Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) is enjoying a solid start to the week’s trading session so far this Monday. At the time of writing, the ASX 200 is up 0.1% to 7,369 points.

So let’s dive deeper and check out the ASX 200 shares that are topping the trading volume charts so far today, according to investing.com.

The 3 most active ASX 200 shares by volume today

Beach Energy Ltd (ASX: BPT)

ASX 200 energy share Beach is our first company to check out today. Beach Energy has seen an impressive 11.86 million of its shares bought and sold so far this Monday. This elevated trading volume is likely the result of the strong buying pressure we have seen for this company so far today.

At the time of writing, Beach shares are up a healthy 2.21% to $1.48 a share. As my Fool colleague Kerry looked into this afternoon, this appears to be a response to rising crude oil prices, which are now trading at multi-year highs.

Pilbara Minerals Ltd (ASX: PLS)

Our second ASX 200 share today is no stranger to high trading volumes. Lithium producer Pilbara has seen a hefty 17.45 million of its shares find new owners so far this Monday. There are no major news or announcements out of Pilbara today as of yet, so we can probably put this high volume down to the outsized gains Pilbara is also savouring today.

This company is presently up 2.4% to $2.13 a share, outperforming the broader ASX 200 alongside Beach Energy. The Pilbara share price is now up more than 7% over just the past 5 trading days.

South32 Ltd (ASX: S32)

Our final and most traded ASX 200 share so far today is diversified miner South32. This old flame of BHP Group Ltd (ASX: BHP) has seen a whopping 32.03 million of its shares swap hands thus far on Monday. And the song remains the same. This move can likely be put down to the large share price movement South32 has benefited from today.

The miner is currently up a pleasing 4.45% to $3.99 a share. My Fool colleague Brooke delved deeper into today’s performance for South32 this morning, but we have likely found the reason behind today’s elevated trading volume with this big move upwards.

The post These 3 ASX 200 shares are topping the volume charts this Monday appeared first on The Motley Fool Australia.

More reading

• Why is the WAM Capital (ASX:WAM) share price sliding 4% today?
• Why is the South32 (ASX:S32) share price lifting on Monday?
• ASX 200 energy shares open higher as oil prices double in past 12 months
• 2 gold ASX shares experts are loving right now
• ASX 200 (ASX:XJO) midday update: Aristocrat’s $5bn acquisition, Zip falls on Q1 update

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Orocobre Limited (ASX: ORE)

According to a note out of Ord Minnett, its analysts have retained their buy rating and lifted their price target on this lithium miner’s shares to $10.40. The broker believes recent weakness in the Orocobre share price due to profit taking could be a buying opportunity. Especially given how lithium prices have continued to rise. The Orocobre share price is trading at $9.05 on Monday afternoon.

Redbubble Ltd (ASX: RBL)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $6.50 price target on this ecommerce company’s shares. The broker notes that driving customer loyalty has become a core strategy for Redbubble. Morgan Stanley is pleased with this and believes that its successful execution could help the company achieve 20% to 30% per annum revenue growth over the medium term. The Redbubble share price is fetching $3.84 on Monday.

Transurban Group (ASX: TCL)

Analysts at Morgans have upgraded this toll road operator’s shares to an add rating with an improved price target of $14.82. According to the note, after adjusting its valuation approach, Morgans has unearthed an additional source of incremental value. In addition to this, it feels the current Transurban share price is an attractive entry point for investors following the completion of its retail entitlement offer. The Transurban share price is trading at $13.74 on Monday afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• 2 ASX 200 dividend shares to buy now
• Top brokers name 3 ASX shares to buy next week
• Top broker tips Redbubble (ASX:RBL) share price to jump 22%
• Why ASX lithium shares are booming on Thursday

Motley Fool contributor James Mickleboro owns shares of Orocobre Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Wesfarmers Ltd (ASX: WES) share price is having a month to forget.

At the time of writing, shares in the retail conglomerate are trading for $54.95 – up 0.33%. Over the month, however, it’s been less cheery for the company – down 3.48%. For context, despite how turbulent it may have felt, the S&P/ASX 200 Index (ASX: XJO) has actually increased 1.74% over the same time.

Let’s take a closer look at what’s going on.

What’s up with Wesfarmers?

The first major story that had a negative impact on the Wesfarmers share price was the news Sigma Healthcare Ltd (ASX: SIG) had also entered the fray to take over Australian Pharmaceutical Industries Ltd (ASX: API) with a mostly scrip bid for the retail pharmacist.

