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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
November was an interesting month for OTC Markets securities.
As the S&P 500 Exchange-Traded Fund (SPY) experienced a pullback that erased the entirety of its November gains, the OTCQB recorded a 65% increase in trading volume among its top securities compared to October. Investors flocking to the OTC Markets as large, medium, and mega caps retracted may provide a potential explanation for this dramatic increase in month-over-month volume.
Regardless of the cause, the OTCQB witnessed over $1.1 billion worth of trading volume in its top 31 traded securities in November. Fannie Mae FNMA, Freddie Mac FMCC and Netlist Inc. NLST retained their spots as 1st-, 2nd- and 3rd-most traded securities, respectively, while trading volume on Tokens.com Corp. SMURF and Innovation Pharmaceuticals Inc. IPIX increased approximately 6-fold from the prior month. Of the 31 top traded securities on the OTCQB, only 9 experienced a reduction in trading volume.
OTCQX: Cannabis Operators Command Attention
While only 8 of the top 31 traded securities on the OTCQX experienced a reduction in trading volume, these reductions significantly impacted total volume, resulting in a 7% decline in total volume compared to October.
Cannabis operators accounted for the majority of volume increases. Verano Holdings Corp. VRNOF, for example, experienced a 207% increase in trading volume compared to last month. Cannabis operators Ayr Wellness Inc. AYRWF and TerrAscend Corp. TRSSF followed suit with 244% and 195% increases in monthly volume, respectively.
Despite significant drawbacks in the prices of Bitcoin (BTC) and Ether (ETH), Grayscale Bitcoin Trust GBTC and Grayscale Ethereum Trust ETHE retained their spots as the 1st and 2nd most-traded securities on the OTCQX, amassing a collective dollar volume of more than $11 billion in November. The 2 companies have held their titles for months, demonstrating a significant hold on investors’ attention.
Grayscale’s Litecoin Trust LTCN was even more sturdy than its Ethereum and Bitcoin counterparts; its volume increased by 131%, marking the 4th-highest month-on-month increase and the top among non-cannabis operators in the OTCQX’s top 31.
Nearly ½ of the top 31 traded securities on the OTCQX come from outside North America. Switzerland’s Roche Holdings AG RHHBY was the 3rd-most traded OTCQX security, while France’s BNP Paribas SA BNPQY came in 7th and Germany’s adidas AG ADDYY came in 9th. Nearly one-third of international companies experienced reductions in trading volume, while the remaining two-thirds experienced rises.
Among international operators, United Kingdom’s Anglo American plc NGLOY experienced the worst volume drawback, absorbing a 66% month-on-month decrease. Meanwhile, Australia’s Novonix Ltd. NVNSX experienced the largest volume increase with an 84% change compared to October.
November was a particularly interesting month for the top Canadian companies on the OTC Market. Of the 16 companies between the OTCQX and OTCQB, 14 experienced month-on-month increases in total dollar volume. TerrAscend Corp.’s 195% increase marks the 4th-greatest volume increase on the OTCQX, while American Lithium Corp.’s LIACF November dollar volume places it in 4th place on the OTCQB.
The Top 10s
Below are the top 10 most actively traded securities on the OTCQB and OTCQX markets in November.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
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