On the night of May 23-24, spot ETFs for ether were approved in the United States, but the cryptocurrency did not continue to grow after that. What about the stocks of the largest crypto companies?

Unexpected ETF approval

A week before the US Securities and Exchange Commission (SEC) gave the green light to spot ETFs for ether, Bloomberg analysts predicted no more than a 25% chance of such a decision. However, within a week everything changed. The expected 25% turned into a real 100%.

Obviously, this event should be positive for Ethereum followers. What about stock investors? How has the price of securities of the largest companies that hold, mine or accept Bitcoin as a means of payment changed? Let's look at the top 10 such companies.

Riot Blockchain (NASDAQ: RIOT)

Tenth place is occupied by Riot Blockchain, a mining company from Colorado with a market capitalization of $2.99 ​​billion. Since the approval of spot ETFs for ether, only two trading sessions have passed so far, and as a result, RIOT shares decreased by 5.21%.

In the second half of May, the correction that began at the end of April was stopped. This should have been supported by a strong first quarter report. In accordance with it, the company set a number of record indicators for itself: adjusted EBITDA amounted to $245.7 million, net income — $211.8 million, and earnings per share — $0.82.


Source: tradingview.com

Galaxy Digital Holdings (TSX:GLXY)

In ninth place is Galaxy Digital Holdings with a capitalization of $3.52 billion. Its activities are quite diverse and include mining, financial services, consulting, etc. In the two days of trading since the Ethereum spot ETF was approved, shares of Galaxy Digital Holdings rose 0.62%.


Source: tradingview.com

CleanSpark (NASDAQ:CLSK)

In eighth place is CleanSpark with a market capitalization of $4.01 billion. Its main activity is mining based on renewable energy sources. Over the past three months, CleanSpark shares have been flat between $13.7 and $24.7.

In general, there was no unusual reaction to the approval of spot ETFs for ether: first the price of securities fell by 7.32%, and then rose by 3.16%. Further movements in stocks will be determined rather by fundamental factors. For example, the positive effect from the report for the first quarter of 2024 will likely be reflected in the price. According to it, the company increased its operating capacity by 60% and increased its hashrate to 17 EH/s.


Source: tradingview.com

Marathon Digital Holdings (NASDAQ: MARA)

In seventh place is a mining company from Florida, Marathon Digital Holdings, with a capitalization of $5.99 billion. After the approval of spot ETFs for ether, its shares lost 1.16%. It can be said that the news about exchange-traded funds had no impact on Marathon Digital's securities. But what can really push the shares up is the agreement signed by the company with the Ministry of Energy and Petroleum of Kenya regarding renewable energy sources for $80 million.


Source: tradingview.com

MicroStrategy (NASDAQ: MSTR)

Sixth place is reserved by one of the largest holders of Bitcoin – MicroStrategy with a capitalization of $29.88 billion. The change in the value of the company's shares after the approval of spot ETFs for ether amounted to a meager 0.94%. May 2024 turned out to be quite successful for MicroStrategy investors: securities soared in price by more than 65%, and the organization itself was added to the MSCI World index.


Source: tradingview.com

Block (NYSE: SQ)

In fifth place is Block (formerly Square) with a market capitalization of $40.93 billion. After the announcement of the SEC's decision to approve spot ETFs for ether, the company's shares fell by 2.15%. However, this is unlikely to be the reason for the sales. The company has been experiencing difficulties throughout May. This is due to the actions of the prosecutor's office, which suspects Block of illegal actions on the Square and Cash App platforms.


Source: tradingview.com

Grayscale Bitcoin Trust (NYSE: GBTC)

The fourth place in the top is occupied by the Bitcoin spot ETF from Grayscale with a capitalization of $42.6 billion. The approval of exchange-traded funds for ether had almost no effect on its shares (shares): the decrease was only 0.19%. At the beginning of May, GBTC was finally able to show a daily cash inflow: on May 3, it amounted to $63 million. Before that, starting in January, the fund experienced only outflows.


Source: tradingview.com

Coinbase (NASDAQ: COIN)

In third place is the crypto exchange Coinbase with a capitalization of $58.35 billion. Like almost all representatives of this rating, its shares reacted with a decline on the day of the adoption of spot ETFs for ether. However, unlike others, Coinbase shares showed such rapid growth on May 24 (8.59%) that they managed to cover the fall on May 23 (5.46%) and go into positive territory. Interestingly, the decline occurred against the backdrop of the crypto exchange’s defeat in court in the case of the Dogecoin hoax. At the same time, the growth occurred against the backdrop of reports that XRP trading had resumed on Coinbase in New York State.


Source: tradingview.com


Second place in today's top is occupied by the PayPal payment system with a market capitalization of $64.47 billion. This company is not a miner or an investor in cryptocurrency. But it provides functionality for transferring, storing and purchasing digital assets. On the news of the approval of an ETF for ether, the company's shares broke through at least 2.5 months ago. At the same time, the decrease itself turned out to be about 1.5%.

Overall, PayPal has seen a negative trend since April 30th. Since that day, the stock has lost about 12%. However, many investors consider it undervalued. Cathie Wood, founder of investment firm ARK Invest, continues to grow her position in PayPal. It is obvious that she expects the situation to change for the better soon.


Source: tradingview.com


The top 10 is headed by Tesla with a capitalization of $571.63 billion. Although its main activity is electric cars, it is a major investor and holder of Bitcoin. Since the approval of spot Ethereum ETFs, Tesla has lost about 1.5%. However, in general, the situation with the securities of Elon Musk’s company has been positive since the second half of April (an increase of 25%). This is largely due to the fact that things are going well with the Tesla Semi model.


Source: tradingview.com


Thus, the approval of spot Ethereum ETFs had virtually no impact on crypto stocks. All securities fell in price on May 23, and most of them rose on May 24. Overall, the decline did not even reach 6%. In most cases, it was explained by internal problems of a particular business.

This material and the information contained herein do not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.