Bitcoin Mining ETF Launches Today

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Bitcoin Mining ETF Launches Today

The Valkyrie Bitcoin miners exchange-traded fund (ETF) is slated to launch on Nasdaq today, representing another step closer to a true Bitcoin ETF.

Details: Valkyrie’s mining ETF, which will be under the ticker WGMI, will have 80% of its assets in securities focused on Bitcoin mining or software for the practice of mining Bitcoin. Up to 20% of the assets could include Bitcoin.

Previously: Valkyrie first proposed its ETF in a filing to the United States Securities and Exchange Commission (SEC) last month.

Background: The SEC approved the first Bitcoin futures ETFs last year, which are funds that track Bitcoin contracts instead of the actual cryptocurrency. The SEC could finally approve of a spot Bitcoin ETF, which has direct exposure to the crypto, later in 2022. Today’s launch is a step in the right direction.

Final Thoughts: The SEC has recently delayed requests to approve a spot Bitcoin ETF, but traders remain optimistic that it will get approved this year.

Notables

Notable Earnings Today: Peloton Interactive (Nasdaq: PTON), Pfizer (NYSE: PFE), BP (NYSE: BP), Digital Turbine (Nasdaq: APPS), Coty (NYSE: COTY), Enphase Energy (Nasdaq: ENPH), Harley-Davidson (NYSE: HOG), Chipotle Mexican Grill (NYSE: CMG), Cenovus Energy (NYSE: CVE), Corsair Gaming (Nasdaq: CRSR), Sysco (NYSE: SYY), Lyft (Nasdaq: LYFT), Fiserv (Nasdaq: FISV), XPO Logistics (NYSE: XPO), Aramark (NYSE: ARMK), Spirit Airlines (NYSE: SAVE), Warner Music Group (NASDAQ: WMG), Doximity (NYSE: DOCS), New Residential Investment (NYSE: NRZ), Paycom (NYSE: PAYC), Assurant (NYSE: AIZ), Atmos Energy (NYSE: ATO), Centene (NYSE: CNC), CONSOL Energy (CEIX), DuPont de Nemours (NYSE: DD), Gartner (NYSE: IT), GlobalFoundries (Nasdaq: GFS), Incyte (Nasdaq: INCY), Jacobs Engineering Group (NYSE: J), KKR & Co. (NYSE: KKR), Lear (NYSE: LEA), Masco (NYSE: MAS), S&P Global (NYSE: SPGI), Valvoline (NYSE: VVV), Voya Financial (NYSE: VOYA), Willis Towers Watson (Nasdaq: WTW), Yum China Holdings (NYSE: YUMC), Credicorp (NYSE: BAP), Danaos (NYSE: DAC).

Notable IPOs Today: Valkyrie Bitcoin Miners ETF (Nasdaq: WGMI), LIV Capital Acquisition Corp. II Unit (Nasdaq: LIVBU).

Notable Equity Crowdfunding Campaigns Ending Today: Ritual Motion (StartEngine), Neurotez (StartEngine), XRHealth (StartEngine).

Notable Economic Events Today: NFIB small business optimism (6:00 a.m. ET), Imports/Exports (8:30 a.m. ET), EIA Short-Term Energy Outlook (12:00 p.m. ET), API weekly crude oil stock (4:30 p.m. ET).

Take-Two Slips on Mixed Earnings

Shares of Take-Two Interactive Software (Nasdaq: TTWO) fell 1.97% during after-hours trading on Monday after the video game maker reported mixed earnings.

Financials: Take-Two reported earnings of $1.24, which was better than expected. Revenue of $866.1 million slightly missed expectations.

Good and Bad: While the company raised its revenue guidance for the fiscal year, the overall bookings picture was not spectacular. Some investors expected more and were disappointed in the results.

Final Thoughts: Take-Two is working on a new version of “Grand Theft Auto” and is aiming to merge with Zynga (Nasdaq: ZNGA). These two developments should help the company.

2022 Stock Market Outlook

All of the top stock indexes grew in January 2021 by nearly 20%. However, it is a different story in 2022.

Correction: January’s correction, which is a market downturn, may not be over yet. The impact of rising interest rates could result in more volatility and the continuation of a downturn.

Find Value: This might be the year when value stocks really overtake growth stocks. With a changing of the guard, consider looking at some value stocks in February.

Final Thoughts: Keep an eye on earnings. It will be interesting to see in February how companies are projecting their financials for the rest of 2022.

Trends to Watch

Leaving: Peter Thiel to Exit Meta’s Board to Support Trump-Aligned Candidates (The New York Times)

Not Happening: Nvidia’s huge Arm deal has reportedly just been scrapped (The Verge)

Climbing: Bitcoin rises to its highest level in a month, bouncing from January lows (CNBC)

Good Earnings: Chegg Shares Spike as Earnings and Sales Top Expectations (Barron’s)

Big Change: Raytheon Tech's Missiles Division CFO, Other Leaders Depart in Shakeup (Bloomberg)

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