Sigma put in a bid with an implied value of $1.57 per share – or $773 million for the company. As Motley Fool previously reported, Sigma put a higher bid to API’s board than Wesfarmers, albeit a mostly scrip one.

Sigma’s proposal would see API’s shareholders walking away with 35 cents of cash and 2.05 Sigma shares per API share they held at the time of the proposed merger. This valuation is based on Sigma’s share price at the time the offer was made.

Since that time, Wesfarmers has acquired a nearly 20% stake in API, buying out the portion owned by Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) for $1.38 per share. It has also agreed to pay Sol Patts any additional funds owed to it should its proposed merger with API be successful.

The Wesfarmers share price rose on this strong indication it would be successful in buying API.

What else is affecting the Wesfarmers share price?

Lockdowns are coming to an end in Australia. Sydney left its 15 weeks of COVID restrictions last Monday. Melbourne will leave on Thursday and the ACT is slowly exiting its stay-at-home orders.

Lockdowns have historically been good news for the Wesfarmers share price. The thinking goes with everyone stuck at home and their consumption options limited, people will spend their money on what they can and that includes shopping (either online or in-person) at Bunnings, Kmart, or Officeworks – all Wesfarmers brands. Wesfarmers shares rocketed 11% during the latest delta outbreak.

With lockdowns coming to an end, investors may be seeing the time of supercharged revenues also coming to an end – and thus want to sell on a high.

This could partially explain the falling Wesfarmers share price. Of course, correlation does not equal causation.

Wesfarmers share price snapshot

Over the past 12 months, the Wesfarmers share price has increased 14.0%. Year-to-date, it is up 6.74%. Both of these figures are lower than the growth rate of the ASX 200.

Wesfarmers has a market capitalisation of about $62 billion.

The post Here’s why the Wesfarmers (ASX:WES) share price is down 4% in a month appeared first on The Motley Fool Australia.

More reading

• What’s up with the Wesfarmers (ASX:WES) share price today?
• How did the Wesfarmers (ASX:WES) share price perform in the last quarter?
• Wesfarmers (ASX:WES) share price dips as API battle heats up
• Wesfarmers (ASX:WES) share price struggles amid latest API speculations
• Can the Wesfarmers (ASX:WES) share price reach $60 by Christmas?

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 300 Index (ASX: XKO) is advancing today, adding on Thursday’s 0.57% and Friday’s 0.69% gain.

At the time of writing, the ASX 300 is up 0.24% to 7,387.1 points. It’s worth noting that in the past month, the index has mostly recovered from its 3.5% loss.

Here are some of the top movers on the ASX 300 today.

Paladin Energy Ltd (ASX: PDN)

The Paladin share price is on the move, up 8.64% to 88 cents despite no new company announcements.

The uranium company’s shares are continuing to accelerate following positive investor sentiment in the sector. This has led to fellow peers such as Boss Energy Ltd (ASX: BOE) and 92 Energy Ltd (ASX: 92E) also punching higher.

A strong uptick in oil and gas prices has led nuclear energy as a possible solution as a secure, emission-free power source.

The spot price for uranium has soared over 60% in a year, reaching US$47.20/lb at the time of writing.

Vulcan Energy Resources Ltd (ASX: VUL)

Following suit is the Vulcan share price, up 8.56% to $12.55.

The clean-lithium developer released an announcement in regards to a new binding offtake agreement with leading materials technology company, Umicore.

Under the deal, Umicore will purchase up to 42,000 tonnes of battery-grade lithium hydroxide from Vulcan over a 5-year term. Pricing for the key ingredient will be based on market prices on a take-or-pay basis.

Zimplats Holdings Ltd (ASX: ZIM)

Making headlines again is the Zimplats share price, up 7.48% to $23.84.

The mining company hasn’t provided the market with any new information in the past few weeks.

A possible catalyst for the upward trend could be the improvement in platinum prices over the past few weeks.

And the ASX shares in decline?

HomeCo Daily Needs REIT (ASX: HDN)

Heading south is the HomeCo Daily Needs share price, down a hefty 7.79% to $1.48.

The property company’s shares are in reverse after announcing plans to merge with Aventus Group (ASX: AVN).

The takeover will see Aventus shareholders receive 2.2 HomeCo Daily Needs shares for every Aventus share owned. In addition, shareholders will also receive either $0.285 cash or 0.038 Home Consortium Ltd (ASX: HMC) shares.

Should the merger be approved by Aventus shareholders and other customary conditions, the implementation date will be in mid-February 2022.

