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The 1st Bitcoin ETF Launches: Should You Buy Today? – The Motley Fool Canada

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The cryptocurrency bull market has gained significant steam in 2021. Bitcoin, the largest crypto by market cap, recently surged above the US$50,000 mark. Some analysts have warned that this rally has moved into dangerous territory. Concerns over a bubble are not unwarranted, but it is hard not to be tempted by this red-hot market right now. Canadian investors now have another way to stash the top crypto in their portfolios. The first Bitcoin ETF launched this month.

Today, I want to discuss why Bitcoin has soared to record heights in late 2020 and early 2021. Moreover, we’ll explore whether it makes sense for Foolish readers to stash the recently launched bitcoin ETF.

Why Bitcoin has soared in 2021

The price of Bitcoin rose above US$54,000 in trading today. In 2017, BTC and the cryptocurrency space were thrust into the mainstream. This first bull market came crashing down in the first month of 2018. One of the biggest reasons for the loss of faith in crypto was an attack by international regulators. This continued through to 2019.

That has changed in 2020. BTC and its peers are now benefiting from the opposite effect. Regulators and institutional investors have given crypto their blessing. Crypto trading is now offered through huge processors like PayPal and through firms like WealthSimple. Meanwhile, big players in the corporate space are also giving Bitcoin a boost.

The most recent surge started when Elon Musk revealed that Tesla had poured US$1.5 billion into bitcoin. Musk has become the richest man on the planet on the back of Tesla’s stock surge. His bet on Bitcoin has bolstered his wealth in a short time.

Should Canadians look to stash this ETF in late February?

Before February, Canadian investors have been able to hold Bitcoin through The Bitcoin Fund (TSX:QBTC.U). This week, the first Bitcoin ETF launched and has attracted significant attention. Purpose Bitcoin ETF (TSX:BTCC.B) aims to directly track the performance of the top digital asset. It achieved record volume on its first day of trading on February 18. Investors bought and sold more than $260 million of shares on that day.

A correction for BTC seems inevitable. Its meteoric rise in late 2020 and early 2021 has deservedly set off alarm bells. At the same time, Bitcoin and its peers are benefiting from increased adoption in the broader financial space. This may continue to fuel its rise in the weeks and months ahead. Foolish readers who are eager to own the top digital currency may want to jump in on this red-hot ETF after its debut. However, they should beware that Bitcoin and other crypto assets have demonstrated extreme volatility in recent years.

Earlier this week, I’d suggested that Canadians should look to top TSX stocks like Shopify or goeasy instead of betting on Bitcoin. It is impossible to predict Bitcoin’s trajectory in this incredible bull market. Investors who want to get in on crypto should practice dollar-cost averaging to minimize risk going forward.

Happy hunting, Fools!

On the topic of crypto assets to target right now…

Should you invest $1,000 in Hive Blockchain right now?

Before you consider Hive Blockchain, you may want to hear this.

Motley Fool Canadian Chief Investment Advisor, Iain Butler, and his Stock Advisor Canada team just revealed what they believe are the 10 best stocks for investors to buy right now… and Hive Blockchain wasn’t one of them.

The online investing service they’ve run since 2013, Motley Fool Stock Advisor Canada, has beaten the stock market by over 3X. And right now, they think there are 10 stocks that are better buys.

Learn More Today!


Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. David Gardner owns shares of Tesla. Tom Gardner owns shares of Shopify and Tesla. The Motley Fool owns shares of and recommends PayPal Holdings, Shopify, Shopify, and Tesla and recommends the following options: long January 2022 $75 calls on PayPal Holdings.

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Why rising bond yields challenge stocks and the Fed – CNBC Television

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  1. Why rising bond yields challenge stocks and the Fed  CNBC Television
  2. Fed Chair Jerome Powell says money printing doesn’t lead to inflation  Kitco NEWS
  3. US stocks rally as Powell soothes traders’ nerves  BNN
  4. Inflation Is Uncontainable But Not Inevitable  Bloomberg
  5. Fed Chairman Powell Helps the Stock Market But Won’t Discuss Deficit  Bloomberg
  6. View Full coverage on Google News



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Here We Go Again: Why GameStop Stock Is Soaring Today – The Motley Fool Canada

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The top indexes in the United States were down broadly in mid-morning trading on February 25. However, a handful of “meme stocks” were on the run again. In late January, the investing world was swept up in the reddit-fueled GameStop (NYSE:GME) craze. Its shares fell precipitously in early February, punishing those that bought late into the frenzy. Shares of GameStop were up nearly 50% in mid-morning trading today. What is behind this latest surge?

The top “meme stock” still has life

On Tuesday, Bloomberg News reported that GameStop’s chief financial officer Jim Bell was pushed out to make way for an executive with a vision more in line with Ryan Cohen. Cohen is an activist investor on the board and the co-founder of online pet-food retailer Chewy.com. His addition to the board sparked the big rush to GameStop stock.

The r/WallStreetBets board saw so much traffic that it went down after trading halted. GameStop was not the only “meme stock” to benefit from this social media-powered surge. We saw a handful of the same names putting together a solid mid-week spike. AMC Entertainment, which has suffered mightily in the cinema space during the pandemic, was up 10% in late-morning trading on February 25. Meanwhile, BlackBerry had failed to pick up any significant momentum.

Is there any reason to consider GameStop as a long-term investment?

Earlier this month, I’d suggested that investors should look elsewhere in the promising video game space. GameStop has been an amusing roller-coaster ride, but investing on the whims of a social media mob is usually not a recipe for success. More importantly, GameStop is in a tough position as brick-and-mortar retail looks to decline even further in the years ahead. It will need to dramatically reshape its business model to have a chance in this new economy.

