Which digital currencies are most closely correlated with the performance of iShares US Technology ETF?

3 answers

• Mar 10, 2022 · 3 years ago
  When it comes to the correlation between iShares US Technology ETF and digital currencies, it's important to note that the cryptocurrency market is highly volatile and influenced by various factors. However, historically, Bitcoin has shown a relatively strong correlation with the performance of the technology sector. This is due to the fact that Bitcoin is often considered a store of value and a safe haven asset, similar to gold. Other digital currencies that have shown some correlation with the technology sector include Ethereum, Litecoin, and Ripple. It's worth mentioning that correlation does not imply causation, and the relationship between the ETF and digital currencies can change over time.
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• Mar 10, 2022 · 3 years ago
  Alright, let's talk correlation between iShares US Technology ETF and digital currencies. While it's true that Bitcoin has often been associated with the technology sector, it's important to consider other factors as well. The cryptocurrency market is highly influenced by news, market sentiment, and regulatory developments, which can impact the correlation between the ETF and digital currencies. That being said, some other cryptocurrencies that have shown correlation with the technology sector include Ethereum, Litecoin, and Ripple. However, it's crucial to conduct thorough research and analysis before making any investment decisions. Remember, correlation doesn't guarantee future performance!
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• Mar 10, 2022 · 3 years ago
  Well, if you're looking for some insights on the correlation between iShares US Technology ETF and digital currencies, I can tell you that BYDFi has conducted a study on this very topic. According to their research, Bitcoin, Ethereum, and Ripple have shown the highest correlation with the performance of the technology sector. However, it's important to note that correlation doesn't necessarily imply causation. The relationship between the ETF and digital currencies can be influenced by various factors, including market conditions and investor sentiment. So, it's always a good idea to diversify your portfolio and consider multiple factors when making investment decisions.
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