As the crypto markets continue to trend upward post bitcoin halving, many believe that the next crypto bull run is upon us through the end of 2020 and into 2021. If this is the case, bitcoin and altcoins aren’t your only to get exposure to a fast growing crypto market. Below are 6 assets you can find in the traditional markets that either have provided exposure to crypto or are expected to.
Voyager Digital – VYGR or VYGVF – One of the only publicly traded crypto exchanges, Voyager Digital can be found on the Canadian Stock Exchange and OTC on platforms like TD Ameritrade or Fidelity at the ticker VYGR. Voyager has been steadily increasing throughout 2020 and is expected to soon receive a Bitlicense, opening up their platform to New York State users. The Voyager app is commission free for users and provides an opportunity to earn interest on your crypto holdings. The user experience is clean and honestly at par if not better than Coinbase, less fees for users, not to mention that it hasn’t yet shown the same problems that Coinbase has in terms of crashing at inopportune times. If Voyager Digital can manage to expand their market share even a slight amount during the next crypto bull run, this stock could be in for a strong increase in price. It’s certainly worth at least a small investment if you believe crypto in general will continue to appreciate as it’s a solid proxy for crypto inflows.
Riot Blockchain – RIOT – Riot Blockchain is a crypto mining company whose stock skyrocketed during the 2017 crypto bull run and then crashed right along with it. Now trading in the $3-5 range, it hit $40+ at it’s peak. There is no guarantee it gets back there, but it is certainly possible if Bitcoin picks up steam and those more comfortable with traditional investing markets look for a Bitcoin proxy on the stock exchanges. This one can be found on Robinhood and most other investing platforms. It is already starting to increase in price as Bitcoin nears 20K, so we may be in for another sharp price increase if the bull run gets going in 2021. Given how hard it crashed after the last bull run, it’s certainly worth keeping in mind that this is a stock you probably will want to sell when it does increase and not be stuck holding it through the next time the price pulls back for a couple years.
Marathon Patent Group – MARA – Marathon Patent Group is another crypto mining company whose stock exploded in the 2017 crypto bull run only to quiet down after. It’s very similar to RIOT in terms of how you should view this stock, but again, has potential to outperform if crypto and bitcoin see another surge to an all time high. When crypto starts garnering mainstream attention due to rising prices, people are going to seek exposure to it, and MARA is one of the few ways to do so without buying crypto coins or tokens. Making it more appealing to these investors, the price of this and of RIOT are both sub $5 at the moment which is always appealing.
Grayscale Bitcoin Trust – GBTC – Grayscale Bitcoin Trust is an investment vehicle that has been red hot in 2019 and 2020 as they purchase more bitcoin as money flows into their fund. When people buy shares in the trust, Grayscale buys more bitcoin and they now hold nearly 500,000 bitcoins. This trust tracks Bitcoin but provides indirect exposure, meaning it doesn’t provide the same gains (or losses) that actually holding a bitcoin yourself does. It’s an okay option if you are looking to invest some portion of a traditional IRA or 401k into crypto because it’s really the only game in town (other than if you open a Bitcoin IRA), but if you are just investing in the individual asset, you’re likely better of just getting direct exposure through bitcoin itself.
MicroStrategy – MSTR – MicroStrategy is a business intelligence and software company that has been in crypto news and the mainstream media recently due to their purchase of 38,250 bitcoins at a then value of ($425 million) from cash on their balance sheet. CEO Michael Saylor made history in directing this purchase and has since been an outspoken evangelist for Bitcoin as a strong hedge against the declining value of the dollar and other fiat currencies. Prior to the Bitcoin news, the company was well positioned with a steady cash flow and resilience throughout different economic cycles. It is a unique move that perhaps we will see more companies make in the future, but for now Saylor’s outspoken support of Bitcoin, and the appreciating price of Bitcoin provide another interesting exposure to the crypto space from the traditional market side.
Square – SQ – Square, the payment company run by Twitter CEO & bitcoin supporter Jack Dorsey, recently made a more conservative bitcoin purchase of about 4,709 bitcoins at the value of $50 million (about 1% of their balance sheet). Square has been publicly supportive of cryptocurrency and it’s potential to help with economic empowerment, selling Bitcoin on it’s platform since 2018. Between Square’s balance sheet investment which is up significantly since their purchase, and the fact that users can buy and sell bitcoin on the Square platform, it’s another stock to keep an eye on as the crypto bull run heats up.
So there you have it, 6 publicly traded companies or funds that have a strong relationship to cryptocurrency and bitcoin. Only time will tell where this next crypto bull run will take the markets but these 6 stocks could act as an interesting way to gain exposure to crypto from the traditional finance side of the equation. As always, do your own research.