Here are some stocks I like better than GameStop right now

I’d also suggested that investors may want to look at Cineplex (TSX:CGX). Canada’s top cinema operator has also struggled mightily during the pandemic. Indeed, movie theatres have barely been able to operate commercially over the past year. Still, shares of Cineplex have climbed 60% in 2021 so far. There are high hopes for a rebound in this industry as the economy reopens.

Cineplex cinemas will reopen in Ottawa and Cornwall this week. Its shareholders can look forward to a further return to regular operations in the weeks and months ahead. A flurry of box office draws that have been delayed have the potential to thrust Cineplex back to normalcy. GameStop’s business, however, does not have high hopes as currently constructed.

Copper Mountain Mining (TSX:CMMC) is a top base metals mining company in Canada. Copper and other commodities have erupted in late 2020 and early 2021. Shares of Copper Mountain Mining have climbed nearly 80% in the year-to-date period. The stock is up almost 500% from the prior year. Instead of betting on “meme stocks” like GameStop, investors can hop on the base metals bull run. This has a good shot to continue into the rest of 2021, as the global economy rebounds.

Speaking of stocks I’d buy over GameStop…

This Tiny TSX Stock Could Be the Next Shopify

One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting…
Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago – before it skyrocketed by 1,211%!
Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!

Click here to discover how!


Fool contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. David Gardner owns shares of GameStop. The Motley Fool recommends BlackBerry, BlackBerry, and CINEPLEX INC.

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Dairy farmers advised to stop adding palm oil to feed as butter controversy heats up – CBC.ca

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After news coverage of butter becoming harder to melt, possibly due to palm oil additives in cattle feed, the Dairy Farmers of Canada association is recommending that producers stop the practice for the time being.

Gordon MacBeath, a member of the national group’s board and chairman of the Dairy Farmers of P.E.I., said the group is responding to recent concerns about the hardening of some types of Canadian butter.

“It’s just a precautionary [measure] to ensure that consumers maintain confidence in dairy products across Canada,” MacBeath said in an interview with CBC Prince Edward Island’s Island Morning.

Dairy Farmers of Canada also announced on Feb. 19 that it is putting together a working group to study the issue of “fat supplementation in the dairy sector.”

The group will include producers, processors, the Consumers Association of Canada, veterinary nutritionists and animal scientists.

WATCH | Butter won’t melt? Some have theories about why that is:

Canada’s dairy producers are under fire after foodies claimed butter has become harder and put the blame on palm oil. Dairy farmers say adding palm products to cattle feed has become common, but critics say it violates a ‘moral contract’ about the purity of Canadian butter. 1:52

“We want to err on the side of caution and we’re advising producers to just simply drop it as an ingredient in the ration until the working group has an opportunity to do their work,” said MacBeath.

The Quebec Milk Producers Association is also looking at the use of palm fat in feed, and says it will follow the recommendations of the national group.

Palm fat an approved supplement

Palm fat is not a new addition to dairy cattle diets, MacBeath noted. It has been used for about a decade. The supplement is also being used in the United States, the United Kingdom, Australia and New Zealand.

The fat is an energy supplement, MacBeath explained.

“I would compare it to yours and my diet. We need a balance of energy and protein, and the cow is no different. She needs a balance of energy and protein,” he said.

The properties of the butter on your table might change for many reasons from year to year, says Gordon MacBeath, chairman of Dairy Farmers of P.E.I. (Randy McAndrew/CBC)

“Palm supplements are just another energy source for the cow.”

A cow requires about 35 kilograms of feed a day. If palm fat is part of that diet, within that 35 kilograms the cow would typically get 200 to 250 grams of the fat.

In the decade during which palm fat has been used as a supplement for dairy cattle feed, MacBeath said no health issues for the cow or changes to the milk have been detected. He said dairy farmers are in regular consultation with veterinary nutritionists to ensure their cows are getting a healthy diet.

Palm fat is approved as a supplement by the Canadian Food Inspection Agency.

At least one researcher is questioning whether this is even a problem that needs to be addressed.

Alejandro Marangoni, a food science professor at University of Guelph, said while components of palm oil found in milk fat can affect the melting point of butter, there’s no data to support “sensationalist” claims of a great hardening.

Many possible reasons for change in butter 

There are a lot of things that can change from season to season and year to year that can make a difference to the milk products on your table, said MacBeath.

“Milk is such a natural product. From the time it leaves the cow, it’s processed very little and it ends up in the consumer [market] with very little change,” he said.

Cows need variety in their diet, just like people do. (Benjamin Lecorps/UBC Animal Welfare Program via the Canadian Press)

If there is a change in the butter, he said it’s not unreasonable to assume it’s because of something the cows ate. But MacBeath said the list of potential causes is long.

“To give an example, this year was very dry, so the texture of the forage and the grass the cow is eating is different than it was the previous year,” he said.

“The previous year we had Hurricane Dorian and that changed the quality of the corn.”

Dairy Farmers of Canada notes that dairy cattle feed varies not only from season to season and year to year, but also from place to place, because the type of feed available varies depending on what local farmers are growing.

“While farmers grow the majority of the crops they feed their cows, a number of common feeds like flax, canola, corn, and other plants have been used for decades in a targeted way to ensure cows are meeting their energy requirements,” says a statement posted on the group’s site

“All milk sold in Canada is nutritious and safe to consume and is subject to Canada’s rigorous health and safety standards.”

More from CBC P.E.I.

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