Bitcoin ETF (FBTC) Hits New 52-Week High
For investors seeking momentum, Fidelity Wise Origin Bitcoin Fund FBTC is probably on the radar. The fund just hit a 52-week high and is up 129% from its 52-week low price of $43.34/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
FBTC in Focus
The Fidelity Bitcoin Reference Rate is designed to reflect the performance of bitcoin in U.S. dollars. The product charges 25 bps in annual fees (See: All Cryptocurrency ETFs).
Why the Move?
Driven by the increased investor risk appetite and persistent institutional demand, Bitcoin is soaring to record highs. Investor interest in this digital currency has also increased as they look for alternative routes to traditional currencies, given that the outlook for greenback remains volatile. Investors have also increased their bets on the pace of interest rate cuts by the Fed. This is a positive for the Bitcoin investing.
More Gains Ahead?
FBTC might continue its strong performance in the near term, with a positive weighted alpha of 89.30 (as per Barchart.com), which gives cues of a further rally.
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This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
