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Bitcoin’s First Spot ETF Coming

Bitcoin’s First Spot ETF Coming

Plus, HP moderates 2023 expectations.

A group of cryptocurrency coins on a marble background

Photo by Traxer on Unsplash

Bitcoin’s First Spot ETF Coming

Today is Wednesday, August 30, 2023.

The Early Bird Index today is 55.62.

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Bitcoin’s First Spot ETF Coming

We might be one step closer to finally having a spot Bitcoin ETF (exchange-traded fund) in the U.S. after a positive development on Tuesday.

Details: The Grayscale Bitcoin Trust (OTCMKTS: GBTC) received a ruling on Tuesday that paves the way for GBTC to launch a spot Bitcoin ETF.

Definition: A spot Bitcoin ETF tracks the underlying market price of the actual cryptocurrency. A futures Bitcoin ETF tracks bitcoin futures contracts. There are a few futures Bitcoin ETFs in the U.S. for investors, but no spot Bitcoin ETF has been approved in the U.S. yet.

Background: The United States Securities and Exchange Commission previously blocked proposed spot Bitcoin ETFs from GBTC and other funds due to concerns about regulation. Well, the SEC can’t stop that anymore due to Tuesday’s news.

Price: Cryptocurrency prices had a great day on Tuesday, especially Bitcoin, which was up about 5%. Other crypto-related stocks performed well on Tuesday, including Coinbase Global (Nasdaq: COIN), which jumped 14.91%.

Final Thoughts: This news potentially paves the way for GBTC or others to introduce spot Bitcoin ETFs to the market in the future, which could make it easier for average investors to invest in Bitcoin.

Notables

Notable Earnings Today: Salesforce (NYSE: CRM), Victoria's Secret (NYSE: VSCO), CrowdStrike (Nasdaq: CRWD), Veeva Systems (NYSE: VEEV), Chewy (NYSE: CHWY), Five Below (Nasdaq: FIVE), Conn's (Nasdaq: CONN), Pure Storage (NYSE: PSTG), BioLine RX (Nasdaq: BLRX), Cooper (NYSE: COO), Greif (NYSE: GEF), Patterson Companies (Nasdaq: PDCO), Brown-Forman (NYSE: BF.B), MasterCraft (Nasdaq: MCFT), Okta (Nasdaq: OKTA), Vera Bradley (Nasdaq: VRA), Hovnanian Enterprises (NYSE: HOV).

Notable IPOs Today: Inspire Veterinary Partners, Inc. Class A Common Stock (Nasdaq: IVP), Segall Bryant & Hamill Trust (NYSE Arca: USSE).

Notable Equity Crowdfunding Campaigns Ending Today: Taste (StartEngine), Matet’s Kitchen (Honeycomb), Cutting Edge Superconductors (Netcapital), Eureka Compass Vegan Food (Silicon Prairie), NetWire (Netcapital), Yeyo Tequila (StartEngine).

Notable Economic Events Today: ADP Nonfarm Employment Change (8:15 a.m. ET), GDP (8:30 a.m. ET), Goods Trade Balance (8:30 a.m. ET), Retail Inventories (8:30 a.m. ET), Pending Home Sales (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).

HP Moderates 2023 Expectations

Photo by Luca Bravo on Unsplash

Shares of HP (NYSE: HPQ) fell 10.74% in after-hours trading on Tuesday after the company posted mixed financial results.

Financials: HP reported earnings of 86 cents per share in the past quarter, which was in line. But revenue was lower than expected at $13.2 billion.

Outlook: The company now expects full-year earnings to be in the range of $3.23 to $3.35 per share, which is lower than expected.

Quote: “The external environment has not improved as quickly as anticipated and we are moderating our expectations.” - Enrique Lores, HP President and CEO.

Final Thoughts: HP is up 17% this year, but lagging behind other tech stocks. The company has now posted multiple quarters where its revenue totals fell short of expectations.

Ambarella’s Bad Outlook

Semiconductor company Ambarella (Nasdaq: AMBA) fell 16.40% in after-hours trading on Tuesday after posting mixed financial results and weaker guidance.

Final Thoughts: Ambarella is down 4% this year, proving that even some semiconductor stocks are having a bad 2023.