Wall Street rallied on Tuesday after logging in the worst week since March 2020. The rally was driven by bargain hunting as most investors flocked in to take advantage of equity weakness and extreme oversold conditions. The end-of-quarter rebalancing activity possibly added to the stength.
The most beaten-down growth and technology stocks were the biggest gainers on the day. Global X Blockchain ETF BKCH jumped 8.2%. This was followed by VanEck Vectors Digital Transformation ETF DAPP, iShares Blockchain and Tech ETF IBLC, Bitwise Crypto Industry Innovators ETF BITQ and ARK Next Generation Internet ETF ARKW, with gains of nearly 6% each.
Americans are grappling with a surge in the cost of gas, food and shelter. Additionally, concerns over slowing economic growth and a more aggressive Federal Reserve prevailed (read: Time for Cash-Like ETFs?).
Many investors bet that the worst may be over for now, at least until the important economic data and corporate earnings roll in. President Biden has shown confidence and reiterated that he doesn’t see a recession as inevitable. Federal Reserve Bank of St. Louis president, James Bullard, also said the economy appears on track for more expansion this year. Further, many strategists said that investors may see value in companies whose shares have been badly beaten down this year and thus could be a compelling opportunity for buying.
Let’s dig into the detail of the above-mentioned ETFs:
Global X Blockchain ETF (BKCH)
Global X Blockchain ETF seeks to invest in companies positioned to benefit from the increased adoption of blockchain technology, including companies in digital asset mining, blockchain & digital asset transactions, blockchain applications, blockchain & digital asset hardware, and blockchain & digital asset integration. Global X Blockchain ETF holds 25 stocks in its basket with a double-digit allocation to the top firm.
Global X Blockchain ETF has gathered $48.2 million in its asset base and trades in an average daily volume of 161,000 shares. It charges 50 bps in annual fees.
VanEck Vectors Digital Transformation ETF (DAPP)
VanEck Vectors Digital Transformation ETF aims to offer exposure to companies that are at the forefront of the digital asset transformation, such as digital asset exchanges, payment gateways, digital asset mining operations, software services, equipment and technology or services to the digital asset operations, digital asset infrastructure businesses or companies facilitating commerce with the use of digital assets. VanEck Vectors Digital Transformation ETF tracks the MVIS Global Digital Assets Equity Index and holds 25 securities in its basket.
VanEck Vectors Digital Transformation ETF charges 50 bps in annual fees and trades in an average daily volume of 1285,000. DAPP has accumulated $23.6 million in its asset base.
iShares Blockchain and Tech ETF (IBLC)
iShares Blockchain and Tech ETF seeks exposure to a wide variety of companies that are involved in the development, innovation, and utilization of blockchain and crypto technologies. It follows the NYSE FactSet Global Blockchain Technologies Index and holds 33 stocks in its basket (read: 6 Reasons Why Tech ETFs May Rebound Soon).
NYSE FactSet Global Blockchain Technologies Index has gathered $4 million in its asset base and charges 47 bps in annual fees. It trades in volume of 9,000 shares per day on average.
Bitwise Crypto Industry Innovators ETF (BITQ)
Bitwise Crypto Industry Innovators ETF offers exposure to the companies leading the new crypto economy. 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 31 stocks in its basket, Bitwise Crypto Industry Innovators ETF is concentrated on the top three firms with nearly double-digit exposure each. It charges 85 bps in annual fees from investors and trades in an average daily volume of 149,000 shares. Bitwise Crypto Industry Innovators ETF has attracted $49.7 million in its asset base.
ARK Next Generation Internet ETF (ARKW)
ARK Next Generation Internet ETF is an actively managed fund focusing on companies expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund holds 36 stocks in its basket, with none accounting for more than 9.3% of the assets (read: Cathie Wood Sees a Fast Recovery in Tech ETFs: Is It Possible?).
ARK Next Generation Internet ETF has amassed $1.2 billion in its asset base and charges 83 bps in annual fees. It trades in an average daily volume of 1.7 million shares.
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