Blockchain Stocks Weekly Update – December 14: Spanish Bank BBVA Used Blockchain to Lend €150 million to Porsche

Reality Shares Nasdaq Nexgen Economy ETF (BLCN) December 2018

Despite “What is Bitcoin?” topping the Google’s search results in the United States and the United Kingdom in 2018, the BTC/USD continued the bearishness and reached a fresh low of $3,245. The major cryptocurrencies all lost market capitalization this week and Ripple lost around 4.75%.

Few analysts continued to reassert their bullish stance about bitcoin. Bloomberg reported on December 13 that Thomas Lee, the head of research at Fundstrat Global Advisors, has put the fair value of bitcoin at $150,000 per coin.

Bahrain’s central bank issued a set of draft rules to regulate platform operators and exchanges of crypto-asset in the country, reported Reuters. “The rules also included measures to safeguard customer interests, technology standards, and cybersecurity risk management, ” said the central bank of Bahrain.

One of the largest banks in Spain, Banco Bilbao Vizcaya Argentaria, closed a €150 million loan deal with car manufacturer Porsche. “This transaction is all about putting blockchain technology into meaningful practice in the interactions with our clients. Our aim is to improve clients’ experience by simplifying processes and enhancing the speed of execution,” said Frank Hoefnagels, the head of the BBVA CIB in Germany.

Based on our research, we found that the following blockchain stocks demonstrated notable price movements based on shifts in their company fundamentals.

Digital Garage Inc

Japan-based Digital Garage Inc (4819) offers “new contexts” through the Internet by implementing three core technologies: Information Technology (IT), Marketing Technology (MT), and Financial Technology (FT).

Earlier in November, bitcoin infrastructure company Blockstream expanded its strategic partnership with the Digital Garage Inc. The enthusiasm for blockchain and cryptocurrencies has been growing in Japan at a rapid pace over the last years. Dr. Adam Back, CEO of Blockstream, commented that “the Japanese market is ready for new business models that blockchain technologies can enable.”

We believe this multi-year technology partnership will the source of new revenue potentials for Digital Garage Inc.

Digital Garage Inc (4819) December 2018

The stock price of Digital Garage Inc has remained bearish since July. In fact, from a technical perspective, the Alligator indicator shows a strong downturn in the market. However, the support around 2643 kept the price from falling further.

In the last few days, Digital Garage Inc’s stock turned bullish after the news about the new partnership with Blockstream was announced. However, we believe conservative investors should wait for the price to break above the resistance near 2913 before considering increasing their exposure to the company.

Reality Shares Nasdaq Nexgen Economy ETF

Reality Shares Nasdaq Nexgen Economy ETF (BLCN) is one of the very few exchange-traded funds out there that solely focus on publicly traded companies that commit material resources to develop, research, support, innovate utilizing blockchain technology.

Earlier in this week, news broke that the Ahrens Investment Partners, LLC has taken up a new position in the ETF during the third quarter of 2018. Ahrens Investment Partners LLC bought 14,455 shares of the Reality Shares Nasdaq Nexgen Economy ETF for approximately $342,000. Currently, the investment firm owns around 0.35% of the shares of the ETF.

Reality Shares Nasdaq Nexgen Economy ETF (BLCN) December 2018

Since early October, the Reality Shares Nasdaq Nexgen Economy ETF’s price has remained bearish and fell below the support near $22.00 per share and it formed a downtrend line.

While the purchase amount is rather small, the fact is that a major investment firm has just made a commitment to increase their exposure to the Reality Shares Nasdaq Nexgen Economy ETF will have a major psychological impact on the market. Also, looking at the Commodity Channel Index, we see that there is a minor divergence between the CCI slope and the price slope of the ETF, which indicates a bullish thesis.

If we see the Reality Shares Nasdaq Nexgen Economy ETF’s price breaking above the downtrend line in the next few weeks, it will certainly attract additional bullish momentum in the market. Consequently, the ETF price might move upwards to test the resistance near $22.00 per share.

Bottom Line

The bearish nature of major cryptocurrencies has put a dent on the broader enthusiasm of investors seeking to maximize their investment returns in the blockchain stocks. Especially, the stocks of bitcoin and other cryptocurrency miners are taking a beating in the market right now.

However, there are a few bullish analysts like Thomas Lee, who still believe bitcoin is massively undervalued and it will soon reverse gear. Meanwhile, major investment firms seem to remain positive about the overall application of blockchain technology and they are increasing investments in blockchain stocks and ETFs.

We still argue that long-term investors in the industry remain positive and continue to seek value in companies who are looking to change the industry landscape through the application of decentralized database solutions and the two assets we discussed this week are examples of such long-term growth opportunity.


Blockchain Stocks has not been paid to mention any stock /company within this article nor do we own any stock in any company mentioned in this article. More information about our full disclosure can be found here – Full Disclaimer.