Crypto Stocks Soar as SEC Paves Way for Stock Tokenization

The financial sector experienced a mixed week as traditional finance names weakened while crypto-related stocks climbed. The State Street Financial Sector SPDR ETF XLF dipped 2.4% for the week ended Sept. 18, a steeper decline than the S&P 500's 0.1% tick down.

The KBW Nasdaq Bank Index BBKX took an even bigger tumble, dropping 4.9%. This decline comes after the first Federal Reserve rate hike in more than three years and a move by the Securities and Exchange Commission to allow trading of tokenized stocks.

Bitcoin BTCUSD ended the week up ~4.8%, rising to almost $81K on Friday, its highest level since early May. The five biggest gainers for financial stocks with market cap over $2B were: