockchain ETFs, what it would mean to investors and traders interested in crypto investment.
I will be sharing crypto stocks which I would be monitoring and think have great potential.
Understanding Crypto ETF
An Exchange-Traded Fund (ETF) is a type of investment fund that is traded on stock exchanges, much like a stock. It pools together various assets, such as stocks, bonds, or commodities, and aims to replicate the performance of a specific index or sector.
In the case of a Blockchain ETF, the fund's holdings typically consist of companies that are directly involved in blockchain technology, cryptocurrency, or related applications.
ETFs are important because it increases the number of people who can invest in crypto by providing a more traditional and regulated pathway.
There is potentially billions of dollars of capital sitting on the sidelines that would trade bitcoin if it could be traded through familiar stock exchanges.
Diversification and Risk Mitigation
One of the primary advantages of investing in a Blockchain ETF is diversification. Blockchain technology's potential extends across numerous industries, from finance and logistics to healthcare and identity management.
By investing in a Blockchain ETF, individuals can gain exposure to a wide array of companies that are at the forefront of utilizing this technology.
This diversification helps mitigate risks associated with investing in individual companies, as the performance of the ETF is spread across multiple holdings.
Access to a Transformative Technology
Blockchain technology, with its decentralized and secure nature, has the potential to disrupt traditional business models and reshape industries.
For investors seeking exposure to this transformative technology without delving into the complexities of individual cryptocurrencies or blockchain companies, a Blockchain ETF offers a convenient solution.
It allows investors to participate in the growth of blockchain-related industries without the need for specialized knowledge or the inherent volatility associated with cryptocurrencies.
Liquidity and Accessibility
Blockchain ETFs, like other traditional ETFs, are traded on stock exchanges, providing investors with a high level of liquidity.
This means that investors can buy or sell shares of the ETF throughout the trading day, providing flexibility in managing their investment portfolios.
Additionally, Blockchain ETFs are accessible to a wide range of investors, from individuals to institutional players, making it easier for anyone interested in blockchain technology to participate in its growth.
Expert Management and Research
A well-structured Blockchain ETF is managed by financial professionals who conduct extensive research to identify promising blockchain-related companies.
These professionals analyze industry trends, company financials, and other relevant factors to construct a portfolio that has the potential to deliver solid returns over time.
This expertise can be especially valuable for investors who may not have the time or knowledge to research individual companies within the blockchain sector.
Potential for Growth
As blockchain technology continues to evolve and find applications in various sectors, the potential for growth remains substantial.
While the technology is still relatively young and its full impact is yet to be realized, investing in a Blockchain ETF can position investors to capitalize on its future growth.
Whether blockchain finds widespread adoption in supply chain management, finance, healthcare, or beyond, a well-chosen Blockchain ETF has the potential to capture a slice of this expanding market.
Stocks Poised to Benefit from Blockchain ETF
$Coinbase Global, Inc.(COIN)$ has been seen by many investors in crypto assets as their choice to safekeep or transact their assets. This is an important role as custodian of choice which the assurance of protection of client assets is there.
They are also committed to share surveillance with listing exchanges, this further show their commitment to support and augment the compliance efforts.
For example, BlackRock which is a $8.5 trillion asset manager, they have identified Coinbase as the custodian of coins in their spot Bitcoin ETF.
BlackRock product have not been approved in the U.S. yet. This ETF would give investors indirect Bitcoin exposure without having to hold BTC themselves.
If we take a step back, now that Grayscale have gained the first win for a crypto (Blockchain) ETF, it will not be long before the other companies who have applied for spot Bitcoin ETF, getting approved.
This would mean good businesses for Coinbase. I would foresee more companies identifying Coinbase as custodian of coins for their spot Bitcoin ETF.
From the Moving Average Convergence Divergence (MACD), we can see that the MACD line (blue line) is going to cross above the signal line (red line).
This suggest a potential bullish trend coming.
Summary
Even though we can see that there are many benefits of a crypto ETFs, but the SEC seemed unwilling to listen to the facts, for example spot and futures bitcoin markets are 99% correlated.
They are still using concerns which do not make sense to reject 100% of spot market ETF filings. There are actually some major overhanging questions as to whether the SEC has proper jurisdiction over digital assets.
In the much-watched Lummis-Gillibrand “Responsible Financial Innovation” bill moving through Congress, there are some discussion being contested on crypto’s “commodity-like” attributes. And look forward to U.S. Commodity Futures Trading Commission (CFTC) raised up as a regulator.
In the meantime, we should watch the development closely. There will be other opportunities in stronger crypto stocks like $MicroStrategy(MSTR)$ $Marathon Digital Holdings Inc(MARA)$ as well.
Appreciate if you could share your thoughts in the comment section whether you think Coinbase would be able to benefit from more Blockchain ETF win and successful listed.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
pretty sad the market has not crushed Coin yet.....it should have gone to mid $70s for me to buy back my shares. I sold in $112 and need to buy back now.
expecting 200 billion market cap in 2024 and about 500 billion market cap in 2025. Good luck all....a must have for your IRA
even though it has some equal attributes which traditional currency possess. the identity of such digital still fright people
$220 target for 2023 guys. Just buy and forget about the short term $5 swing.
The reason why people could not raise much attention into BITCOIN is that the market surround is deeply voilitle.
Those people who wanna to pursuit high rewards should consider calmly. NEVER EVER be rush
looking forward to buy 3000 coin on todays tech flush. Let them crush it nice.
This will ultimately sit at or near its 50DMA at next call. Goodluck 🤙
Coinbase needs to get other income producing sectors that is legal and secure steady and profitable without any legal fees associated with them. Just be a broker and deny liability of the products; only responsible for the transactions and be fast with it.
WIll go down, as I just bought it. This process never fails
Well hope BTC can breakthrough 30,000 soon.