Ethereum hits a record: How much $1,000 would be worth today if you had invested earlier

Ethereum hits a record: How much $1,000 would be worth today if you had invested earlier

Benzinga

It seems like a lot of people and companies are trying to brand themselves as “futurists” these days, but which ones really are poised to march fiercely into the great unknown? Just as importantly; what are the organizations that have the potential to be undervalued or still have room for explosive growth, and could provide a significant and accessible opportunity for investors without exposure to a large degree of undue risk? A Possible Sweet Spot In The Market The Nasdaq Stock Exchange is probably one of the best places to hunt for clues to the future, and few organizations know the future better than those in the Nasdaq-100. When a company makes it to the top 100 within the Nasdaq Composite, it’s a really big deal. These are the companies that are generally considered to be the top leaders of innovation and progress in the world, but what if there was a way to invest in these game-changing organizations before they got to where they are now? Say hello to the QQQN VictoryShares Nasdaq Next 50 ETF, a composite ETF of the Nasdaq Q-50 Index, the next generation of innovators. Where the Nasdaq-100 represents the largest 100 securities by market cap, the QQQN (NASDAQ: QQQN) tracks the next 50 securities by market cap, those companies that are not yet in the 100, but are poised to take those slots away from the incumbents and build the future. These companies present an interesting investment opportunity, to be able to get in on the next big thing before the headlines praise the latest member of the Nasdaq-100. Riding The Next Wave Since 2007, 110 companies that were in the Nasdaq Q-50 have moved up into the Nasdaq-100, on average gaining 76.2% in the year prior, and another 18.3% in the year after their graduation, as of December 31, 20201. The QQQN may help investors catch these key innovators early in their cycle of market potential and value. With highly innovative, forward-thinking companies like Etsy (NASDAQ: ETSY), Zscaler (NASDAQ: ZS), DraftKings (NASDAQ: DKNG), and others present, QQQN may be a solid option for investors interested in stancing themselves for a bullish technology outlook at the cutting-edge of the future, especially for those of us who don’t have a Delorean and a Flux Capacitor lying around. 1/ Source: Nasdaq as of 12/31/2020; Individual stock performance was not considered when choosing the companies highlighted. Nothing in this statement should be construed as a recommendation of individual holdings or market sectors, but as an illustration of broader themes. In the case of the 12-month statistics, names added in 2020 were excluded from averages and medians. Carefully consider a fund’s investment objectives, risks, charges, and expenses before investing. To obtain a prospectus or summary prospectus containing this and other important information, visit www.vcm.com/prospectus. Read it carefully before investing. Investing involves risk, including the potential loss of principal. In addition to the normal risks associated with investing, investments in small- and mid-cap companies and narrowly focused investments typically exhibit higher volatility. International investing may involve risk of capital loss from unfavorable fluctuations in currency values, differences in generally accepted accounting principles, or economic or political instability. Technology companies are often subject to severe competition and product obsolescence. The Fund has the same risks as the underlying securities traded on the exchange throughout the day. Redemptions are limited, and commissions are often charged on each trade. ETFs may trade at a premium or discount to their net asset value. The Fund is not actively managed and may be affected by a general decline in market segments related to the Index. The Fund invests in securities included in, or representative of securities included in, the Index, regardless of their investment merits. The performance of the Fund may diverge from that of the Index. The Nasdaq Q-50 Index is a market-capitalization-weighted index designed to track the performance of companies that are next-eligible for inclusion into the Nasdaq-100 Index. The Index is comprised of 50 securities and reflects companies across major industry groups, except financial companies. Nothing in this illustration should be construed as a recommendation of individual holdings or market sectors, but as an illustration of broader themes. VictoryShares ETFs are distributed by Foreside Fund Services, LLC. Victory Capital Management Inc. is the adviser to the VictoryShares ETFs. Victory Capital is not affiliated with Foreside Fund Services, LLC. Nasdaq is a registered trademark of Nasdaq, Inc. and its affiliates (together, “Nasdaq”) and is licensed for use by Victory Capital. The product(s) are not issued, endorsed, sold, or promoted by Nasdaq. Nasdaq makes no warranties as to the legality or suitability of and bears no liability for, the product(s). Top 10 Holdings as of 3/31/2021 Ticker Weight Roku, Inc. Class A ROKU 3.49% CrowdStrike Holdings, Inc. Class A CRWD 3.38% Fortinet, Inc. FTNT 2.96% Old Dominion Freight Line, Inc. ODFL 2.77% Trade Desk, Inc. Class A TTD 2.73% Zebra Technologies Corporation Class A ZBRA 2.55% ViacomCBS Inc. Class B VIAC 2.52% Etsy, Inc. ETSY 2.50% Garmin Ltd. GRMN 2.49% Liberty Broadband Corp. Class C LBRDK 2.46% Holdings are as of the date noted and subject to change without notice. ©2021 Victory Capital Management Inc. 20210420-1607005 See more from BenzingaClick here for options trades from BenzingaWhat ESG Investing Is, And Why It MattersGlobal Semiconductor Crisis: A Trader’s Opportunity With This Popular ETF© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Digital currency ether hits a record high, stealing bitcoin’s limelight

