Wall Street giant Goldman Sachs has identified a new group of cryptocurrency-related stocks that are performing much better than the index itself.
In a note to investors on Tuesday, April 27, investment bank analysts highlighted 19 US stocks with a market value of over $ 1 billion and strong ties to the cryptocurrency and blockchain industries.
Investment gurus Goldman said many of these stocks are “significantly better than the broader stock market, with companies achieving an average return of 43% this year, more than tripling the 13% the S&P 500 received in the same period. … …
The two largest stocks were cryptocurrencies Marathon Digital Holdings and Riot Blockchain, with gains of 218% and 151% YTD, respectively.
Tesla also had a successful year, with shares reaching a full-time high of $ 883 in January, two weeks before the company announced it had invested $ 1.5 billion in bitcoin. Facebook is also cited as a major space operator planning to launch the cryptocurrency this year.
Another Bitcoin sponsor is MicroStrategy, whose stock price rose sharply in mid-April before Bitcoin itself reached a full-time high of $ 65,000. Goldman estimates that the company owns approximately $ 4.5 billion in BTC assets.
Payment company Jack Dorsey’s Square also invested in cryptocurrencies and bought $ 220 million worth of bitcoin. Other payment giants that lean heavily on cryptocurrencies include PayPal, MasterCard and Visa, all of which offer some form of payment for digital assets and even trade in some cases.
Goldman analysts note that two major banks, BNY Mellon and JPMorgan Chase, have spearheaded the implementation of the blockchain in cryptocurrency and interbank transactions.
Rounding off the list are US Coinbase, exchange operator Overstock.com, blockchain pioneer IBM, microchip maker Nvidia, financial services companies, InvestView, Broadridge Financial and Ideanomics.
In a note to clients last week, Dan Ives, an analyst at investment firm Wedbush Securities, outlined the bigger picture:
“The story and theme is much more than just investing in bitcoin and predicting the likely price path … it’s about the potential implications that cryptocurrency, blockchain and bitcoin could have for the corporate world over the next decade.”
As Cointelegraph reports, hundreds of funds are making significant investments in the cryptocurrency and blockchain industries, despite not having a US ETF from Bitcoin.