Bitcoin, the largest cryptocurrency by market value, traded lower on May 31. But overall, the fifth month of the year was kind to the digital asset. And some crypto experts believe more upside could be in store in June.
Should bitcoin build on what’s already a jaw-dropping year-to-date ascent this month, some equity-based, crypto-correlated ETFs could benefit. The actively managed Amplify Transformational Data Sharing ETF (BLOK) is one such fund. Confirming its leverage to bitcoin’s price action, BLOK gained 8.45% in May.
That’s an impressive one-month showing for any ETF. But it doesn’t imply near-term upside for the fund is limited. BLOK is residing 11% below its 52-week high. So it’s not a stretch to believe that an extension of bitcoin’s bullishness could carry the ETF back to those levels or beyond. June could prove instrumental in determining how BLOK performs over the remainder of the year.
Data Dump Could Set June Tone for BLOK, Bitcoin
This week brings a spate of economic data reports. Some of them could go a long way toward determining if bitcoin threatens its May lows or makes a run toward the all-time highs notched in March.
“(This) week should bring a bit more clarity to the U.S. economic picture thanks to Monday's national PMI report and Friday's national employment report. Confirmation of softening economic conditions, and with those improved prospects for lower interest rates, might prove to be the catalyst for bitcoin's attempt at breaching its all time high above $73,000 set in March. Strong economic data, however, could mean a retest of the May lows,” reported Stephen Alpher for CoinDesk.
