2 Crypto Stocks to Watch Ahead of Spot ETF Approval

The crypto market has witnessed a roller coaster ride this year but has generated profitable returns. In early December, the digital currency topped around $44,000 for the first time since April last year and gained above 150% year-to-date, primarily fueled by optimism for a spot bitcoin ETF.

Amid this backdrop, it could be wise to add quality crypto-centric stocks NVIDIA Corporation (NVDA – Get Rating) and Block, Inc. (SQ – Get Rating)  to your watchlist.

Cryptocurrency prices are rebounding after a so-called “crypto winter” that was aggravated by the collapse of the FTX exchange in 2022. Last year was highlighted by hedge fund collapses, crypto lender failures, and worsening losses at miners, which was punctuated in November 2022 when the FTX spiraled into bankruptcy.

While the Bitcoin price surged more than 150% from the same time last year, shares of Coinbase (COIN – Get Rating), MicroStrategy (MSTR – Get Rating), and the Grayscale Bitcoin Trust (GBTC – Get Rating), all closely tied to the digital currency, rose more than 300% in value. Ethereum, another major coin, is up approximately 85% from this time in 2022.

Yesterday, the Bitcoin price jumped to nearly $43,446.82, a significant win for investors who got in at the start of the year when the price was around $16,500.

One of the primary drivers for the Bitcoin surge this year was an easing of the Fed’s interest rate increases, which created an attractive case for riskier assets. Crypto prices were further strengthened by the upcoming bitcoin halving, which occurs every four years and is scheduled for May 2024. During the halving process, the reward for mining is slashed in half, capping the supply of bitcoin.

Additional buying was fueled by the potential for a flurry of bitcoin ETFs emerging in the new year.

This year, various leading financial firms, including…

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