Circle's Top Spot in VanEck Crypto Index
Circle's Growing Influence in the Crypto Market
Circle Internet Group (CRCL) stock now boasts the highest weighting in VanEck's MVIS Global Digital Assets Equity Index (MVDAPP), signifying the company's increasing prominence within the cryptocurrency sector. As of today, CRCL constitutes 13% of the MVDAPP index, up from approximately 11% on Friday.
The MVDAPP index, created by a VanEck subsidiary, tracks the performance of leading, liquid companies operating within the crypto space. Companies must derive at least 50% of their revenue from digital assets to be included.
Investors can gain exposure to MVDAPP through VanEck's Digital Transformation ETF (DAPP), which aims for close tracking of the index. The ETF holds the same 24 companies as the MVDAPP index, including notable players like Coinbase (COIN), MicroStrategy (MSTR), Metaplanet (3350 JP), and Block (SQ).
According to Matthew Sigel, head of VanEck's digital asset research, "Our total holdings now exceed [Circle] CEO Jeremy Allaire’s."
Source: Matthew Sigel
Launched in 2021, VanEck's Digital Transformation ETF currently manages over $210 million in net assets, exhibiting year-to-date returns of 5.3% as of Friday.
Circle Stock's Remarkable Performance
Circle's recent initial public offering (IPO) on the New York Stock Exchange has been nothing short of explosive. The stock price quickly surpassed its initial offering price of $31, demonstrating strong investor demand. In fact, Circle increased the size of its IPO on the eve of its debut, anticipating this significant market response.
CRCL stock experienced a 167% surge on its first trading day and is currently trading at over 750% above its IPO price. On Monday, shares experienced further gains, climbing over 11% to $263.
Source: Google Finance
Circle is the driving force behind USDC, the second-largest dollar-pegged stablecoin in circulation. The future of USDC looks bright, especially if the GENIUS Act passes through the House of Representatives. This bill could significantly shape the U.S. digital asset landscape.
Furthermore, the integration of USDC as eligible collateral for US futures trading, a collaboration between Coinbase Derivatives and Nodal Clear, is set to launch next year, further expanding USDC's reach and utility.
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