Key Takeaways
- Blockchain is increasingly used in investing and the cryptocurrency world.
- You could argue that it’s a relatively new concept, but the companies currently involved are well-established.
- We will cover the best crypto and blockchain stocks and exchange-traded funds (ETFs) in the market today.
The rise of crypto and blockchain has seen many companies emerge that use the technology to offer various services.
In this article, we will take a look at two of the hottest blockchain stocks and exchange-traded funds (ETFs) to watch out for this year!
Crypto Stocks
Crypto stocks are shares of publicly traded companies that derive a significant portion of their revenue or business from the cryptocurrency industry. These companies can range from cryptocurrency exchanges to mining companies and blockchain technology providers.
Let’s get to know some of the best crypto stocks in US stock market today:
MicroStrategy (MSTR)
MicroStrategy is a publicly traded software company that has become synonymous with Bitcoin investment. While its core business revolves around business intelligence software, it has made headlines due to its significant investments in Bitcoin due to MicroStrategy CEO Michael Saylor. This also has led many to label MicroStrategy as a crypto stock.
The company began acquiring Bitcoin in August 2020, driven by a belief in its potential as a digital asset and store of value. MicroStrategy has since amassed a substantial Bitcoin treasury, making it one of the largest corporate holders of the cryptocurrency. This has positioned the company as a pioneer in the intersection of traditional finance (TradFi) and the crypto space.
The decision to invest heavily in Bitcoin has significantly impacted MicroStrategy’s stock price. As the value of Bitcoin fluctuates, so too does the company’s stock. This correlation has made MicroStrategy a popular choice for investors seeking exposure to the cryptocurrency market without directly owning Bitcoin.
While MicroStrategy’s Bitcoin holdings have generated significant attention, it’s important to note that the company’s core business remains its software products.
Also Read: MicroStrategy And Its Bitcoin Policy: A Bold Approach To Corporate Treasury Management
Coinbase (COIN)
Founded in May 2012, Coinbase has grown to become one of the largest and most trusted platforms for buying, selling, and storing various cryptocurrencies in the United States.
The company’s core business provides a user-friendly interface for individuals and institutions to trade cryptocurrencies. The platform offers many digital assets, including Bitcoin, Ethereum, and other popular altcoins. In addition to trading, the platform also provides custodial services, allowing users to securely store their crypto assets.
Coinbase’s business model has been successful due to several factors. First, the company has a strong focus on compliance with regulatory requirements, which has helped to build trust among investors and regulators. Second, Coinbase has invested heavily in technology and security to ensure the safety of user funds and protect against potential hacks. Finally, the company has expanded its offerings beyond traditional spot trading to include other services contributing to its growth.
Due to its involvement in the crypto market, the company is often categorized as a crypto stock. Notably, Coinbase’s financial performance is closely tied to the overall health of the cryptocurrency market, with fluctuations in cryptocurrency prices impacting its revenue and profitability.
Block (SQ)
Block (formerly Square) has a continually expanding commerce ecosystem that makes it a popular commerce tool and one of the best blockchain stocks in the market. The company hired open-source engineers to enhance the ecosystem, not to mention the services of Matt Corallo, a renowned Bitcoin developer. This Bitcoin-focused division is also headed by Steve Lee, a former Google director.
Block CEO Jack Dorsey is an ardent supporter of Bitcoin, integrating its Cash App to allow the buying and selling of BTC to users. This is a sought-after feature among cryptocurrency fans, and to prove its point, the service resulted in over $190 million in revenue over the first two quarters of 2019 and yielded a gross profit of almost $3 million.
This move has made Block a blockchain stock player in terms of popular tech stocks to buy. The CEO and co-founder of the blockchain stock also said that in the long run, cryptocurrencies will allow for the launch of a product that people can use globally, just like an Internet company.
This way, users do not have to go to different markets, banks, and regulatory bodies to do so.
Visa (V)
Naturally, it is given that companies with credit and debit card services see the blockchain as one of the frontiers in the business. Visa is one of those companies, as they were involved from the beginning in 2016.
Visa plays a crucial role in the ever-growing industry of blockchain technology. The company helps integrate blockchain with the secure business-to-business (B2B) payment system in place. Technically, this can allow you to convert it to cash and reward payments.
