Clarity Act Failure Could Bring Opportunity With This ETF

Cryptocurrency prices tumbled on Tuesday when the Clarity Act failed to advance out of the Senate. Crypto-related equities weren’t spared in the carnage. As one example, cryptocurrency brokerage giant COIN) slumped 10.1% after the Clarity Act procedural vote stalled.

Obviously, a one-day decline of 10.1% for shares of Coinbase is bad news for the CONX) — an ETF designed to deliver 200% of the daily performance of Coinbase shares. However, both the stock and CONX could be assets to watch as the market moves past Clarity Act disappointment.

Looking beyond that legislation, CONX and the BTCU), which attempts to deliver returns that correspond with 200% of the daily performance of the largest plain vanilla spot bitcoin ETF, are geared ETFs to watch over the near-term. After all, if bitcoin adheres to its four-year cycle history, the largest digital currency could notch a bottom next month. From there, a new bull market could be born, potentially supporting gains for the two Direxion leveraged ETFs.

It will be overlooked due to Clarity Act headlines, but specific to Coinbase shares and CONX, it’s worth noting that on Tuesday, Morningstar upped its fair value estimate on the stock to $168 from $150.