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Jack Taylor | Getty Images

LONDON — Ether hit an all-time high Thursday as bitcoin’s dominance of the cryptocurrency market declined. The world’s second-largest digital currency by market value surged to a fresh record of $2,800 on Thursday morning, according to data from Coin Metrics. Bitcoin, the top digital coin, was slightly lower at a price of $54,471. The move comes after the European Investment Bank announced Wednesday that it had issued its first ever digital bond on the Ethereum blockchain, ether’s underlying network. This led to speculation that the currency is gaining traction among mainstream financial institutions.

Most major cryptocurrencies were trading higher Thursday, boosted by ether’s rise. Bitcoin, the most valuable digital coin, is down about 16% from its all-time high of almost $65,000 earlier this month. It has still had a stunning rally, though, climbing almost 90% so far this year, on the back of increased interest from institutional investors and corporate buyers like Tesla. At the same time, some investors have warned of froth in the crypto market. Dogecoin, a meme-inspired digital token, rallied Wednesday after supportive tweets from celebrities like Elon Musk and Mark Cuban. And plenty of other “altcoins,” or alternative currencies, have also rallied this year. This led to bitcoin’s dominance of the crypto market falling below 50% last week for the first time since August 2018, according to CoinMarketCap.

The first time bitcoin’s share of the market sank below that level was in 2017, before a huge slump in crypto prices now referred to as a “crypto winter.” But bitcoin bulls contend things are different this time, as the rally is being driven by institutional demand rather than retail investors. “There’s just so much hype from the institutions coming in,” Carol Alexander, professor at the University of Sussex Business School, told CNBC last week. “Bitcoin is almost like a sort reference point, the numeraire of crypto. I think there’s going to be sustained demand as institutional investors become more confident about the market.” “Having said that, on the more retail side that used to be in bitcoin, it’s not cool anymore,” Alexander added. “Everyone knows about bitcoin and we want things to talk about. We don’t want to talk about Covid all the time. So much of this is about market psychology. We’ve been shut inside and haven’t had any news to talk about.” Skeptics of cryptocurrencies say that bitcoin and other digital coins are a speculative bubble. Stephen Isaacs, chairman of the investment committee at financial consultants Alvine Capital, told CNBC earlier this month that he thinks bitcoin is in a “bubble” that will burst, citing risks around regulation and climate change.

Ethereum vs. bitcoin

JP Morgan explains why Ethereum is outperforming Bitcoin

Multinational bank and asset manager JP Morgan has published a note to investors stating that Ethereum is outperforming Bitcoin due to improvements in liquidity and a higher turnover on the public Ethereum blockchain.

The comments were made after Ethereum printed a record high of $2,750 on Tuesday, while Bitcoin struggled to gain momentum at $55,000, which is $10,000 below its respective all-time high.

“Both BTC and ETH experienced a comparable liquidity shock earlier this month which triggered a comparable de-levering event of their respective derivatives markets in subsequent days.” The note began.

“But ETH spot depth has recovered quicker and if anything liquidity conditions on some exchanges is better than prior to that event.

“Higher turnover on the ETH public blockchain means a noticeably higher fraction of those tokens can be considered highly liquid, further blunting the impacts of futures liquidations.

ETHUSD chart by TradingView

“This suggests that ETH valuations may be less dependent on levered demand than BTC, a technical but occasionally important tailwind moving forward.”

At the time of writing Ethereum is trading at $2,700 while Bitcoin is back below $55,000 following an overnight rejection from the $55,800 level of resistance.

eToro market analyst Simon Peters has attributed the recent rise in Ethereum to a wave of demand from institutional investors.

He said: “Underlying this is demand from institutional investors. While they may now have some exposure to Bitcoin, institutions are now diversifying their exposure and Ethereum is the natural next pick, and that leaves the second biggest cryptoasset by market cap well placed to benefit further.”

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