The short interest in the Horizon Kinetics Blockchain Development ETF (NYSEARCA:BCDF) experienced a significant decline of 14.0% in January 2024. As of January 30, the total short interest was recorded at 2,699 shares, down from 3,137 shares on January 15. This reduction indicates a relatively low level of bearish sentiment towards the fund, with approximately 0.4% of its shares currently sold short.
The days-to-cover ratio, which measures how many days it would take for all shorted shares to be bought back based on average trading volume, stands at 0.8 days. The average daily trading volume for the ETF is 3,439 shares, reflecting a stable trading environment.
Institutional Investment in BCDF
In a notable development, institutional investor Flow Traders U.S. LLC acquired a new position in the Horizon Kinetics Blockchain Development ETF during the second quarter of 2024. According to a filing with the Securities and Exchange Commission (SEC), Flow Traders purchased 10,197 shares valued at approximately $318,000. At the end of the most recent quarter, this investment represented around 1.62% of the ETF’s total shares, highlighting growing institutional interest in blockchain-related investments.
Current Market Performance
On Thursday, shares of the Horizon Kinetics Blockchain Development ETF opened at $30.50. The fund’s performance over recent months shows a 50-day moving average price of $31.04 and a 200-day moving average price of $31.21. Over the past year, the ETF has fluctuated between a low of $25.52 and a high of $36.27. The current market capitalization of the ETF stands at $20.74 million, with a price-to-earnings (PE) ratio of 21.22 and a beta of 0.77.
The Horizon Kinetics Blockchain Development ETF, launched on August 1, 2022, is designed to invest primarily in companies involved in blockchain development across various market capitalizations globally. The fund is actively managed by Horizon Kinetics, aiming to leverage the growth potential of this emerging sector.
Overall, the decline in short interest and the recent institutional buy-in could indicate a positive outlook for the Horizon Kinetics Blockchain Development ETF as it continues to navigate the evolving landscape of blockchain investments.
