Markets

BlackRock (NASDAQ:BLK) Stock: Smart Exposure to Crypto Growth

Published

9 months ago

11 July, 2024

Black stone (NASDAQ:BLK) offers something for every investor — value, a growing dividend, and even exposure to Cryptocurrency Long-term market growth. I am bullish on BlackRock based on its dominant position in the financial markets and its stature as a leader in the growing cryptocurrency market. Additionally, I like the stock’s below-market valuation and strong dividend growth.

Dominant Player

With $10.5 trillion in assets under management (AUM) as of its most recent quarter, BlackRock is the world’s largest asset manager, offering products across equity, fixed income, alternatives and more. BlackRock serves institutional and retail clients in more than 100 countries.

Its massive size gives it significant competitive advantages. For example, it can offer investors low fees on many of its investment products, giving it a scale advantage over smaller competitors that have to charge higher fees to be financially viable.

While many traditional asset managers have struggled with the rise of index investing (which comes with lower fees due to the lack of need for active management), BlackRock has thrived. Leading this trend in innovative ways, passive products now account for the majority of its revenue.

Its low fees and passive nature make BlackRock a dominant player across a variety of asset classes, and its well-known iShares ETFs are a good example, as they are some of the largest ETFs in the stock market today.

For example, the iShares Core S&P 500 ETF (NYSEARCA:IVV) is the second largest ETF available, with just under $500 billion in AUM, and there are many other big names in the iShares family of funds, whether it’s the iShares Core MSCI EAFE ETF (BATS:IEFA) (with $118.2 billion in AUM) or the iShares Core Aggregate US Bond ETF (NYSEARCA:AGG) (US$ 108.8 billion), among others.

A Smart Way to Get Exposure to Cryptocurrency

BlackRock is also a smart way to gain exposure to the growth of the cryptocurrency sector and a major beneficiary of the rise of cryptocurrencies, given how the firm has positioned itself as a heavyweight in the space.

BlackRock leveraged its blue chip reputation, size, scale and marketing prowess to make its Bitcoin (BTC-USD) ETF, the iShares Bitcoin Trust (NASDAQ:IBIT), an unprecedented success. Since launching in January, IBIT has accumulated a remarkable $18.4 billion in assets under management (AUM). IBIT reached $10 billion in AUM in just 37 days, becoming the fastest ETF to reach this milestone. IBIT’s remarkable success shows the power of the BlackRock machine in action.

BlackRock has also applied for a spot on Ethereum (ETH-USD) ETF, and given the success of IBIT, it seems likely that BlackRock’s entry will be one of the leading vehicles in this space, if not the dominant player as well.

As cryptocurrency grows in popularity, BlackRock is well-positioned to benefit from this trend by offering institutional and retail investors ETFs and other products that provide exposure to assets such as Bitcoin and Ethereum. These ETF formats may be preferable for many investors due to reasons including familiarity, convenience, security, and regulatory considerations.

It’s important to note that today, crypto only makes up a small portion of BlackRock’s business. But that also makes it a smart way for investors to gain access to the space. It has a lot to offer without crypto and doesn’t need it to succeed, so the downside presented by its crypto exposure is fairly limited, but the upside potential is significant.

Below market valuation

Despite its dominant business model and attractive long-term growth prospects, BlackRock trades at a reasonable multiple of 19.3 times consensus 2024 earnings estimates. While this doesn’t necessarily make BlackRock a foolproof company, stock of value in the eyes of traditional value investors, it is a reasonable multiple that is well below the market average. The S&P 500 (SPX) currently trades at 24.2 times earnings and 22.7 times forward earnings.

This reasonable multiple leaves plenty of upside room for investors, while perhaps adding a bit of downside protection in a turbulent market.

Increasing dividend

In addition to this reasonable valuation, BlackRock also offers investors a decent dividend payout with a yield of 2.6%. As is the case for value investors, this isn’t necessarily a yield that income investors will be excited about, but it is much higher than the average yield on the S&P 500, which currently stands at just 1.3%. Plus, this dividend helps compound the stock’s total returns over time.

BlackRock is also an attractive company dividend growth stocks. Not only has it paid dividends for 20 consecutive years, it has also increased its dividend for 14 consecutive years at a compound annual growth rate (CAGR) of 9.5% over the past five years.

As the company continues to grow and increase its profits over the years, I expect it to continue to increase its dividend payout over time, making the future yield on the cost of the shares much higher for investors who are buying the shares at current levels.

