Analysts consider them a good opportunity to enter the world of cryptocurrency money, without “exposing themselves” to its volatility. Its performance has a certain correlation with what happens with bitcoin.
At times when bitcoin is in the news practically daily, sometimes due to its extraordinary rises and others, due to its sudden collapses (like the one that occurred on Wednesday, after the words of Elon Musk), specialists highlight the opportunity to bet on the world “crypto” without exposing yourself to its volatility. In short, these are shares of companies that are listed on Wall Street and have a relationship – either direct or indirect – with the most demanded digital assets. And, in all cases, they presented strong increases during the last year.
A report prepared by the firm InvertirOnLine, highlights the options to invest in shares of this type of companies as a result of the “revolution” in the markets that generated the initial public offering of the Exchange Coinbase site a few weeks ago.
Analysts consider them a good opportunity to enter the world of digital assets, without “exposing themselves” to its volatility. Its performance has a certain correlation with what happens with bitcoin.
“Our list of companies seeks to reflect those companies that generate at least 50% of their income from some of the activities related to digital assets,” said the study, which among other indicators highlights “the correlation coefficient with respect to bitcoin, which reflects the average relationship between the daily variation of the company’s share price and the cryptocurrency: for example, if the correlation of an asset is 0.5, it implies that if bitcoin one day rises 1%, it is to expect that the action of the asset does it by 0.5% ”.
These companies, with a “direct” relationship with digital assets, are the bitcoin mining firm Marathon Digital Holdings, which in the last year (until April) had a yield of 7332%; the also mining company Riot Blockchain, which soared 3761%; the software firm Canaan, which in the last twelve months climbed 222%; and Silvergate Capital Corp, a banking and asset management firm, which soared 860%.
“Although the market for companies related to publicly traded digital assets is still young, it has grown in both size and revenue in recent years, despite the underlying volatility in the digital assets themselves. We believe it is a nascent market with good scope for growth and that as use cases and adoption of digital assets grow over time, these pioneering companies can benefit, as more companies will follow the listing path. public, ”the report added.
“We see these actions as a way to position yourself in crypto, without being exposed to all the complexity of the crypto world, since there is a large public that does not invest due to this complexity. We see it interesting since, for the public that invests in shares, it is one more action, with the advantage that all these companies have an income of at least 50% linked to digital assets,” explained Maximiliano Donzelli, head of Research by InvertirOnLine, who highlighted that these companies have lower volatility than bitcoin.
“For the Argentine who wants to invest from Argentina, there are also options for companies indirectly linked to crypto: they are interesting because all these firms have Cedear: Nvidia (hardware), Paypal (means of payment), Square (means of payment and Exchange) and Taiwan Semiconductor Manufacturing (also hardware). These are better known and have less correlation with respect to the performance of bitcoin since they have a lower range linked to cryptocurrencies, it is greater than 10% but less than 50%. They are companies that invest in other things: if cryptocurrencies fall, they can be sustained ”, concluded Donzelli.