IBM is a leading U.S.-based provider of enterprise IT hardware, software and services. In November 2021, IBM spun off the managed infrastructure assets of its former Global Technology Services business into Kyndryl (NYSE: KD). To align with its platform-centric approach, IBM has revised its segment reporting into four major categories: Consulting, Software, Infrastructure, and Global Financing.

The Nasdaq is up at midday, thanks to Tesla and its strong earnings report after the bell last night. The other major indices are flat to down. Bonds are lower with the 10-year Treasury note down 4 bps at 4.20%. Meanwhile, oil is steady at $71 per barrel.

IBM looks to be a part of every aspect of an enterprise’s IT needs. The company primarily sells software, IT services, consulting, and hardware. IBM operates in 175 countries and employs approximately 350,000 people. The company has a robust roster of 80,000 business partners to service 5,200 clients—which includes 95% of all Fortune 500. While IBM is a B2B company, IBM’s outward impact is substantial. For example, IBM manages 90% of all credit card transactions globally and is responsible for 50% of all wireless connections in the world.

Not long ago, the only way to gain exposure to Bitcoin was to invest in it directly. The process was arduous and required self-service in an unregulated market. But investing in Bitcoin has come a long way thanks to the January debut of spot Bitcoin ETFs. This new type of security gives investors exposure to Bitcoin without the need to buy, store, or manage it. In less than a year, investors have shown their support by collectively pouring over $65 billion into these securities. Convenience isn't the only advantage. Bitcoin ETFs operate in regulated financial markets that provide a degree of security and transparency. They are offered by reputable asset managers, many of them household names, and the funds offer better liquidity than the underlying security. With the value of Bitcoin nearing $70,000, the ETFs have outperformed the S&P 500 since their inception. Despite the results, investors should be cautious. Like the underlying asset, Bitcoin ETFs come with volatility. The same funds that outperformed the S&P 500 on a year-to-date basis underperformed the index on a three-month and six-month basis. Should you invest in Bitcoin ETFs? While we expect the volatility of the underlying security to decline over time, that expectation remains speculative for now. The recent results demonstrate that Bitcoin ETFs may offer attractive returns for investors with a long-term investment horizon and high tolerance for risk. In the near-term, Argus believes there may be a place for Bitcoin ETFs with limited exposure in an aggressive diversified portfolio.