By Mark DeCambre
Hello, again: In a rumbustious week of trading on Wall Street, one big question that seems to be emerging is this: Is sentiment in crypto influencing the mood in traditional financial markets?
The jury is out but a lot of folks seem inclined to draw parallels between risk appetite in the nascent digital-asset market and sentiment in stocks and bonds.
As per usual, send tips, or feedback, and find me on Twitter at @mdecambre to tell me what we need to be jumping on.
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What happened this week? We promise that we won’t be talking about crypto on Wrap every week, but it is becoming a more pervasive talking point as one of the year’s hottest trades appears to be coming off the boil.
And interestingly, researchers at JPMorgan Chase /zigman2/quotes/205971034/composite JPM +1.82% this week made the case that investors are shifting from bitcoin to gold. It’s a thesis that seemingly has its challenges since the assumption is that bitcoin and gold investors don’t mix well.
JPMorgan says that “the bitcoin flow picture continues to deteriorate and is pointing to continued retrenchment by institutional investors,” and those investors are gravitating from bitcoin futures /zigman2/quotes/211755589/delayed BTC.1 +2.76% , which the report says “experienced their steepest and most sustained liquidation since the bitcoin ascent started last October,” and into bullion /zigman2/quotes/210034565/delayed GC00 +1.85% .
What’s fascinating is that the top performing ETFs this week, among those screened by MarketWatch, are those for gold and silver miners.
The ETFMG Prime Junior Silver Miners ETF is up nearly 10% so far this week, through midday Thursday, for example. The Global X Silver Miners ETF was up 8.1% and VanEck Vectors Junior Gold Miners ETF was showing a more than 7% return thus far.
There isn’t an ETF exclusively for companies that digitally mine for bitcoin miners…yet, but Riot Blockchain Inc. shares /zigman2/quotes/209538617/composite RIOT +5.34% are down nearly 7% over the same period this week and those for Marathon Digital Holdings /zigman2/quotes/205886758/composite MARA +8.21% were off 1.2%, FactSet data show.
Weekly ETF moves
|Top 5 gainers of the past week||% Performance|
|ETFMG Prime Junior Silver Miners ETF SILJ||9.6|
|Invesco Solar ETF /zigman2/quotes/210041821/composite TAN||8.6|
|Invesco WilderHill Clean Energy ETF /zigman2/quotes/208932878/composite PBW||8.5|
|Global X Silver Miners ETF /zigman2/quotes/207060602/composite SIL||8.1|
|VanEck Vectors Junior Gold Miners ETF /zigman2/quotes/204075079/composite GDXJ||7.3|
|Source: FactSet, through Thursday midday, May 20, excluding ETNs and leveraged products . Includes NYSE, Nasdaq and Cboe traded ETFs of $500 million or greater|
|Top 5 decliners of the past week||% Performance|
|iShares U.S. Home Construction ETF||-3.4|
|SPDR S&P Homebuilders ETF /zigman2/quotes/202739297/composite XHB||-3.0|
|Global X Copper Miners ETF /zigman2/quotes/200953483/composite COPX||-2.9|
|Global X U.S. Infrastructure Development ETF /zigman2/quotes/200238288/composite PAVE||-2.4|
|iShares MSCI Global Metals & Mining Producers ETF /zigman2/quotes/203481041/composite PICK||-2.3|
|Source: FactSet, through Thursday midday, May 29, excluding ETNs and leveraged products . Includes NYSE, Nasdaq and Cboe traded ETFs of $500 million or greater|
Modernizing Dow theory? The iShares Transportation Average ETF /zigman2/quotes/204736489/composite IYT +1.98% will be undergoing a renovation this summer.