Visa’s involvement in investing in blockchain starts with Visa B2B Connect. It was introduced as a secure payment service via the blockchain option, and they now have options to connect debit and credit cards to cryptocurrency wallets. This makes life easier, as you can handle the payment with absolute ease!
Also Read: Top 9 Crypto Credit & Debit Cards You Need To Know
Marathon Digital Holdings (MARA)
Marathon Digital Holdings is a publicly traded company in the cryptocurrency mining industry. Essentially, they use highly specialized computers to solve complex mathematical problems to mine Bitcoin.
These computers, often called “mining rigs,” require significant electricity. As a result, like many other cryptocurrency mining companies, Marathon Digital Holdings has been focusing on locating mining operations in regions with low-cost energy sources.
The value of a cryptocurrency mining company’s stock can fluctuate significantly based on factors such as the price of the cryptocurrency being mined (in this case, Bitcoin), the cost of electricity, and the overall health of the crypto market.
Investing in a cryptocurrency mining company like Marathon Digital Holdings can be considered a speculative investment, as it’s subject to the volatility and risks inherent in the cryptocurrency market.
Riot Platforms (RIOT)
Riot Blockchain, Inc. (RIOT) is a publicly traded cryptocurrency mining company headquartered in Castle Rock, Colorado. Formerly known as Bioptix, Inc., the company shifted its focus to blockchain technology and cryptocurrency mining in 2017.
The company’s stock is often considered a crypto stock because the price of Bitcoin heavily influences its value. If Bitcoin’s price rises, investors in Riot Platforms may see their stock value increase as well. However, the reverse is also true—Riot Platforms’ stock may decline if Bitcoin’s price falls.
CleanSpark (CLSK)
CleanSpark, Inc. (CLSK) is a technology company that provides software and energy solutions focusing on microgrid management and renewable energy integration.
The company is also involved in Bitcoin mining, leveraging its energy expertise to enhance the efficiency and sustainability of crypto mining operations. The company is headquartered in Nevada and is publicly traded on the NASDAQ stock exchange.
Crypto Spot ETFs
Crypto spot exchange-traded funds (ETFs) became a trend in 2024 when the US Securities and Exchange Commission (SEC) finally approved the first-ever Bitcoin spot ETF in January and the Ethereum spot ETF in July. These can be a great option if you are not tech-savvy enough to handle your own crypto and would instead let a qualified custodian manage it for you.
Remember that these ETFs have management fees, so be sure to research the potential costs associated with the ETF issuer.
The most famous Bitcoin spot ETFs right now include:
iShares Bitcoin Trust ETF (IBIT)
The iShares Bitcoin Trust ETF (IBIT) was launched by BlackRock, the world’s largest asset manager with $10 trillion in assets under management (AUM). It is one of the first and largest Bitcoin ETFs available in the US, offering investors a way to gain exposure to Bitcoin without having to buy and hold the cryptocurrency directly.
ARK 21Shares Bitcoin ETF (ARKB)
The ARK 21Shares Bitcoin ETF (ARKB) is a joint venture between Ark Invest, a well-known investment firm led by Cathie Wood, and 21Shares, a digital asset specialist.
ARKB is managed by ARK Invest, which is known for its innovative investment strategies and focus on disruptive technologies. At the same time, 21Shares brings its expertise in the cryptocurrency market to the ETF, providing secure and efficient exposure to Bitcoin.
Invesco Galaxy Bitcoin ETF (BTCO)
The Invesco Galaxy Bitcoin ETF (BTCO) is a joint venture between Invesco and Galaxy Digital. Invesco is a well-known global investment management firm with a strong track record in traditional financial products. Galaxy Digital, on the other hand, is a crypto-focused company that provides a range of financial services, including trading, custody, and investing in digital assets.
Fidelity Wise Origin Bitcoin Fund (FBTC)
The Fidelity Wise Origin Bitcoin Fund (FBTC) is an exchange-traded product (ETP) by Fidelity Investments that seeks to track the performance of Bitcoin.
VanEck Bitcoin Trust (HODL)
The VanEck Bitcoin Trust (HODL) was launched by VanEck Associates Corporation and is designed to expose investors to the price of Bitcoin without purchasing or holding the cryptocurrency directly.
Final Thoughts
You have many options if you are looking for the best stocks and ETFs in the crypto and blockchain industry. This list has given you pretty good choices if you plan to have long-term growth. Overall, 2024 is expected to mark worldwide traction for blockchain technologies!