Sezzle Inc (ASX: SZL)

Also running at a loss is the Sezzle share price, down 5.46% to $5.89.

Investors have sold off the buy-now-pay-later (BNPL) company’s shares after registering a 20% gain just 2 weeks ago.

Earlier this month, United States retail giant Target announced the launch of a BNPL offering in partnership with Sezzle. This service will be used to attract customers with affordable payment solutions.

Target is the eighth largest retailer in the United States and has a network of more than 1,909 stores.

The post Which ASX 300 shares are leading the way on Monday? appeared first on The Motley Fool Australia.

More reading

• Why MyDeal, Senex, Superloop, and Vulcan shares are surging higher
• Why ASX uranium shares are rallying on Monday
• Aventus (ASX:AVN) share price shoots 9% higher on HomeCo merger plans
• Why the Vulcan (ASX:VUL) share price is jumping 11% on Monday
• Which ASX 300 shares are the major movers on Thursday?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The high flying share price of Hazer Group Ltd (ASX: HZR) is pushing upwards on Monday. Shares in the hydrogen production company are front and centre today after the release of its quarterly activities report.

At the time of writing, the Hazer share price is fetching $1.45, up 3.93%. This boost puts the company’s year-to-date performance at 82%.

This brings us to the information contained in Hazer’s report for the quarter ending 30 September 2021. It was a busy time for the ASX-listed small cap. So, let’s delve into what occurred during Q1 FY22.

Hazer share price lifts on progress

Investors are displaying optimism following Hazer’s update, as the daily share volume surpasses the average amount traded. Presently, more than 1.7 million shares have swapped hands during Monday’s session.

Today’s report shares Hazer’s progress on its Commercial Demonstration Project (CDP), under development at the Woodman Point waste-water treatment facility. Following the commencement of site works in March this year, the company has completed site civil preparation and civil construction works.

The project is moving forward to the mechanical, instrument, and electrical works. However, Hazer has revised the project schedule due to delays caused by supply issues for specialist high-temperature materials. As a result, the commissioning of the project will move to the first quarter of the 2022 calendar year.

A quick recap, the CDP is a low-emission hydrogen production facility that is expected to produce 100 tonne per annum. The biogas generated by the treatment plant will be used as feedstock to produce hydrogen and graphite. Given the recent trend in hydrogen power, this development by Hazer has helped push its share price higher.

At this stage, Hazer is forecasting a final cost of $21 million to $22 million for the sizeable engineering project. Although, the company noted that it continues to see cost pressures across materials, equipment, labour, and freight.

Capitalising on the booming interest, Hazer is progressing an engineering study with Chiyoda Corporation which will feed into the concept study for a Hazer plant capable of 2,500 tonne per annum. Furthermore, the company will use this study to advance discussions with potential collaborators across Japan, Europe, Asia, North America, and more.

What’s the cash position of Hazer Group?

At the end of the quarter, the company maintained $27.3 million in cash and cash equivalents. Part of this stash is $5.4 million in grant proceeds from the Australian Renewable Energy Agency (ARENA). Hazer managed to fulfil the milestone conditions to unlock $1.77 million of this capital.

Regarding cash flow, net operating cash outflows of $1.44 million were recorded during the quarter. Meanwhile, net cash inflows from financing activities amounted to $8.67 million – $7 million of which came from the issue of new shares.

Lastly, based on the current Hazer share price, the company commands a market capitalisation of $231 million.

The post Why the Hazer (ASX:HZR) share price is lifting today appeared first on The Motley Fool Australia.

More reading

• How fast is green hydrogen growing and which ASX shares could benefit?
• Here’s why ASX hydrogen shares are leaping higher today
• Why are ASX hydrogen shares in the spotlight on Monday?

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is having a good, albeit bumpy, start to the trading week this Monday. At the time of writing, the ASX 200 is up 0.18% to 7,375.6 points after an initial stumble into negative territory soon after open this morning.

But one ASX share isn’t sharing in this positive sentiment today. That would be the WAM Capital Ltd (ASX: WAM) share price.

WAM shares are currently down a nasty 4.58% from Friday’s close to $2.29 a share, at the time of writing. That’s a pretty steep fall for a Listed Investment Company (LIC) not known for its volatility.

So what’s going on with WAM Capital, one of the ASX’s largest LICs, today?

