3 Crypto Stocks to Watch as Ethereum Rises on Regulatory Win

06/20/2024 21:01

HIVE Digital (HIVE), CME Group (CME) and BlackRock (BLK) are three Ethereum-exposed stocks that should be tracked as the Bitcoin rival wins a compliance battle with the SEC.

While the price of Bitcoin (BTC) has been holding steady since the April halving, Ethereum (ETH) has been fast off the blocks in 2024. The price of ETH is hovering around the $3500 mark, having risen 56.4% year to date as of Jun 19. Ethereum is a blockchain-powered, open-ended, decentralized software platform.

ETH’s operations as an open-source blockchain with smart contract functionality, primarily in the realm of decentralized finance, have lent even more significance to it beyond the tag of being the world’s second-largest crypto. It functions more like 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 Dencun upgrade from March, has failed to raise its stock per expectations. The upgrade was touted to make transactions cheaper on these blockchains and boost mainstream consumer demand. It remains to be seen whether the upgrade will have an impact eventually. A massive boost has also come in from new institutional investments, with traditional financial giants following up their successful spot BTC ETF bids with ETH ones.

The conclusion of the SEC’s investigation into Ethereum 2.0 on Jun 18 is also being considered a major victory for the entire crypto industry. Not only does it boost investor confidence in ETH, but sets a precedent for crypto regulations. If one were to interpret the findings of the investigation, one might interpret that the sale of ETH is not considered a securities transaction. This news pulled ETH’s price up by more than 3% in the session.

Ether, with the momentum from the upgrades and ETH applications and this major regulatory win, looks all set to rise appreciably. In fact, it may go beyond the $10,000 mark before the year ends. So, with Ethereum already starting to make good of the state of the market, it might be prudent to keep a watch on stocks exposed to this open-source, decentralized 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 engages in the mining and sale of 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 earnings has remained unchanged over the past 60 days. HIVE Digital currently carries a Zacks Rank #3.

CME Group Inc. CME: This company operates as one of the world's largest futures exchanges and offers a wide range of derivatives contracts and various solutions to invest in cryptocurrencies like Ethereum.

CME Group’s expected earnings growth rate for the current year is 4.1%. The Zacks Consensus Estimate for its current-year earnings has improved 1.5% over the past 60 days. CME Group currently carries a Zacks Rank #3.

BlackRock, Inc. BLK: This publicly owned company is one of the world’s largest investment managers andone of the first companies from the traditional market that joined the Bitcoin ETF race in June 2023 and got it approved this January. BLK has also entered the ETH spot ETF space and has got 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 earnings has improved 0.2% over the past 60 days. BlackRock currently carries a Zacks Rank #3.

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