3 Crypto Stocks to Watch as Ethereum Surges After Regulatory Victory

While the price of Bitcoin (BTC) has remained steady since the April halving, Ethereum (ETH) has quickly fallen off the blocks in 2024. The ETH price is hovering around $3,500, increasing by 56.4% since the beginning of the year. June 19. Ethereum is an open, decentralized software platform based on blockchain.

ETH’s activity as an open-source blockchain with smart contract functionality, primarily in the realm of decentralized finance, has given it even greater importance beyond the label of being the world’s second-largest cryptocurrency. It functions more like a network that is constantly updated and maintained by validators who receive ETH as compensation for their contributions.

However, the most recent systems update, the Dencun update in March, did not increase inventory as expected. The update was touted to make transactions on these blockchains cheaper and stimulate mainstream consumer demand. Time will tell whether the update will ultimately have an impact. There was also tremendous growth from new institutional investments, with traditional financial giants following up their successful BTC spot offerings in ETFs using ETH.

The conclusion of the SEC’s Ethereum 2.0 investigation on June 18 is also considered a major victory for the entire cryptocurrency industry. Not only does it increase investor confidence in ETH, but it sets a precedent for cryptocurrency regulation. If one were to interpret the findings of the investigation, it could be interpreted that the sale of ETH is not considered a securities transaction. This news caused the price of ETH to increase by over 3% during the session.

Ether, with ETH’s upgrade and application momentum and this significant regulatory win, looks poised for significant growth. In fact, it could cross the $10,000 mark before the end of the year. So with Ethereum already starting to improve the market, it might be wise to keep an eye on stocks exposed to this open-source decentralized blockchain platform. Here’s the choice. They are currently sporting a Zacks Rank #1 (Strong Buy), #2 (Buy), or #3 (Hold). You can see complete list of today’s Zacks #1 ranked stocks here.

HIVE Digital Technologies Ltd. HIVE: This cryptocurrency mining company, operating in Canada, Sweden and Iceland, mines and sells digital currencies, including Ethereum Classic.

HIVE Digital’s expected earnings growth rate for the current year is 66.5%. The Zacks Consensus Estimate for current-year earnings has not changed over the past 60 days. HIVE Digital is currently sporting a Zacks Rank of #3.

CME Group Inc. CME: This company operates as one of the world’s largest futures exchanges and offers a wide range of derivatives contracts and various solutions for investing in cryptocurrencies such as Ethereum.

CME Group’s expected earnings growth rate for the current year is 4.1%. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the past 60 days. CME Group is currently sporting a Zacks Rank of #3.

BlackRock, Inc. BLK: This public company is one of the world’s largest investment managers and one of the first traditional market companies to join the Bitcoin ETF race in June 2023 and received approval in January this year. BLK also entered the ETH spot ETF space and listed it on an exchange in May.

BlackRock’s expected earnings growth rate for the current year is 9.2%. The Zacks Consensus Estimate for current-year earnings has improved 0.2% over the past 60 days. BlackRock is currently sporting a Zacks Rank of #3.

Why didn’t you check out Zacks’ Top Stocks?

Since 2000, our best stock-picking strategies have thwarted the S&P’s average annual gain of +6.2. Surprisingly, they skyrocketed to an average profit +46.4%, +49.5% AND +55.2% per year. Today you can access their live picks at no cost or obligation.

See Free Stocks >>

Want the latest recommendations from Zacks Investment Research? Today you can download the top 7 stocks for the next 30 days. Click to get this free report