WAM gets an ASX whamming

Well, there has been some movement at the station for WAM today. This morning, Wilson Asset Management (the WAM in WAM Capital) sent shareholders a notice that this LIC has “acquired all the issued capital of an unlisted investment company with net assets of approximately $36.3 million”. No further details were given about this “unlisted investment company”.

This acquisition has been paid for with new WAM Capital shares. The LIC released an ASX notice this morning confirming that 16,678,217 additional shares have been issued.

But $36.3 million is little more than a drop in the ocean for a company with a market capitalisation north of $2 billion.

Don’t worry, it’s probably just a dividend…

Instead, the real culprit for today’s steep drop is likely to be WAM Capital’s upcoming ASX dividend. Yes, WAM shares have today traded ex-dividend for the LIC’s upcoming final dividend payment. WAM Capital will be shelling out 7.75 cents per share, fully franked, on 29 October. But only shareholders who held WAM shares before today will be eligible to receive this payout.

As such, the rough value of this dividend has been drawn out from the WAM Capital share price today, since new shareholders won’t enjoy this benefit. It’s probably the best reason there is to have one of your shares fall in value.

Yes, a ~4% drop is a large one for WAM Capital. But it does reflect the large value of this upcoming payment. On Friday’s closing share price, 7.75 cents per share equates to a yield of 3.14% (or 6.49% annualised). With the value of this LIC’s full franking, these yields gross-up to 4.49% and 9.27% respectively. With such a hefty dividend payment going out the door, it’s no surprise that we see a big drop in the value of WAM Capital shares today.

At WAM Capital’s current share price of $2.29, this ASX LIC has a market capitalisation of $2.02 billion and a dividend yield of 6.74%.

The post Why is the WAM Capital (ASX:WAM) share price sliding 4% today? appeared first on The Motley Fool Australia.

More reading

• 2 gold ASX shares experts are loving right now
• ASX 200 (ASX:XJO) midday update: Aristocrat’s $5bn acquisition, Zip falls on Q1 update
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small gain. At the time of writing, the benchmark index is up 0.2% to 7,375.6 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are surging higher:

Mydeal.Com Au Ltd (ASX: MYD)

The MyDeal share price has jumped over 10% to 81.5 cents. Investors have been fighting to get hold of the ecommerce company’s shares after it delivered a very strong first quarter update. MyDeal reported record quarterly gross sales of $68.5 million, up 49% quarter-on-quarter and 22.6% year on year. Key drivers of this growth were a 38.8% increase in active customers to 929,461 and high levels of returning customers.

Senex Energy Ltd (ASX: SXY)

The Senex share price is up 15% to $4.38. This morning the energy company revealed that Korean giant POSCO has tabled a $4.40 per share takeover approach. Due diligence has been granted to provide POSCO with additional time to assess a further revised proposal at a price higher than $4.40 per share.

Superloop Ltd (ASX: SLC)

The Superloop share price has rocketed 20% higher to $1.16. This follows news that the telco is selling its Hong Kong operations, as well as select Singapore assets for $140 million. According to the release, Superloop has entered a binding agreement with funds affiliated with Columbia Capital and DigitalBridge Investment Management. The release notes that the sale price is a 30% premium above the assets’ current carrying value.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan Energy share price has jumped 10% to $12.72. Investors have been buying the lithium developer’s shares after it announced a new binding offtake agreement. According to the release, Vulcan has signed a binding lithium hydroxide offtake agreement with Umicore. It is a leader in cathode materials production used in lithium-ion batteries for electrified transportation. The deal is for five years from 2025 and for a total of 28,000 tonnes to 42,000 tonnes of battery grade lithium hydroxide.

The post Why MyDeal, Senex, Superloop, and Vulcan shares are surging higher appeared first on The Motley Fool Australia.

More reading

• Superloop (ASX:SLC) share price soars 21% following asset sale
• Senex (ASX:SXY) share price jumps 16% to multi-year high amid takeover talks
• MyDeal (ASX:MYD) share price jumps 11% on record first quarter update
• Why the Vulcan (ASX:VUL) share price is jumping 11% on Monday
• Why the Vulcan (ASX:VUL) share price is in a trading halt

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended SUPERLOOP FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It’s been a big month for the Webjet Limited (ASX: WEB) share price despite no news having been released by the company. However, the travel sector has had several recent victories.

At the time of writing, the Webjet share price is $6.50, 1.09% higher than its previous close and 11.5% higher than it was this time last month.

So, what exactly has sent Webjet’s stock soaring? Let’s take a look.

What’s driving the Webjet share price lately?

