5 Top-Performing Stocks of the Top ETF of October
First Trust SkyBridge Crypto Industry & Digital Economy ETF CRPT, which provides exposure to the crypto industry and digital economy companies, has gained about 9.2%, becoming the best-performing ETF of October.
Bitcoin, the world's largest cryptocurrency, surged to heights not seen in a year. The digital currency soared to $35,000 last week, more than double the price seen at the start of 2023 and reflecting a high level of investor enthusiasm. The confluence of regulatory developments, advancing technology and positive market sentiment drove the crypto’s thrilling ascent to new highs. The surge has rekindled interest in the crypto market, signaling positive sentiment among both retail and institutional investors.
Just a handful of stocks in CRPT’s portfolio delivered strong returns in October. Cipher Mining Technologies Inc. CIFR, MicroStrategy Incorporated MSTR, Hut 8 Mining Corp. HUT, CleanSpark Inc. CLSK, and Microsoft Corporation MSFT led the way.
One of the most notable drivers behind Bitcoin's recent surge is the growing anticipation surrounding the approval of Bitcoin ETFs in the United States. Speculation has risen that regulatory authorities may soon greenlight Bitcoin ETFs, providing a significant boost to the cryptocurrency's price. Such a development would not only legitimize Bitcoin in the eyes of mainstream investors but also provide a more accessible avenue for investment, thereby potentially attracting a fresh influx of capital into the crypto market (read: 5 ETFs at the Forefront of Bitcoin's Thrilling Ascent).
Additionally, the Options market positioning suggests that Bitcoin's price has further room to grow, indicating a bullish sentiment prevailing in the market. This sentiment is likely bolstered by the broader acceptance and adoption of cryptocurrencies, propelled by notable advancements in blockchain technology and increasing recognition of crypto assets by traditional financial institutions.
Further, the crypto-linked stocks have followed Bitcoin's upward trajectory, reflecting a ripple effect across the broader financial ecosystem. The optimism underscores the robust appeal of Bitcoin and the broader crypto space, presenting a myriad of investment opportunities.
Let’s take a closer look at the fundamentals of CRPT.
CRPT in Focus
First Trust SkyBridge Crypto Industry and Digital Economy ETF is designed to provide exposure to companies that SkyBridge believes are driving cryptocurrency, crypto assets and digital economies-related innovation. SkyBridge identifies securities primarily via “bottom up” research focused on finding companies leading in the crypto industry ecosystem. First Trust SkyBridge Crypto Industry holds 30 stocks in its basket with a double-digit concentration on the top five firms (read: 5 ETFs Harnessing the Power of the Bitcoin Surge).
First Trust SkyBridge Crypto Industry and Digital Economy ETF charges 85 bps in fees per year from investors. It has amassed $18.2 million in its asset base and trades in an average daily volume of 17,000 shares.
Best-Performing Stocks of CRPT
Cipher Mining is an industrial-scale bitcoin mining company. The stock has soared 37.4% in a month and accounts for a 5.2% share in the ETF.
Cipher Mining earnings are expected to decline 18.7% this year. It has a Zacks Rank #3 (Hold).
MicroStrategy is a leading worldwide provider of business intelligence software. The stock rose 27.6% in October and accounts for a 23.7% share in the ETF.
MicroStrategy has an estimated earnings growth rate of 124.9% for this year and a Zacks Rank #3.
Hut 8 Mining is a focused digital asset miner. The stock has risen 7% this month and accounts for a 6.7% share in the ETF. HUT is expected to deliver flat earnings this year and has a market cap of $474.5 million.
Hut 8 Mining has a Zacks Rank #3 and a Growth Score of B.
CleanSpark is a microgrid company that provides energy software and control technology. The company offers intelligent energy monitoring and controls, microgrid design and engineering, microgrid consulting services and turn-key microgrid implementation services. It has rallied 6% in October and makes up for 3.9% in CRPT’s portfolio.
CleanSpark has an estimated earnings growth rate of 53.8% for the fiscal year ending September 2024 and a Zacks Rank #4 (Sell). It has a solid Growth Score of A.
Microsoft is one of the largest broad-based technology providers in the world. The company dominates the PC software market, with more than 73% share of operating systems. MSFT gained 4.8% in a month and accounted for 1.6% in the fund’s basket.
Microsoft is expected to see earnings growth of 13.24% in the fiscal year ending June 2024. It has a Zacks Rank #2. It has a solid Growth Score of A. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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Microsoft Corporation (MSFT) : Free Stock Analysis Report
MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report
Cleanspark, Inc. (CLSK) : Free Stock Analysis Report
Hut 8 Mining Corp. (HUT) : Free Stock Analysis Report
Cipher Mining Inc. (CIFR) : Free Stock Analysis Report
First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT): ETF Research Reports
