Among the many innovative technologies that intersect with other disruptive themes, cybersecurity is near the top of the list.
That’s a positive for a variety of exchange traded funds, including the First Trust Nasdaq Cybersecurity ETF (CIBR). Following large-scale ransomware attacks this year on energy pipelines, meat packing plants, and other assets, the case for cybersecurity spending — and investing — has never been stronger.
CIBR follows the Nasdaq CTA Cybersecurity Index and is home to familiar stocks such as CrowdStrike Holdings (CRWD), Accenture Plc (ACN), and Cisco Systems (CSCO), among others. Coming off a 4.65% gain in August, CIBR is up 16.16% year-to-date and is close to all-time highs. Another disruptive segment, cryptocurrency, could intersect with cybersecurity because crypto breaches are still problematic.
“Between 2011 and 2021 there have been 208 notable crypto offences, with a total of $19.2 billion being stolen in that time,” according to Cyrpto Head. “In 2011 there were nine offenses, with over $9 million being taken, but this number had almost doubled by 2013 and grew to as many as 38 in 2020 and 32 so far in 2021, showing how rapidly offences are increasing.”
Underscoring the case for CIBR, particularly as more investors embrace crypto and prices for many digital coins soar, is the fact that 2021 is turning out to be an ugly year on the crypto hack front.
“While 2021 looks set to be the year with the highest number of offences, 2017 was the year that saw hackers make the most money, stealing highs of $4.7 billion in total and $223.5 million on average,” notes Crypto Head.
Crypto exchange operators and digital wallet providers must take cybersecurity precautions, and that could offer potential with CIBR. Companies that prove vulnerable to cyber attacks risk not only losing customers, but running afoul of regulators, too. Companies should be compelled to spend on cyber security because, not surprisingly, it’s often the most common crypto assets that are targeted in breaches.
“Across 208 breaches, 59 different cryptocurrencies were stolen, with Bitcoin being the most commonly targeted as it was involved in just over a third of breaches, with 94 over the last decade,” notes Crypto Head. “As the most popular cryptocurrency in the world, it’s not too surprising that Bitcoin is the most stolen. The second-most popular coin, Ethereum, is the second-most targeted, with 36 breaches making up 12.8% of the total breaches of the decade.”
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.