The Webjet share price has had 3 days of excellent trade over the past month, each seemingly spurred by outside influences.

The first was on 23 September when the Webjet share price surged 5.5% higher.

That same day, the United States government announced its plan to scrap travel restrictions for arrivals from 33 countries. The catch is, of course, international travellers arriving in the United States must be fully inoculated against COVID-19.

The next time Webjet’s shares recorded a notable gain came just days later. The company’s stock lifted 5.2% on 27 September.

That was also the first ASX trading day after Prime Minister Scott Morrison announced Australia’s international borders should reopen before Christmas.

 Finally, Webjet’s third-best session of the last 30 days was its most recent.

On Friday, the Webjet share price soared 4% higher after New South Wales Premier Dom Perrottet announced the state will soon scrap quarantine for vaccinated international arrivals.

The initial idea was the state would become Australia’s tourism mecca. That is, until other states catch up with its vaccination rate. Currently, 80.8% of those eligible to receive a COVID-19 vaccine in New South Wales have had both doses. That vaccination rate is only bested by the ACT.

However, Morrison soon overruled Perrottet’s plans. He announced the federal government would only be allowing Australian citizens and residents into the country for the time being.

The post Why has the Webjet (ASX:WEB) share price taken off 11% in the past month? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• These 2 ASX shares have been named as good opportunities
• ASX travel shares on watch as US border reopens
• Here’s why the Webjet (ASX:WEB) share price is lifting 4% on Friday
• Top broker sees 15% upside in the Webjet (ASX:WEB) share price

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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While most Australians are sleeping tonight, the United States Securities and Exchange Commission (SEC) could greenlight the first US Bitcoin (CRYPTO: BTC) exchange traded fund (ETF).

As Bloomberg reports, people familiar with the matter, who wished to remain anonymous, said, “The regulator isn’t likely to block the products from starting to trade…”

And this could happen as early as Monday, US time.

To be clear, unlike Bitcoin ETFs already trading on Canada’s Toronto Stock Exchange and several European exchanges, the first US ETFs will be futures based.

Why a futures based US Bitcoin ETF?

Unlike direct Bitcoin ETFs intended to track the spot price, the futures ETFs aim to track the Bitcoin price via futures contracts supervised by the Chicago Mercantile Exchange. That, as we’ll look at below, means the ETF price may not always move directly in line with the real time price movements.

The SEC has previously ruled against authorising direct Bitcoin ETFs, with concerns ranging from the digital token’s notorious volatility, potential liquidity issues, and fears over fraud.

But, as Bloomberg notes:

The proposals by ProShares and Invesco Ltd. are based on futures contracts and were filed under mutual fund rules that SEC Chairman Gary Gensler has said provide “significant investor protections”.

ProShares looks set to be first out of the gate, potentially trading on US markets on Monday (overnight Aussie time).

ProShares and Invesco may also be joined on US exchanges by offerings from VanEck and Valkyrie. Meaning investors could have as many as 4 US-listed Bitcoin ETFs to choose from by the end of October.

Exposure with an element of trust

When it comes to whether to invest in Bitcoin ETFs versus buying the actual token itself, there are a number of factors to consider.

Among the positive factors for choosing the ETF, is trust. There have been many stories about investors losing their Bitcoin when crypto exchanges are hacked. Or others where investors forget their digital keys and lose access to their holdings forever.

According to Eric Balchunas, ETF analyst for Bloomberg Intelligence, “There’s an amount of trust and confidence people have in an SEC-regulated fund structure that trades like an equity.”

Then there are investors who are uncomfortable with some of the technological aspects of actually buying and selling Bitcoin. They may not understand what a digital wallet is, much less how one works.

Nate Geraci, president of the ETF Store, adds that an element of simplicity, particularly surrounding taxes, adds appeal to Bitcoin ETFs:

If I’m an investor and I have a Charles Schwab account or Fidelity account, I may want all of my holdings under one roof. I may want tax reporting and performance reporting all in one place versus having that at another broker.

Geraci did advise investors be patient, adding, “Maybe it’s best to give it some time. I don’t anticipate any issues with Bitcoin futures ETFs, but investors have waited since 2013 for these products to come to market. What’s waiting a few more days to ensure everything is functioning properly?”

The case against the futures based Bitcoin ETF

Having looked at the pros, here are some of the cons the experts are concerned about when it comes to the pending US Bitcoin ETFs.

Firstly, costs.

While a 1% annual fund management fee may seem small, these costs do add up. Particularly over time, when that 1% per year is no longer compounding for year over time.

