Bitcoin Up Triple-Digits This Year: ETFs in Focus

The cryptocurrency market has experienced a resurgence in November. In the past one month (as of Nov 10, 2023),bitcoin pricehas surged 37.4%. This notable price increase has renewed interest and excitement in the crypto space after a period of relative stagnation.

Market analysts and experts are optimistic about the crypto market’s outlook for the remaining two months of the year. This renewed bullish sentiment follows a robust recovery during the first seven months of the year, which had helped erase the disappointment of the previous year. Bitcoin is up 124% so far this year.

Factors Behind the Rally

Several key factors have contributed to the renewed rally in the cryptocurrency market:

Pause in Interest Rate Hikes: The Fed’s decision to maintain its benchmark interest rates between 5.25% and 5.5% in both its September and November Federal Open Market Committee (FOMC) meetings has had a significant impact on crypto rally. Despite inflation levels exceeding the Fed’s 2% target, recent labor market data suggesting a slowing job market has raised the possibility that the Federal Reserve may halt its ongoing monetary tightening campaign. This has instilled confidence in investors, particularly those in the cryptocurrency space, as higher interest rates typically have a dampening effect on growth sectors like technology, consumer discretionary, and cryptocurrency.

Positive Impact on Cryptocurrency: The cryptocurrency market’s response to the Federal Reserve’s decision has been positive. The pause in interest rate hikes has created a favorable environment for cryptocurrencies to flourish, as it removes a potential hurdle to their growth. The rally is not limited to Bitcoin alone. Other major cryptocurrencies, including Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE), and Binance Coin (BNB), have all experienced a resurgence in value during the same period. This broad market recovery underscores the strength of the current crypto rally.

Expectations of SEC Okaying a Bitcoin ETF

Another significant driver of investor optimism is the expectation that the U.S. Securities and Exchange Commission (SEC) is close to approving a Bitcoin exchange-traded fund (ETF). The approval of such an ETF would be a milestone for the cryptocurrency market, as it would provide traditional investors with a regulated and convenient avenue to invest in Bitcoin and other cryptocurrencies through regular stock markets. This development is expected to increase demand for cryptocurrencies and attract new investments, potentially fueling further market growth.

Continued Growth Expected

Given the current momentum and positive developments, the cryptocurrency market is poised for continued growth. Bitcoin’s impressive performance, with its price more than doubling year-to-date, indicates that the ongoing rally is likely to persist, generating increased interest and enthusiasm among investors.

ETFs to Gain

Against this backdrop, below-mentioned ETFs should be in focus for stellar gains.

Valkyrie Bitcoin Strategy ETF BTF – Up 109.9% Past Year; Up 39.6% Past Month

Valkyrie Bitcoin Strategy ETF is an actively managed ETF available through Nasdaq. It invests in bitcoin futures contracts and does not provide direct exposure to the price of bitcoin. BTF charges 95 bps in annual fees.

Hashdex Bitcoin Futures ETF DEFI – Up 109.2% Past Year; Up 35.5% Past Month

The HDEFI – Hashdex U.S. Bitcoin Futures Fund Benchmark Index is average of the closing settlement prices for the first to expire and second to expire Bitcoin Futures Contracts listed on the CME. The fund charges 90 bps in fees.

VanEck Bitcoin Strategy ETF XBTF – Up 106.8% Past Year; Up 35.6% Past Month

The Vaneck Bitcoin Strategy ETF seeks capital appreciation by investing in bitcoin futures contracts. The fund charges 66 bps in fees.

Simplify Bitcoin Strategy PLUS Income ETF MAXI – Up 103.3% Past Year; Up 35.8% Past Month

The Simplify Bitcoin Strategy PLUS Income ETF (MAXI) seeks capital gains and income by providing investors with exposure to bitcoin while simultaneously generating income by selling short-dated put or call spreads on the most liquid global equity indices. The fund charges 97 bps in fees.

ProShares Bitcoin Strategy ETF BITO – Up 99.6% Past Year; Up 36.2% Past Month

The ProShares Bitcoin Strategy ETF is bitcoin-linked ETF offering investors an opportunity to gain exposure to bitcoin returns in a convenient, liquid and transparent way. The fund charges 95 bps in fees.

(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)

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ProShares Bitcoin Strategy ETF (BITO): ETF Research Reports

Valkyrie Bitcoin and Ether Str (BTF): ETF Research Reports

VanEck Bitcoin Strategy ETF (XBTF): ETF Research Reports

Hashdex Bitcoin Futures ETF (DEFI): ETF Research Reports

Simplify Bitcoin Strategy PLUS Income ETF (MAXI): ETF Research Reports

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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.