Cryptocurrency Prices Remain Volatile, But That Won’t Last Forever

Bitcoin and other cryptocurrencies have been dogged by price swings over the last few weeks, down 1.4% to $58,804 and having dropped about 10% since August 1. Other cryptocurrencies are also experiencing turmoil, such as Ether and Solana, which fell 4% to $2,570 and 6.6% to $146, respectively, as reported by ETF Market Canada.

Despite This the First Half of 2024 Saw Higher Returns for Crypto and Tech ETFs

Despite their volatility, cryptocurrency and tech ETFs have done reasonably well in the first half of 2024, with the top 20 Canadian ETF list for the year being dominated by cryptocurrency ETFs.

For now, the standout performers in this category include the Fidelity Advantage Bitcoin ETF (FBTC): up 57.39% year-to-date, as of June 28th. Other leading ETFs include the CI Galaxy Ethereum ETF (ETHX.B): up 50.57% year-to-date as of June 28th.

Cryptocurrency market fluctuations

Information Technology ETFs Shine

Apart from cryptocurrencies, the information technology sector, particularly semiconductor ETFs, have shown impressive gains. The semiconductor subsector has been energized by the growth potential in artificial intelligence. Nvidia led the charge with a stunning 156.47% increase over the past six months.

AI innovation

How Solana Is Making Waves in the Crypto Space

Solana is a high-performance blockchain platform that provides fast, secure, and scalable decentralized applications (dApps) and cryptocurrencies. Unlike Bitcoin, which was designed as a payment system, Solana is built for high-performance blockchain applications. Its focus on fast transaction speeds and low costs makes it attractive for developers. As reported by Binance, as of July 31, 2024, Solana’s market capitalization is USD 84.15B.

Is Solana the Next Big Cryptocurrency to Hit the ETF Market?

In the U.S., no Solana-specific ETF is currently available. However, two issuers have filed for a spot Solana ETF: VanEck on June 27 and 21Shares on June 28. In Canada, 3iQ has announced that it has filed a preliminary prospectus with the securities regulatory authorities to launch North America’s first Solana exchange-traded product, the Solana Fund (Ticker: QSOL).

Investors eagerly awaiting new Solana ETF

What to Watch Out for in the Crypto Space

More macroeconomic data could spell further uncertainty for the cryptocurrency. Wednesday’s CPI report will give traders an update on how the Federal Reserve’s battle against inflation is going, while Thursday’s retail sales data will offer insight into how the U.S. consumer is holding up amid worries about a potential recession. Earnings from Walmart and Home Depot could also help markets gauge consumer health.

Key Takeaways

The first half of 2024 has highlighted the volatile yet rewarding nature of cryptocurrency investments and the robust growth in the technology sector, particularly semiconductors. Investors in these segments have enjoyed significant returns, reflecting the evolving landscape of the ETF market.