Are BLK shares a good buy, according to analysts?

Turning to Wall Street, BLK earns a Moderate Buy consensus rating based on 11 Buy, two Hold and no Sell ratings assigned over the past three months. average target price for BLK shares of $911.75 implies a potential upside of 2.3% from current levels.

Investor Takeaway

I am bullish on BlackRock based on its dominant position as a market leader in asset management and its potential to continue benefiting from the growth of the cryptocurrency market now that it has established itself as a key player in the space. Furthermore, its reasonable valuation and growing annual dividend further reinforce my positive outlook.

Disclosure

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Markets

Crypto Markets Rebound as Spot Bitcoin ETFs Attract Massive Inflows

Published

9 months ago

17 July, 2024

FinCrypt Staff

Crypto Markets Rebound Ahead of Early Ethereum ETF Approval

This week saw $722 million worth of Bitcoin spot ETF inflows, including the largest daily inflow in a month.

Cryptocurrency markets rallied on Wednesday, driven by inflows into spot Bitcoin exchange-traded funds (ETFs).

The price of Bitcoin (BTC) is up 3% over the past 24 hours to last change hands at $65,200, according to CoinGecko. Ethereum (ETH) is up 2% and is trading at $3,471. Solana (SUN) and Polkadot (POINT) increased by 4%.

Bitcoin spot ETFs saw $422 million in daily inflows on Tuesday, the highest in the past 30 days, according to Far side data, . The all-time record for a single day was $1.05 billion on March 12.

Among Tuesday’s top contributors, BlackRock’s IBIT led with $260 million in inflows, followed by Fidelity’s FBTC with $61 million. This week has already seen more than $722 million in inflows.

Among the top 100 cryptocurrencies by market cap, Worldcoin (WLD) led with a 28% increase, followed by Helium (HNT) with 20% and Lido DAO (LDO) with 15%.

Worldcoin, a decentralized identity project led by OpenAI CEO Sam Altman, announced is extending the lockups for early investors and team members. This means that tokens will be gradually released through 2029, instead of the original 2027 plan. Token unlocks are generally seen as a negative because they increase supply and early investors can sell their tokens for profit.

Meanwhile, XRP, the token of the XRP Ledger network, jumped 8% after the CME and CF benchmarks introduced new indices and reference rates for XRP.

U.S. stocks faced a downturn on Wednesday. The S&P 500 fell 1%, while the Nasdaq Composite and Dow Jones Industrial Average both fell 2%.

Source

Markets

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Published

9 months ago

17 July, 2024

FinCrypt Staff

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Crypto markets appear to have been taken over by the bulls as major tokens have surged above their crucial resistance zone. Bitcoin surged above $65,000 while Ethereum was above $3,500, and XRP, which had remained passive for quite some time, surged over 40% in the past few days to hit $0.6. The uptrend has been captured in most altcoins, with Worldcoin (WLD), Arweave (AR), and Injective (INJ) leading the rally. Here’s what to expect for these tokens in the coming days.

Worldcoin (WLD) Price Analysis

O Worldcoin Price has been trading inside a descending wedge since it marked a new ATH near $12 in the final days of Q1 2024. The recent price action helped the price break out of the upper resistance of the wedge, breaking above the crucial resistance zone between $2.21 and $2.39. Market sentiments have changed, but technicals suggest that the bulls may remain passive for a while, which could offer some room for a bearish pullback.

The price broke out of the wedge with a significant increase in volume, but the current volume suggests that the bulls have taken a step back. Meanwhile, the RSI is about to reach the upper boundary, which could attract bearish forces. Additionally, the DMI has undergone a bullish crossover, but the decline in the ADX suggests that the rally may remain consolidated above the gains. Therefore, the WLD price is expected to maintain a horizontal consolidation between $3 and $3.3 and trigger a fresh rally to $4.4 during the next bullish rally.

Arweave (AR) Price Analysis

Arweave formed a strong base around $25, which helped the rally trigger a recovery during the bearish attack. Mt. Gox and German terror forced the price to fall below $20. However, the recent price action has brought the altcoin within the bullish range and raised expectations of maintaining a decent uptrend for a few more days.

AR price has hit one of the major resistances around $30 to $31.5, which could act as a strong base once overcome. The buying volume is slowly increasing, which could keep the bullish hopes for the rally high. Moreover, the supertrend has just flashed a buy signal, indicating a clean reversal of the trend. Therefore, AR price seems primed to maintain a healthy uptrend and rally above $40. However, if the bulls maintain a similar trend, making new highs above $50 may not be a tedious task for the bulls.

