The fall of crypto stocks in the last month seems to have abated some as bitcoin, the most popular cryptocurrency, has leveled out above $42,500 for the time being. Prices rose from $35,000 to over $45,000 in the last week before settling slightly above $42,500, with some analysts pointing to an increase in U.S. institutional demand in the dip, reports CoinDesk.
As bitcoin stabilized and bounced back from its revised floor of $30,000, moving above its 50-day moving average of $42,500 once more, institutional investors continued to allocate into the volatile but popular cryptocurrency. It’s a trend that reflects the continued growth in interest by more traditional companies as crypto adoption continues to expand.
“For the third week in a row, institutional participants have been investing in crypto funds, according to CoinShares. On the intraday chart, you can see purchases at the close of the American session, which clearly demonstrate the interest of the institutionalists in this region,” Alex Kuptsikevich, FxPro analyst, wrote in an email to CoinDesk.
For investors who are interested in investing in the innovation of the crypto economy and its increasing adoption by institutional participants but do not want the risk of direct exposure, the Bitwise Crypto Industry Innovators ETF (BITQ) could be a good solution. BITQ offers investment into some of the largest companies within crypto in a variety of segments.
BITQ tracks the Bitwise Crypto Innovators 30 Index, an index with at least 85% allocation into companies that are cryptocurrency exchanges carrying bitcoin and other cryptocurrencies, crypto miners, mining equipment companies, and service providers. The remaining 15% is allocated to large-cap support companies with at least one major part of their businesses dedicated to crypto.
BITQ carries crypto companies such as Silvergate Capital (SI), a bank that provides services for crypto exchanges, at 10.98%; Coinbase Global Inc (COIN), a popular crypto exchange, at 9.12%; and crypto mining companies such as Hut 8 Mining (HUT CN) at 5.40%.
The fund has an expense ratio of 0.85% and net assets of $117 million.
For more news, information, and strategy, visit the Crypto Channel.
