This Cryptocurrency's 7.6% Move Today Rocketed This Token Into the Top 30
Key Points
Down more than 70% over the course of the past 12 months, many investors had seemingly given up hope on Polkadot.
However, an inclusion by Bitwise in a key crypto ETF has investors reconsidering their thesis around this token.
Here's what to make of this move, and whether Polkadot has big upside off its recent bottom.
Polkadot (CRYPTO: DOT) is one of the most impressive movers in today's cryptocurrency market, appreciating 7.6% over the past 24 hours, as of 7 p.m. ET.
This move follows increasingly bullish momentum in the digital assets space, with the market capitalization of all cryptocurrencies rising 2.5% over the same time frame.
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However, for Polkadot, a token that has declined by more than 72% over the past year (inclusive of today's move), investors who have continued to buy on the way down have clearly been waiting for a significant move like this to justify their position.
Today, there's one key catalyst reinvigorating investor interest in Polkadot specifically. Let's explore the catalyst that has the potential to significantly alter this token's near-term outlook.
Key ETF inclusion sparking considerable investor interest
Source: Getty Images.
Polkadot is currently ranked the 29th-largest token by market capitalization, having surged into this position from 31st place essentially overnight, following news that Bitwise has included Polkadot in its Bitwise 10 Crypto Index ETF, which launched on Tuesday under the ticker BITW.
Notably, this is the first ETF issued by one of the top asset managers in this sector which has decided to include Polkadot, a move that validates this open-source, sharded, multi-chain protocol. Polkadot's goal is to create an interoperable future, where specialized blockchains can interact with each other (rather than operating in idiosyncratic silos). Doing so could accelerate the innovation we're already seeing in this sector, making Polkadot one of the most closely watched mid-tier tokens in the market. At least, it was for quite some time.
I think this ETF inclusion could prompt some investors to reassess whether their own portfolio allocations are sufficient, or whether some amount of Polkadot should be added to their portfolios. I'm talking about retail and institutional investors alike.
For those looking to follow in the footsteps of money managers who make active decisions about which tokens to include in their ETFs, today's announcement is a significant development.
Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.