Market Overview

Cryptocurrency Proxy Stocks Gain As Bitcoin Rebounds


Shares of multiple bitcoin proxy stocks—including Riot Blockchain RIOT, LongFin LFIN, and the Bitcoin Investment Trust GBTC—surged on Tuesday amid a slight rebound throughout the cryptocurrency market.

Today's jump for crypto stocks came amid strong moves from nearly every popular cryptocurrency. Bitcoin's price popped 14 percent to $8,144 within the last 24-hours, while Litecoin soared 15.17 percent to $148.

On top of that Ripple, a rapidly growing crypto that is controlled by a San Francisco-based startup, and Ethereum, the second largest crypto by market cap, rose 9.9 percent and 12.1 percent, respectively.

Tuesday's gains should please cryptocurrency investors who have taken big hits recently as the new-age digital currency becomes increasingly volatile, and therefore subject to massive one-day swings. This cryptocurrency upturn coincides with the recent stock market pullback, which finally slowed down late Tuesday (also read: Volatility Returns: Key Facts Behind Historic Stock Sell-Off).

With that said, let's take a look at three cryptocurrency proxy stocks that popped today amid market turmoil.

LongFin Corp.

This small-cap company recently tethered itself to the blockchain technology wave. Longfin stock skyrocketed after it acquired, a blockchain research company that hopes to decentralize lending and financing solutions. Shares of Longfin surged nearly 11% on Tuesday as it tried to inch back to life after a massive sell-off.

Riot Blockchain

Interestingly enough, Riot Blockchain was a dying biotech diagnostics equipment firm called Bioptix, Inc before pivoting to blockchain technology as Bitcoin became increasingly popular. Today, shares of Riot skyrocketed over 17 percent. Still, the company sits well below its all-time high as its stock price had fallen 39.5 percent over the past four weeks.

Bitcoin Investment Trust

The Bitcoin Investment Trust operates as a bitcoin holding fund. GBTC saw its stock price soar over 22% to close Tuesday at $12.31 per share. However, these gains don't make up for its recent loses, as GBTC still sits far below its all-time intraday trading high of $38.71 per share.

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The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

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