Price Analysis of Injective (INJ)

Injective price has been showing sharp strength since the beginning of the year and hence, the recent turnaround is expected to revive a good uptrend going forward. The bears engulfed the rally to a large extent, but the recent price action suggests that the bulls have regained their dominance. Therefore, INJ price is expected to maintain a strong uptrend with a bearish interference on the way down.

INJ price has surged above the lower support zone and has registered consecutive bullish candles. Although the volume is below the required levels, the OBV is maintaining a sharp uptrend. Furthermore, the Ichimoku cloud lead span B is heading towards the lead span A and a healthy crossover indicates the start of a new uptrend. However, INJ price may be out of the bears’ reach once it secures the resistance zone between $30.77 and $32.12, which seems to be on the horizon.

Source

Markets

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Published

9 months ago

17 July, 2024

FinCrypt Staff

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Ethereum (ETH) supply on exchanges has hit a 34-month high as the asset’s price surpassed the $3,500 mark.

ETH has risen 2.3% over the past 24 hours and is trading at $3,490 at the time of writing. The second-largest cryptocurrency — with a market cap of $419 billion — briefly touched an intraday high of $3,517 earlier today.

ETH Price, Whale Activity, RSI, and Exchange Supply – July 17 | Source: Santiment

Ethereum’s daily trading volume also increased by 7.6% to reach $19.8 billion.

According to data provided by Santiment, the supply of Ethereum on exchanges has reached $19.52 million ETH. This level was last seen in September 2021, when the asset was trading around the same price.

On the other hand, data from the market intelligence platform shows that the number of whale transactions has fallen by 12% in the last day — falling from 8,730 to 7,629 unique transactions per day.

The move shows that the supply of Ethereum on exchanges has been increasing with small deposits rather than large transactions from whales.

Additionally, the ETH Relative Strength Index (RSI) is currently hovering at the 60-mark, per Santiment. The indicator shows that Ethereum is slightly overbought at this price point, but it may not be in a critical position due to its large market cap.

One of the main drivers of Ethereum price increase is ETH spot expectations ETFs in the US Investment products are scheduled to start trading on July 23rd.

Source

Markets

Bits + Beeps: How to Play the ‘Trump Trade’ in Cryptocurrencies After the Assassination Attempt

Published

9 months ago

17 July, 2024

FinCrypt Staff

Bits + Bips: How to Play the ‘Trump Trade’ in Crypto After the Assassination Attempt

Also, how much will the Fed cut rates (and when)? What will be the inflows into ETH ETFs? And what is the near future for Bitcoin?

Posted on July 17, 2024 at 12:00 PM EST.

Listen to the episode at Apple Podcasts, Spotify, Capsules, Source, Podcast Addict, Pocket molds, Amazon Musicor on your favorite podcast platform.

In this episode of Bits + Bips, hosts James Seyffart, Alex Kruger and Joe McCann, joined by guest Jack Platts, dive into the market reaction to the recent assassination attempt on former President Donald Trump, analyzing how this event will influence the 2024 US presidential election and the cryptocurrency markets.

They also cover potential rate cuts: Could there be a cut in July? How big could the September rate cut be? Could the decision be influenced by the upcoming election?

They also give their predictions on what percentage of BTC ETF inflows the ETH ETFs will reach, and James talks about what he expects for Grayscale’s ETHE (hint: his outlook would be positive for ETH).

Finally, they delve into what’s next for Bitcoin as the German government runs out of BTC and Mt. Gox distributions begin. Just now?

Program Highlights:

Whether Trump’s shooting decided the election and whether the event caused a “flight to safety”
How election markets are becoming a place to watch election probabilities and whether cryptocurrencies “lean right”
Whether rate cuts will occur in July or September and by how much they will cut: 25 bps or 50 bps
How Joe sees the relationship between global liquidity cycles, rate cuts, and the potential rise of Bitcoin
What are the new updates about Ethereum ETFs and their expected launch?
Why Solana Hasn’t Performed Significantly Better Since Trump News
What Market Breadth Indicates About the Current Market Rally and the Impact of Rates on Small Caps
Everyone’s predictions on ETH ETF inflows and how much outflow we’ll see on Grayscale’s ETHE
What’s Next for BTC After German Government Exits Bitcoin and Mt. Gox Giveaways Starting This Week