Crypto-related stocks see $1 billion increase in retail trading

Shares related to the cryptocurrency sector saw inflows of nearly $1 billion last week, driven by a resurgence in retail investment, according to a report by VandaTrack.

Last week, Marathon Digital Holdings, Coinbase Global and Riot Blockchain were among the most bought assets Fidelity reported seeing trading on its platform.

Although down around 40% year-to-date, in the past month Marathon Digital shares have gained 133%, while those of Coinbase and Riot Blockchain are also up at least 50%. %. For example, Coinbase had recently struggled with declining trading volumes on its platform.

As a result, the NYSE FactSet Global Blockchain Technologies Index is now on track for its biggest monthly gain since February 2021. Year-to-date, the Bloomberg Galaxy Crypto Index, which tracks the largest digital assets , including bitcoin, is up around 35%.

Meanwhile, half of the top 20 performing U.S. exchange-traded funds (ETFs) since the end of June are also tied to the cryptocurrency sector.

Crypto mining stocks rise

Although Bitcoin is still down around 51% this year, it is currently on track for its first monthly gain since March. “Retail traders are definitely surfacing here,” said Ed Moya, senior market analyst at Oanda Corp. “Everyone was expecting one last major dip for Bitcoin; now prices are recovering and risk appetite on Wall Street is improving somewhat.”

The return of retail investors to Bitcoin has also attracted them to mining stocks. For example, Viridi’s $7.4 million Bitcoin Miners ETF was up 33% last month. This made it one of the best performing US-listed exchange-traded funds in July.

Additionally, Stronghold Digital Mining’s ETF jumped more than 79% over the same period. It is currently on track for its best month ever.

Last week, trading volume hit more than 70% of its total trading volume since its IPO last year, with more than 100 million shares traded in a single day.

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