Yesterday’s Bitcoin (BTCUSD) price hike had a similar impact on the prices of cryptocurrency-related investment products, most of them were hit by a pleasant initial price surge when news of the new record price of the cryptocurrency hit the markets by the end of the day, some had lost their profits, but an overhang of celebrations for Bitcoin’s price jump remains in their price

However, Bitcoin price has seen a spike for most of this year, having been in the lull for most of 2019, the cryptocurrency posted gains of over 197% this year, making it the top performing asset this year, in fact before the S&P 500 index

However, prices for companies and investment products related to cryptocurrencies have not always followed the price of Bitcoin, partly because they are exposed to varying degrees of exposure to cryptocurrencies.Companies that hold Bitcoin or are involved in mining the cryptocurrency benefited from one yesterday Rise in Investor Interest Others riding the bitcoin and blockchain train not so much

Here are a few stocks and investment products that saw their price rise due to the Bitcoin price surge

The recently launched Bitwise 10 Crypto Index Fund (BITW) had a record opening last week, Bitcoin’s rise in value gave its stocks further impetus, rising up to 19% to $ 140 per share, and has declined slightly since then, but has been since the start of the day still up 18%

Bitwise claims that its fund is an easy way for investors to access Bitcoin, but the company has also advised that the fund could trade at a significant and different markup on the actual asset, which is a much needed disclaimer given the volatility of the asset Crypto markets and changing demand patterns for crypto exposures by investment firms

Interestingly, BITW competitor Grayscale Bitcoin Trust (GBTC), another Bitcoin holding company that trades in OTC markets, did not do so well and was fairly stable today. GBTC has a volatile price move during the spike in Bitcoin prices in 2017 GBTC shares were traded on crypto exchanges for a premium of up to 100% to the actual Bitcoin price, however profits from today’s price action went to BITW instead of GBTC

Hut 8 Mining Corp. (HUTMF), Marathon Patent Group, Inc (MARA) and Canaan Inc (CAN) are bitcoin mining companies headquartered in Canada, the US and China Bitcoin prices have a direct impact on their operations as a price spike creates demand for their mining equipment and bitcoin inventory

During the 2017 crypto price bubble, Bitmain – the world’s largest miner – posted a profit of $ 952 billion due to increased demand for cryptocurrency mining machines, while the current rally is expected to generate similar institutional investor demand for bitcoin, it will not be used to produce lead more Bitcoin as the amount of cryptocurrency halves every four years

Canaan’s share price rose as much as 15% in the morning before falling behind The Beijing-based company reported losses in the most recent quarter due to declining demand for its machines. The price of Hut 8 Mining ended the day 6% higher than the month before Start of the day Losses were also reported in the final quarter. Whether the price hike will reverse the business outlook for both companies remains to be seen

Marathon Patent’s share price rose 7% after the market opened. At the end of the day, profits were approximately 116%. The Nevada-based miner has already forecast positive sales and profits for the coming quarters

MicroStrategy Incorporated (MSTR) may be the most obvious stock benefiting from Bitcoin’s surge as its share price started rising after the previous day’s close and was already up roughly 85% from the previous close within 30 minutes of opening, but it fell later but ended still on 13 The software company, which some analysts compare to a Bitcoin holding company, recently raised $ 650 million from the bond market to buy Bitcoin as part of its treasury management strategy

Bitcoin, Bitcoin Value, Bitcoin Price

World News – FI – Crypto Stocks Gain When Bitcoin Price Sets A New Record

Source: https://www.investopedia.com/crytpo-stocks-gain-as-bitcoin-price-sets-new-record-5092703