It has been a rollercoaster trip for bitcoin already in 2021, and the 12 months remains to be younger.
Nevertheless, I would not be stunned if bitcoin delivers strong returns over the following 11 months. Then again, I additionally assume that Robinhood traders like a number of shares that would generate even increased returns. Listed here are three well-liked shares on the no-cost buying and selling platform that could possibly be higher than bitcoin in 2021.
1. ARK Innovation ETF
OK, ARK Innovation ETF (NYSEMKT:ARKK) actually is not a inventory. It is an exchange-traded fund (ETF) that trades like a inventory, although. It is also beloved by Robinhood traders. I feel ARKK deserves its acclaim. In actual fact, my view is that ARKK ranks as the popular Robinhood stock most likely to soar in 2021.
ARKK was an enormous winner final 12 months with a return of 149%. Whereas that did not outperform bitcoin, I feel the story may change going ahead.
For one factor, ARKK has Cathie Wooden on the helm. She’s with out query probably the most achieved traders on the scene at present. With this specific ETF, Wooden has a particular alternative to shine as she focuses on the shares of firms with super disruptive potential.
We may discuss loads of ARKK’s holdings that ought to generate large beneficial properties this 12 months, however I am going to solely spotlight two of them. I feel Roku and Sq. will profit from two unstoppable traits — linked TV and digital funds, respectively. ARKK additionally has dozens of different nice shares that would additionally assist it outperform bitcoin in 2021.
Some would possibly assume that 2021 can be a banner 12 months for cryptocurrencies. I think that it is going to be a fair greater 12 months for marijuana stocks. If I am proper, that would bode properly for Robinhood favourite Hexo (NYSE:HEXO).
Granted, Hexo appeared like something however a inventory you’d need to personal final 12 months. Its shares plunged 42%. Nevertheless, steep declines have been widespread amongst Canadian pot shares. However issues are undoubtedly trying up now.
Do not be stunned if the Democratic-controlled U.S. Congress strikes ahead this 12 months with laws that decriminalizes marijuana. If such a invoice passes and is signed into regulation by President Biden, it may clear the best way for Hexo to enter the profitable U.S. hashish market whereas retaining its itemizing on the New York Inventory Alternate.
Hexo is already within the U.S. market in a method. Truss CBD USA, a three way partnership fashioned by Hexo and its massive accomplice Molson Coors, started advertising nonalcoholic CBD-infused drinks in Colorado earlier this month. I feel that hashish reform on the federal degree may open up a a lot higher alternative for Hexo (maybe with Molson Coors at its facet) and make this beaten-down pot inventory beat bitcoin this 12 months.
3. Inovio Prescribed drugs
Maybe probably the most crucial milestone for the world this 12 months would be the huge rollouts of COVID-19 vaccines. The vaccine developed by Inovio Prescribed drugs (NASDAQ:INO) could possibly be amongst these administered in 2021.
Inovio turned in an amazing efficiency final 12 months, with its shares hovering 168%. That acquire could possibly be a drop within the bucket, although, if the biotech’s INO-4800 COVID-19 vaccine proves secure and extremely efficient.
It will likely be later within the 12 months earlier than we all know extra about the true potential for INO-4800. Inovio is presently evaluating the experimental vaccine in a section 2 medical examine.
The biotech inventory may have one other main catalyst on the best way, although. Inovio expects to report outcomes from a late-stage examine of VGX-3100 in treating precancerous cervical dysplasia within the first half of 2021. Constructive outcomes from this examine may set the stage for a regulatory submitting for VGX-3100.
An essential disclaimer
Can these three shares actually outgain bitcoin this 12 months? I feel so. Nevertheless, there is no solution to ensure that will occur. Whereas I like ARKK, I am not recommending both Hexo or Inovio at this level.
My view is that there are even higher marijuana shares than Hexo that Robinhood traders cannot purchase. The buying and selling platform restricts entry to most over-the-counter (OTC) shares. At present, all the U.S.-based multistate hashish operators cannot checklist their shares on main U.S. exchanges and are solely out there on OTC markets. I additionally assume that though Inovio’s INO-4800 has potential, there are extra enticing COVID-19 vaccine shares to purchase.
These well-liked Robinhood shares could possibly be higher than bitcoin — however there are different shares that could possibly be higher than them.