Crypto stocks related to cryptocurrencies have been significantly growing since 2021. Goldman Sachs has released a report to its investors showing how 19 crypto stocks in its portfolio have been performing.
Goldman Sachs, a global investment management firm, has released a report showing the performance of stocks related to crypto assets and blockchain. The firm has prioritized the stocks that could rise again if Bitcoin prices increase. This report comes after the prices of cryptocurrencies, and other related products have steadily surged since the beginning of 2021.
The growth of crypto stocks
Companies that deal in the crypto field have been looking to attract and maintain investors in the fast-growing industry. The growth of digital assets has boosted the growth of companies in the industry, with some growing at a faster rate than the assets they offer. For example, during the recent Bitcoin bull rally, some crypto assets grew four times the value of underlying market products.
One of the reasons increasing the value of crypto stocks more than the value of crypto assets is that investors are not willing to invest directly in the market. To navigate this, firms in the industry give their clients some form of exposure by investing in firms that add value to the crypto market.
For example, an investor may be more willing to buy crypto stocks from MicroStrategy than purchasing and holding Bitcoin directly.
Crypto Stocks included in the report
Goldman Sachs’ analyst, Ben Snider, headed this report, in which he stated that the stocks included were those closely related to Bitcoin and other crypto-assets. In addition, he limited the report to include stocks that have a market cap of more than $1 billion.
The first phase of the report included secluding stocks with press releases or other official publications that included Bitcoin and Blockchain. They also evaluated external news articles and their views on the business models of those stocks.
In the second phase, Snider excluded all companies that did not regularly update their Bitcoin prices with the currency’s market value. Finally, the analyst filtered the stocks by looking at how the firms interacted with six ETFs and blockchain-related indexes. This detailed analysis gave the firm an overview of crypto stocks that will perform well in the future.
The companies included in the report include Tesla, MasterCard, JPMorgan, Nvidia, PayPal, Riot Blockchain, Marathon Digital Holdings, MicroStrategy, Facebook, Silvergate Capital, Overstock.com, Bank of New York Mellon, IBM, Coinbase Global, Broadridge Financial Solutions, Investview, Ideahomics, and Visa. However, even with this report, Goldman Sachs has still clarified that investing in crypto stocks is still risky.