By Nigam Arora
Siebert Financial /zigman2/quotes/203873990/composite SIEB -0.59% is a traditional brokerage firm apparently planning to enter the crypto-brokerage business. Overstock’s blockchain subsidiary, tZERO, has taken a 1% stake in Siebert’s parent. Again, fundamentally the new valuation of the stock cannot be justified, but none of the bitcoin-related stocks are trading on fundamentals.
Social Reality /zigman2/quotes/208942928/composite SRAX +3.10% appears to be planning a blockchain-based system to enable people to sell their own data.
Seven Stars appears to be planning a blockchain system for trading financial products such as ETFs backed by digital assets.
Cboe /zigman2/quotes/208166986/composite CBOE -0.11% and CME /zigman2/quotes/210449693/composite CME +2.19% are already trading bitcoin futures. Nasdaq /zigman2/quotes/205547889/composite NDAQ +0.56% is also planning to launch bitcoin futures. Brokers such as Interactive Brokers /zigman2/quotes/208880397/composite IBKR +3.22% , TD Ameritrade and E*TRADE are also allowing their clients to trade bitcoin futures. Not to be left behind, Intercontinental Exchange /zigman2/quotes/209108507/composite ICE +1.71% , the parent of the New York Stock Exchange, is planning on launching bitcoin ETFs.
At The Arora Report we have profitably completed trades on AMD /zigman2/quotes/208144392/composite AMD +1.70% , Square /zigman2/quotes/205989440/composite SQ +2.16% and Overstock on the bitcoin frenzy. We have another trade in progress now and are always looking for new trades related to bitcoin.
Blockchain, the technology that underlies bitcoin, is likely to revolutionize many industries. It may turn out to be as important as the internet. Investors who got into the internet boom early made a fortune in stocks like Amazon /zigman2/quotes/210331248/composite AMZN +1.06% , Facebook /zigman2/quotes/205064656/composite FB +0.80% , Google /zigman2/quotes/205453964/composite GOOG +0.63% /zigman2/quotes/202490156/composite GOOGL +0.66% and Netflix /zigman2/quotes/202353025/composite NFLX +0.44% .
At The Arora Report we are in the hunt for long-term investment opportunities in addition to short-term trades.
Investors must be cautious that there is high risk, especially in short-term trades. Often such stocks trade completely divorced from their fundamentals. Short squeezes are common. Many stocks are nano-caps and have few shares outstanding; that makes them a target of manipulation. In short, be extra careful.
Disclosure: Subscribers to The Arora Report may have positions in the securities mentioned in this article or may take positions at any time. All recommended positions are reviewed daily at The Arora Report.
Nigam Arora is an investor, engineer and nuclear physicist by background, has founded two Inc. 500 fastest-growing companies, is the developer of the adaptive ZYX Global Multi Asset Allocation Model and the ZYX Change Method to profit from change in trading and investing. He is the founder of The Arora Report, which publishes four newsletters. Nigam can be reached at Nigam@TheAroraReport.com.