SoFi Switches On Bitcoin’s Lightning—What It Means For Crypto ETFs – ARK Fintech Innovation ETF (BATS:ARKF), Bitwise Crypto Industry Innovators ETF (ARCA:BITQ)

SoFi Technologies Inc SOFI is making waves in fintech. Despite a recent dip, Wall Street is divided on its outlook after a series of bold moves.

JPMorgan and Citigroup raised price targets, with Citi reiterating a Buy following SoFi’s strong Q2: record revenue of $655.8 million (+26% YoY) and GAAP net income of $54.7 million, alongside an upgraded full-year outlook fueled by robust loan originations and a growing member base.

SOFI seems to have ample room for growth. Check its prices live, here.

But SoFi isn’t stopping at banking and loans. Last week, it partnered with Lightspark to launch an international crypto-powered money transfer service, starting with Mexico. Using the Bitcoin Lightning Network, users can temporarily convert dollars to Bitcoin and back to local currency—essentially turbocharging remittances.

For ETFs, this dual narrative is intriguing. On one hand, SoFi’s growth story could lift fintech funds like Global X FinTech ETF FINX and ARK Fintech Innovation ETF ARKF, where SoFi is a notable holding. On the other, the crypto angle makes SoFi a rare bridge between banking and blockchain, potentially benefiting thematic funds like Amplify Transformational Data Sharing ETF BLOK.

Even cryptocurrency-dedicated ETFs such as Bitwise Crypto Industry Innovators ETF BITQ and VanEck Digital Transformation ETF DAPP might experience a ripple. Though they don’t have SoFi on their holdings, more widespread adoption of Bitcoin infrastructure by traditional players gives validation to the technology and can enhance sentiment toward the blockchain names within those funds.

The catch? SoFi’s announcement of a $1.5 billion public share offering to raise capital sparked dilution worries, putting near-term pressure on the stock. For ETFs, this could create volatility, but also buying opportunities for managers bullish on SoFi’s longer-term fintech-plus-crypto play.

With the global remittance market worth more than $740 billion (as valued at the end of 2024) and Bitcoin gaining mainstream traction, SoFi’s latest steps could influence not just its stock but also the ETFs riding the fintech and crypto waves.

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