Ethereum
3 Crypto Stocks to Watch as Ethereum Rises on Regulatory Victory
While the price of Bitcoin (BTC) has remained stable since the April halving, Ethereum (ETH) has quickly left the blocks in 2024. ETH price is hovering around the $3,500 mark , after increasing by 56.4% since the start of the year. June 19. Ethereum is a decentralized, open, blockchain-powered software platform.
ETH’s operations as an open source blockchain with smart contract functionality, primarily in the area of decentralized finance, have given it even more prominence beyond being the second largest crypto in the world. It functions more as a network that is continually updated and maintained by validators who receive ETH as compensation for their contributions.
However, the latest upgrade to its systems, the March Dencun upgrade, failed to increase its stock as expected. The upgrade was supposed to make transactions cheaper on these blockchains and boost demand from traditional consumers. It remains to be seen whether this upgrade will have an impact in the long term. New institutional investments have also provided a huge boost, with traditional financial giants following up their successful BTC spot ETF offerings with those of ETH.
The conclusion of the SEC’s investigation into Ethereum 2.0 on June 18 is also considered a major victory for the entire crypto industry. Not only does this build investor confidence in ETH, but sets a precedent for cryptocurrency regulation. If one were to interpret the findings of the investigation, one could interpret that the sale of ETH is not considered a securities transaction. This news sent the price of ETH up more than 3% during the session.
Ether, with momentum from ETH upgrades and applications and this major regulatory victory, looks set to rise noticeably. In fact, it could surpass the $10,000 mark before the end of the year. So, with Ethereum already starting to take advantage of the market state, it might be prudent to monitor stocks with exposure to this decentralized and open source blockchain platform. Here is a selection. These currently carry a Zacks Rank #1 (Strong Buy), #2 (Buy), or #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
HIVE Digital Technologies Ltd. HIVE: This cryptocurrency mining company operating in Canada, Sweden and Iceland is dedicated to mining and selling digital currencies, including Ethereum Classic.
HIVE Digital’s expected earnings growth rate for the current year is 66.5%. The Zacks Consensus Estimate for its current year’s earnings has remained unchanged over the past 60 days. HIVE Digital currently carries a Zacks Rank #3.
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CME Group inc. CME: This company operates as one of the largest futures exchanges in the world and offers a wide range of derivatives contracts and various solutions for investing in cryptocurrencies like Ethereum.
CME Group’s expected profit growth rate for the current year is 4.1%. The Zacks Consensus Estimate for its current year’s earnings has improved 1.5% over the past 60 days. CME Group currently holds a Zacks Rank #3.
BlackRock, Inc. BLK: This public company is one of the largest investment managers in the world and one of the first companies in the traditional market to join the Bitcoin ETF race in June 2023 and get it in January. BLK also entered the spot ETH ETF space and had it listed in May.
BlackRock’s expected earnings growth rate for the current year is 9.2%. The Zacks Consensus Estimate for its current year’s earnings has improved 0.2% over the past 60 days. BlackRock currently carries a Zacks Rank #3.
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