Research > ETFs > ETF / ETP Commentary > 

Bitcoin and Crypto off to a Powerful Start In October

Bitcoin is touching prices that it hasn’t seen since early May when Chinese regulations caused a plummet in the popular cryptocurrency. That, coupled with the currently popular Shiba Inu coin, have driven high traffic through crypto exchanges as trading volumes increase drastically.Image source: CoinMarketCapBitcoin has made a rapid recovery from its most recent lows of $1.8 billion last month, climbing to over $2.3 trillion currently, and showing the potential to push even higher, reported Forbes. Part of the boost has come as major institutions lend credibility to the crypto space.Bank of America recently released a white paper that acknowledged Bitcoin and crypto as “too large to ignore,” sending the price of Bitcoin above $50,000 the same day.“It’s difficult to overstate how transformative blockchain technology, digital assets, and the thousands of decentralized apps that have yet to be created could potentially be,” said the bank’s analyst team, led by the bank’s head of cryptocurrency and digital asset strategy Alkesh Shah, in their report.“Bitcoin is important,” Shah said in a statement released with the report, “but the digital asset ecosystem is so much more.”Interest in the crypto world continues to increase as decentralized finance (DeFi) becomes more widespread, coupled with the popularity of non-fungible tokens (NFT), whose market grew $10.7 billion through the third quarter of this year. This is eight times that of the previous quarter and reflects a sustained interest in digital assets of all kinds.Alongside Bank of America’s paper acknowledging the importance of the crypto space, U.S. Bank joined the ranks of JPMorgan in offering crypto services or support for their clients, and Citi announced its entrance into Bitcoin futures trading. As more major institutions continue to enter the crypto space, it signals longevity and support for the growing asset class.Bitwise Captures Crypto Ecosystem GrowthThe Bitwise Crypto Industry Innovators ETF (BITQ) offers investors exposure to the crypto revolution without investing directly in crypto assets.BITQ tracks the Bitwise Crypto Innovators 30 Index, an index that has at least 85% allocation into companies that are cryptocurrency exchanges carrying Bitcoin and other cryptocurrencies, crypto mining, and mining equipment companies, as well as service providers. The remaining 15% is allocated to large-cap support companies with at least one major part of their businesses dedicated to crypto.Coinbase, the popular cryptocurrency exchange, is carried within BITQ and is experiencing a boom in trading volume right now while Bitcoin and Shiba Inu cryptocurrencies surge.The top 3 holdings of BITQ are MicroStrategy (MSTR) with a weight of 10.66%, Galaxy Digital Holding (GLXY) with a weight of 10.14%, and Coinbase Global (COIN) with a weight of 10.13%.The fund has an expense ratio of 0.85% and net assets of $77 million.For more news, information, and strategy, visit the Crypto Channel.

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.