Breaking down the $BLOK – June 20, 2023
This is Scott with your Chart of the Day. I want to take a look at the Amplify Transformational Data Sharing ETF ( NYSEARCA: BLOK ).
Now, I think I have mentioned this one in the past, but it is a great vehicle if you want Blockchain exposure. They have a bunch of crypto miners, but they also have stocks like Alibaba ( NYSE: BABA ), and Walmart ( NYSE: WMT ) kind of mixed in.
So you have got a good swath of the market, in terms of Bitcoin miners. Square ( NYSE: SQ ) is in there, PayPal ( NASDAQ: PYPL ), a little ThinTech, and it also has some retailers just to balance it out.
This is one that I recommend if anyone wants crypto exposure or Bitcoin exposure, Bitcoin mining exposure, to be more specific, but doesn’t what to deal with the volatility that some of the crypto miners have.
Now, that volatility can be a gift, like Marathon Digital ( NASDAQ: MARA ), it’s up 17 percent today. You could say that that is a gift of upside volatility. But this stock could, technically, from this high here, pull back 10 percent or so just to backtest this breakout and still not break that trend.
Maybe you don’t want all of that volatility but you still want a little exposure. And so that is where the BLOK ETF ( NYSEARCA: BLOK ) can really come in handy because it gives you that exposure, but it also is a little more manageable for anyone who is more of a swing trader, passive investor, but still wants to trade with a little size.
As you can see here, we have a base breakout of the BLOK ETF ( NYSEARCA: BLOK ). This is coming on news that a crypto exchange, backed by some pretty big normal institutional names like Charles Schwab ( NYSE: SCHW ), Fidelity ( NYSE: FNF ), and Citadel, has launched, and that is EDX Markets ( EDX ).
They have officially launched for trading today and they are going to be allowing trading of Bitcoin (BTC/USD ), Ether ( ETH/USD ), Litecoin ( LTC/USD ), and for some reason, Bitcoin Cash ( BCH/USD ).
And so this is big for Crypto because we have heard, over the last couple of days and weeks, coin is dead, it’s over. They are going after Binance ( BNB/USD ). Sorry Crypto bros, your fun is done and now it is all going to go to zero.
What we are seeing is, while exchanges like Binance ( BNB/USD ), FTX ( FTT-USD ), and some other players get investigated by the SEC and other regulators, what we are finding is, institutional players, the people who are already in some of the markets, want a little of this trillion dollar crypto asset class.
And so that is what I am seeing under the surface, while everyone is getting sued for having anything crypto to do with them, the normal institutional players are grabbing a piece of that pie. We are seeing that play out today. And that is what we need, in my opinion, for crypto to survive.
We need institutional players like Fidelity ( NYSE: FNF ) to really say, look, this is an asset class. it has value, and here’s a safe way to trade it. And that is what we are getting today with the launch of EDX Markets ( EDX ).
Now, I am not a proponent of EDX ( EDX ), I don’t use the platform at all. I am just saying, we need institutional players to get into crypto for that wall of money, for the asset class, to really be adopted, not only here in the United States and North America, but also worldwide. We need institutional money to come into this space.
And so we are kind of seeing that play out here and I think a great way to get exposure to that is with this BLOK ETF ( NYSEARCA: BLOK ). And so I want to bring this to your attention if it’s not already. And one of the stocks, one of the Bitcoin miners was actually added to our Active Trade List by Dan Fitzpatrick today over at StockMarketMentor.com.
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