Investment bank Goldman Sachs has compiled a list of 19 large-cap stocks at cryptocurrency risk that have massively outperformed the S&P 500. “On average, these stocks have dramatically outperformed the S&P 500 over the past few months, along with the rise in Bitcoin price,” the company wrote.
19 stocks with crypto exposure that outperformed the S & P500
Goldman Sachs released a research note last week listing 19 US large-cap stocks with blockchain and cryptocurrency risks that outperformed the S&P 500.
Ben Snider, strategist and chief executive officer of the bank, said, “Our screen shows 19 stocks with market caps in excess of $ 1 billion. On average, these stocks have outperformed the S&P 500 by 34 percentage points since the start of the year (+ 46% versus +) 12%). “He found that the price of Bitcoin rose 86% and the Bloomberg Galaxy Crypto Index rose 156% over the same period.
The Goldman Sachs strategist explained:
On average, these stocks have dramatically outperformed the S&P 500 over the past few months, along with the rise in Bitcoin price.
The stocks on Goldman’s list are Marathon Digital Holdings; Riot Blockchain; Micro-strategy, class A; Silvergate Capital Corp., Class A; Square, class A; Paypal Holdings; Overstock; Nvidia; Investview; Ideanomics; Tesla; JPMorgan Chase; Visa, class A; Bank of New York Mellon Corporation; Facebook, Class A; Mastercard, class A; Broadridge Financial Solutions; IBM; and Coinbase, Class A.
Goldman Sachs analysts used a three-pronged strategy to find these stocks. The first is a “text search” where the company has searched corporate files, earnings calls, presentations, and news articles for keywords such as “blockchain” and “cryptocurrency” over the past 12 months.
Second, the company used “regression beta analysis” to test the regression beta of these stock prices relative to bitcoin, or to see how much the stocks moved when the bitcoin price moved. Finally, the company investigated inclusion in third-party blockchain indices and exchange traded funds (ETFs).
In the meantime, Goldman Sachs has brought back its Bitcoin trading desk and will launch a “full spectrum” of crypto investment products. In March, the company reported tremendous institutional demand for BTC. CEO David Solomon said earlier this month he expected a “big move” in cryptocurrency regulation.
What do you think of Goldman Sachs’ list of crypto stocks that outperformed the S&P 500? Let us know in the comments below.
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