Senate Bill behind Energy ETFs Boost
U.S. Senate bill pushes energy related ETFs higher while the ‘Merge’ remains performance booster for Ethereum ETFs tracking.
Ethereum-based ETFs were still dominating Canada’s top-performing ETFs last week while energy related ETFs benefitted from the U.S. Bill to secure a slot on the top performers' list.
Ethereum ETFs still Posting Gains
According to CoinMarketCap, the second most popular blockchain after Bitcoin, traded in the green for the third consecutive week. The ‘Merge’ continues to be the driving force behind the cryptocurrency’s surging price. In fact, July has brought relief to Ethereum’s fans and investors alike, with Ethereum’s classic (ETC) and ether (ETH) tokens leading the recovery in digital assets. The price of ETH soared 8.01% having opened the week – between July 25th and July 29th – at USD$1,599 and closing at USD$1,727 while ETC jumped from USD$25.58 to reach USD$40.61, equivalent to a 58.75% price increase in the same time period. ETC’s gains came after Vitalik Buterin, Ethereum’s co-founder, encouraged users and developers last week to migrate back to his original creation if they were not convinced by the upcoming network upgrades. ETFs tracking the second largest cryptocurrency dominated the top performing ETFs list. The three versions of the Purpose Ether Yield ETF (ETHY), (ETHY.U), and (ETHY.B) ranked first, fifth, and sixth having risen 13.78%, 13.38%, and 13.18% respectively. The Purpose Ether ETF (ETHH) followed suit with 12.54% return while the other two versions of this offering (ETHH.B) and (ETHH.J) generated 11.92% and 11.91% over last week.
ETFs in play:
U.S Budget Reconciliation Bill Boosts Energy Related ETFs
The U.S. Senate Democrats unveiled a budget reconciliation bill with the support of Senator Joe Manchin. The bill includes USD$369 billion in climate and energy spending over the next decade. Moreover, it contains consumer incentives for energy efficiency and electric vehicles. The Democrats have high hopes on passing the bill through a majority vote, turning it into a legislation investing in hydrogen, fossil fuels and energy storage technologies, nuclear, and renewable energy. The effort includes tax credits for clean energy and domestic energy manufacturing while aiming to reduce carbon emissions by approximately 40% by 2030.The market reacted positively with ETFs tracking clean energy, energy, climate, and hydrogen soaring and securing slots on the Canadian top 20 performers for the week. The iShares Global Clean Energy Index ETF (XCLN), the BMO Clean Energy Index ETF (ZCLN), and the CIBC Clean Energy Index ETF (CCLN) ranked second, third, and fourth having jumped 13.64%, 13.42%, and 13.40% respectively. Similarly, the CAD (NNRG) and USD (NNRG.U) of the Ninepoint Energy Fund have gone up 12.41% and 12.38%. Last but not least, the Purpose Global Climate Opportunities Fund (CLMT) and the Horizons Global Hydrogen Index ETF (HYDR) posted 11.55% and 11.30% gains respectively.
ETFs in play:
Data for this article is as of July 29th, 2022.
