IBLC - Fintech and crypto ETFs drop amid selloff in Square-parent Block

2023-03-23 10:43:22 ET

Shares of Block Inc. ( NYSE: SQ ) crashed 20% on Thursday morning after Hindenburg Research put out a short report on the stock. As a result, many exchange traded funds with heavy weightings towards the parent company of payment processing service Square have also tilted to the downside.

SQ is currently held by 177 different ETFs. Listed below are the five names that have the largest stake in Jack Dorsey and Jim McKelvey’s payment processing platform, along with their allocation percentages.

• Global X Blockchain ETF ( NASDAQ: BKCH ) 19.36%.
• Fidelity Crypto Industry and Digital Payment ETF ( NASDAQ: FDIG ) 15.55%.
• First Trust SkyBridge Crypto Industry and Digital Economy ETF ( CRPT ) 12.70%.
• iShares Blockchain and Tech ETF ( IBLC ) 12.61%.
• ARK Fintech Innovation ETF ( NYSEARCA: ARKF ) 10.31%.

All five funds list Block Inc. in their top 5 holdings. BKCH labels SQ as its top holding, FDIG lists the company as its second largest holding, whereas IBLC and ARKF put SQ as the ETFs third largest holding. Additionally, CRPT holds SQ as the funds fourth most significant holding.

Thursday's price action: SQ -20.7% , BKCH -3.5% , FDIG -3.2% , CRPT -5.3% , IBLC -2.3% , and ARKF -1.6% .

For a different perspective from the one presented in the Hindenburg short report , Seeking Alpha contributor Deep Tech Insights described the company as posting "super" results for Q4, with " a dual growth engine ecosystem ."

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