First Trust SkyBridge Crypto Industry & Digital Economy ETF CRPT, which offers exposure to companies in the crypto industry and digital economy, rose approximately 61% in February, becoming the best-performing ETF of the month.
Although most stocks in CRPT's portfolio have seen strong returns this month, some have gained more than 50%. These include clean spark CLSK, Digital marathon entries MARA, Coinbase Global CURRENCY, iris energy IREN and Robinhood Financial LLC HOOD.
The world's largest cryptocurrency has seen an unstoppable rally amid growing optimism. Demand for the token is expanding beyond committed digital asset enthusiasts. Bitcoin jumped as much as 13% to $63,968 in the trading session on February 28, its first trip above $60,000 since November 2021. The rally has set Bitcoin up for its biggest monthly gain since December 2020.
The cryptocurrency jumped 20% this week alone, especially in the wake of heavy institutional buying by a software company, MicroStrategy (MSTR). MicroStrategy revealed that it purchased an additional 3,000 bitcoins this month for $155.4 million. The company now owns a total of 193,000 Bitcoin coins worth approximately $10 billion (read: Bitcoin on an Unstoppable Rally: 5 Hot ETFs).
The arrival of spot bitcoin ETFs is already driving momentum in the space as they represent a game-changer for the cryptocurrency market. This is because spot Bitcoin ETFs have made it easier for investors to gain exposure to Bitcoin without directly owning the asset, thus underscoring the cryptocurrency's potential growth on major investment platforms. The 11 newly launched Bitcoin ETFs have attracted more than $6 billion since they began trading on January 11.
An upcoming halving event, which will slow Bitcoin supply growth, is fueling positive sentiment in the cryptocurrency market. This optimism has contributed to the continuation of a long-standing rally, further revitalizing speculative interest in a variety of smaller tokens, including Ether and Dogecoin.
Notably, bitcoin has outperformed traditional assets like stocks and gold in 2024, gaining around 40% so far.
Let's take a closer look at the fundamentals of CRPT.
CRPT in focus
The First Trust SkyBridge Crypto Industry and Digital Economy ETF is designed to provide exposure to companies that SkyBridge believes are driving innovation related to cryptocurrencies, cryptoassets, and digital economies. SkyBridge identifies stocks primarily through โbottom-upโ research focused on finding leading companies in the crypto industry ecosystem. The First Trust SkyBridge Crypto Industry & Digital Economy ETF has 30 stocks in its basket, with double-digit exposure to the top four companies (read: Crypto Industry ETF Hits New 52-Week High).
The First Trust SkyBridge Crypto Industry & Digital Economy ETF charges 85 basis points in fees per year to investors. It has accumulated $43.6 million in its asset base and trades an average daily volume of 70,000 shares.
Best Performing CRPT Stocks
clean spark is dedicated to cryptocurrency mining. The stock has soared 124.6% in February and represents a 2.9% stake in the ETF.
CleanSpark has estimated earnings growth of 81.4% for the fiscal year ending September 2024. It has a Zacks Rank #2 (Buy).
Digital Marathon is a digital asset technology company that mines cryptocurrencies. It is focused on the blockchain ecosystem and the generation of digital assets. The stock is up 75% and represents a 13.2% stake in the ETF.
Marathon Digital has an estimated earnings growth rate of 457.4% for this year and a Zacks Rank #3 (Hold).
Coinbase is the largest cryptocurrency exchange in the US and trades about 50 different digital assets. It recovered 56.6% in February and represents 21.7% of CRPT's portfolio.
Coinbase has an estimated earnings growth rate of 172.9% for this year and a Zacks Rank #1 (Strong Buy). You can see The complete list of today's Zacks #1 Rank stocks here.
iris energy is a Bitcoin mining company that builds, owns and operates data center infrastructure with a focus on entering regions where it can access abundant and/or underutilized renewable energy to power its operations. The stock is up 54.3% this month and represents a 1.9% share of the CRPT basket.
Iris Energy has an estimated earnings growth rate of 100.6% for the fiscal year ending June 2024 and a Zacks Rank #3.
Robinhood Financial is a registered stockbroker. Robinhood Securities offers brokerage clearing services, while Robinhood Crypto offers cryptocurrency trading. HOOD has estimated earnings growth of 132.8% for this year.
Robinhood Financial gained 50.2% in February and represents a 0.2% stake in the ETF. It has a Zacks Rank #3.
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Marathon Digital Holdings, Inc. (MARA): Free Stock Analysis Report
Cleanspark, Inc. (CLSK): Free Stock Analysis Report
Coinbase Global, Inc. (COIN): Free Stock Analysis Report
Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report
First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT): ETF Research Reports
Iris Energy Limited (IREN): Free Stock Analysis Report
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:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/dlnews/WRCAIFBWZRBQ5GGMWNNMSY6ATE.jpg?w=75&resize=75,75&ssl=1 "Robinhood to cut fees for crypto traders with Arbitrum integration")