According to Bloomberg Intelligence analysts Eric Balchunas and James Seyffart, “Traders may use the new Bitcoin ETFs, but we expect their appeal to longer-term investors and advisers to be more muted because of the costs to roll futures.”

Then there’s the added complexity of trading futures, whether they be soy, crude oil, or cryptos.

“Since Bitcoin itself is very liquid, I think individual investors should stick with that when they first start trading. Leave the futures to the sophisticated institutional investor for now,” said Matt Maley, chief market strategist for Miller Tabak + Co.

Maley also echoed Geraci’s advice on patience, saying, “It’s always good to see how any new asset trades before diving in. Given the recent rally in Bitcoin, we could get a ‘sell the news’ reaction for a little while when a Bitcoin ETF launches.”

Finally, while the idea behind the ETF is that SEC regulation should make it less risky, Sylvia Jablonski, chief investment officer for Defiance ETFs, disagrees. “Futures have some risk too. There is a risk that you’re not really getting the best tracking of Bitcoin,” she said.

Proceed with caution – Bitcoin volatility snapshot

Whether it’s a Bitcoin ETF or actual Bitcoin, don’t lose sight of the often wild price moves of the token.

At time of writing Bitcoin is trading for US$61,389 (AU$82,958). That’s up 2% over the past 24 hours and up 12% over the past 7 days.

While those gains sound attractive, and they are, it’s worth having a look back at the highs and lows just over the past 6 months.

On 14 April Bitcoin reached its all-time high of US$64,863. At the time many punters expected the token to keep rising all the way to US$100,000…or beyond.

Instead, it went the other way.

By 20 July the Bitcoin price had tanked to US$29,807. A loss of 56% for any investors buying at the highs and selling at the lows.

So, what’s next for the Bitcoin price and Bitcoin ETFs?

Tune back in 6 months and I’ll let you know!

The post Here are the pros and cons of investing in the pending US Bitcoin ETFs appeared first on The Motley Fool Australia.

More reading

• Why Bitcoin miners are flocking to the US and what this could mean for Australia
• Bitcoin price to US$500,000? Why ARK’s Cathie Woods is doubling down
• ASX set to welcome first cryptocurrency ETF… but there’s a catch
• What happened to the Bitcoin price in the FY22 first quarter?
• Are NFTs a bubble awaiting a pin or the next big investment theme?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Earlier this month, we covered one of the ASX’s newest exchange-traded funds (ETFs). The ETFS Hydrogen ETF (ASX: HGEN) debuted on 7 October and caused quite a stir… for its lack of dramatic flair. By this ETF’s first afternoon on the ASX boards, it had delivered a unit price rise of 0.3%.

But today, it’s time to check back in on this new ETF. It has certainly gained some distance from its first day of trading.

Just as a recap, the ETFS Hydrogen ETF invests in a portfolio of global companies (around 30) that centre on the emerging ‘hydrogen economy’. These companies mostly hail from the United Kingdom, the United States, and South Korea (amongst others).

Some of its largest holdings include Plug Power Inc (NASDAQ: PLUG), Ballard Power Systems Inc (NASDAQ: BLDP), and ITM Power plc (LON: ITM). These come from the Solactive Global Hydrogen ESG Index that HGEN tracks. 

So, how exactly has this exciting new ETF performed since its 7 October ASX float?

ASX hydrogen ETF powers higher

Well, this ETF’s first pricing quotes on the ASX started at around $10.09 per unit back on 7 October. Today, ETFS Hydrogen ETF units are currently (at the time of writing) being priced at $11.28. That’s an increase of 11.8% over what has been little more than a fortnight. Not bad, one could say.

But that’s not where the story ends. This ETFS Hydrogen ETF had quite a dramatic week last week too. On Thursday morning, the ETF spiked from the previous day’s close of $10.94 a unit to a new high of $$12.25 at market open. That unit price is more than 21% above the initial October pricing.

Although HGEN units are now almost 8% below that high watermark at today’s pricing, it’s still worthwhile pointing out that investors enjoyed a near-18% bump in just 2 days.

The ETFS Hyfdrogen ETF charges a management fee of 0.69% per annum.

The post The Hydrogen ETF (ASX:HGEN) share price jumped 18% last week appeared first on The Motley Fool Australia.

More reading

• The ETFS Hydrogen ETF (ASX:HGEN) just debuted on the ASX. How is it going?
• Want to buy ASX shares in hydrogen? Here’s how

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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