Wall Street banking giant Goldman Sachs has identified an emerging group of crypto-related stocks that perform much better than the index itself.
In a note to investors on Tuesday, April 27, analysts at the investment bank highlighted 19 U.S. stocks that had a market capitalization of over $ 1 billion and strong ties to the crypto industry. currency and blockchain.
Goldman’s investment gurus said many of these stocks had “significantly outperformed” the stock market as a whole, with companies averaging a 43% return this year, more than three times the 13% that the S&P 500 had gained during the same period. .
The top two stocks were crypto mining companies Marathon Digital Holdings and Riot Blockchain, with gains of 218% and 151% year-to-date respectively.
Tesla also had a strong year, with the stock hitting an all-time high of $ 883 in January just weeks before it announced its $ 1.5 billion investment in Bitcoin. Facebook has also been cited as a big dabbler in space with plans to launch its own cryptocurrency this year.
Another of Bitcoin’s backers is MicroStrategy, which saw its share price explode in mid-April, just before Bitcoin itself hit an all-time high of $ 65,000. Goldman estimates the company has BTC holdings valued at around $ 4.5 billion.
Jack Dorsey’s payment firm Square has also invested money in crypto assets with a $ 220 million Bitcoin buying spree. Other payment giants that lean heavily towards crypto include PayPal, MasterCard, and Visa, all of which offer some form of digital asset payment and even trading in some cases.
Goldman analysts noted that two large banks, BNY Mellon and JPMorgan Chase, have been spearheading blockchain adoption through crypto custody and interbank transactions.
The list has been completed by US exchange Coinbase, exchange operator Overstock.com, blockchain pioneer IBM, microchip maker Nvidia, and financial services firms InvestView, Broadridge Financial and Ideanomics.
In a note to clients last week, Dan Ives, analyst at investment firm Wedbush Securities, gave the big picture:
“The story and theme here is much broader than just investing in Bitcoin and predicting its potential price path … These are the potential ramifications that crypto, blockchain, and Bitcoin could have in the corporate world over the next decade. ”
As reported by UKTN, hundreds of funds have made significant investments in the crypto and blockchain industries despite the absence of a U.S. Bitcoin ETF.