Data Show Which OTC Companies Traders Are Flocking To

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Trading activity on OTC Markets spiked hard in November, reflecting the frenzied state of markets as investors reacted to the Presidential election and COVID-19 vaccine developments from Pfizer Inc PFE, BioNTech Inc BNTX and Moderna Inc MRNA. 

According to OTC Markets Group, overall dollar trading volume on the OTCQX Market, the top tier of OTC Markets, rose to nearly $11 billion in November, a 65% increase from October. On the OTCQB Venture Market, dollar volume rose 25% to nearly $2.5 billion. 

“The elevated trading volume reflects an increase in interest from investors across our markets,”  said OTC Markets Group EVP Of Corporate Services Jason Paltrowitz, noting that trading increased in Roche Holding Ltd RHHBY, Danone DANOY and BNP Paribas BNPQY, and Heineken N.V. HEINY. “The resolution of the election may have given investors confidence to put some capital to work there.”

The Most-Traded Securities

As has often been the case in 2020, companies in the crypto and cannabis industries were among the most-traded during the month. Of the 10 most actively traded securities on the OTCQX in November, six fall into one of those buckets. 

The Grayscale Bitcoin Trust GBTC was once again the most-traded security, Over $5 billion worth of shares changed hands last month, a 142% increase from October. Likewise, the Grayscale Ethereum Trust ETHE experienced a 195% month-over-month increase in dollar volume, making it the third most-traded name on the market. 

Other crypto-based securities also had big volume increases:

• HIVE Blockchain Technologies Ltd. HVBTF dollar volume rose 372%
• Grayscale Ethereum Classic Trust ETCG dollar volume rose 191% 
• Grayscale Bitcoin Cash Trust BCHG dollar volume rose 161%
• Grayscale Digital Large Cap Fund LLC GDLC dollar volume rose 144%

On the cannabis front, Green Thumb Industries Inc. GTBIF, Curaleaf Holdings Inc. CURLF, Trulieve Cannabis Corporation TCNNF and Cresco Labs Inc. CRLBF were once again among the most-traded names. But those weren’t the only cannabis companies that traders loved last month:

• AYR Strategies Inc. AYRSF dollar volume rose 247%
• Columbia Care Inc. CCHWF dollar volume rose 155%
• Harvest Health & Recreation Inc. HRVSF dollar volume rose 131%
• TerrAscend Corp. TRSSF dollar volume rose 122%
• Charlottes Web Holdings Inc. CWBHF dollar volume rose 112%

On the OTCQB market Fannie Mae FNMA and Freddie Mac FMCC remained the most-traded securities. Through the end of the month, more than twice as many shares of Fannie had traded this year than Freddie. 

November’s top 10 most-traded securities on the OTCQX and OTCQB markets are below

OTCQX

Source: OTC Markets Group

OTCQB

Source: OTC Markets Group

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.