Značka: Nasdaq

BTCS stock jumps 44% after announcing first-ever dividend payable in Bitcoin

On Jan. 5, Nasdaq Composite logged its biggest daily loss since February last year. But for one of its listed companies, the day turned out to be extremely bullish.Blockchain stock soarsThe share value of BTCS Inc. (BTCS), a blockchain technology company, surged nearly 44% to $4.36 at the New York closing bell, thus becoming the third-best performer on Nasdaq after Lixte Biotechnology (LIXT) and Mainz Biomed BV (MYNZ).Top Nasdaq performers as of Jan. 5, 2022’s close. Source: TheStockMarketWatch.com  In contrast, Nasdaq plunged 3.3% on January 6, its losses driven primarily by the release of the minutes of the Federal Open Market Committee (FOMC) meeting in mid-December last year. In detail, the minutes revealed the Federal Reserve officials’ intention to raise interest rates faster than anticipated.  The Fed scare did not impact BTCS, for it arrived on the same day the company announced “Bividend,” the first-ever dividend payable in Bitcoin (BTC) by a Nasdaq-listed company. Excerpts from a press release published on Jan. 5 reveal that:”BTCS intends to pay $0.05 per share in Bitcoin, based on the Bitcoin price on the ex-dividend date. Investors who do not elect to receive the Bividend in Bitcoin will receive a cash dividend of $0.05.”Investors/traders took the announcement as a cue to raise their bids for the BTCS stock, insofar that its value per share jumped to $5.05 on Jan. 5, a three-week high. However, the stock price later fell by more than 13.50% amid profit-taking sentiment but overall closed the day in profits.The BTCS correction continues BTCS dropped by another 8% to $4.01 per share following the New York opening bell on Jan. 6, this time in sync with Nasdaq, which fell nearly 1%.BTCS daily price chart. Source: TradingViewThe selloff appeared to have accelerated after BTCS tested its 50-day exponential moving average (50-day EMA; the velvet wave in the chart above) near $5.12 as resistance. In a similar fashion, the 20-day EMA (the green wave) attempted to limit BTCS’s downside momentum by acting as support.Related: Bitcoin price drops to $43.7K after Fed minutes re-confirm plans to hike ratesAs BTCS looked rangebound between the two critical moving averages, some financial experts warned investors to not invest in the stock based on hype surrounding its Bitcoin dividend launch. That included Ivory Johnson, founder of Delancey Wealth Management. The chartered financial consultant recommended that investors buy Bitcoin directly if they want to buy it instead of seeking its exposure via BTCS.”When buying any stock, your decision should be based on the fundamentals of the company itself,” he told CNBC.Douglas Boneparth, president of Bone Fide Wealth, called Bividend a “really neat bridge” for institutional investors who want to own Bitcoin. Nonetheless, he noted that BTCS’s offering is more a feature and less a product, underscoring that investors should focus on other factors before buying BTCS shares, such as the company’s future cash flows. Currently, BTCS is trading nearly 85% lower than its all-time high of $32.40, established earlier in Jan. 2021.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Nasdaq Stockholm lists Bitcoin and Ether exchange-traded notes

Nasdaq Stockholm has announced that 21Shares has listed its first two physically backed exchange-traded notes (ETN) on the Swedish trading platform. The two instruments listed, with Bitcoin (BTC) and Ether (ETH) as underlying assets, represent a new segment for ETNs — a type of unsecured debt security that tracks an underlying index of equities and trades on a major exchange. According to the announcement, the new ETNs will provide investors access to investment opportunities in cryptocurrencies such as Bitcoin and Ether. Helena Wedin, European head of exchange-traded products at Nasdaq, said that exchange-traded notes allow one to invest in non-traditional assets while maintaining the transparency of a regulated market. She added, “We are happy to launch this new segment at Nasdaq Stockholm with 21Shares as the first issuer.” According to the press release, most traditional banks and brokers allow investors to trade all ETNs listed on Nasdaq Stockholm. This is a first that opens up new possibilities to investors interested in investing in cryptocurrencies but who are uncomfortable doing so on unregulated exchanges.Related: ETN vs. ETF: Which Is the Investor’s Dream?The cryptocurrency market has experienced a steep rise in valuation throughout the previous year. Despite some recent price dips, interest in cryptocurrencies continues to be high.One reason for this sustained interest may be the possibility of increased institutional investment in the market. As institutional investment in cryptocurrencies increases, we’ll likely see more products such as ETNs being listed on regulated exchanges. As reported by Cointelegraph in September, VanEck introduced Solana (SOL) and Polkadot (DOT) ETNs on Deutsche Boerse’s Xetra.

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