Investment bank Goldman Sachs has compiled a list of 19 large-cap stocks with cryptocurrency exposure that have massively outperformed the S&P 500. â€œOn average, these stocks have dramatically outperformed the S&P 500 during the last several months alongside the surge in the price of bitcoin,â€ the firm wrote.
19 Stocks With Crypto Exposure That Outperformed S&P500
Ben Snider, the bankâ€™s strategist and managing director, said: â€œOur screen yields 19 stocks with market caps greater than $1 billion â€¦ On average, these stocks have outperformed the S&P 500 by 34 percentage points year to date (+46% vs. +12%).â€ He noted that during the same time period, the price of bitcoin rose by 86% and Bloomberg Galaxy Crypto Index increased 156%.
The Goldman Sachs strategist elaborated:
The stocks on Goldmanâ€™s list are Marathon Digital Holdings; Riot Blockchain; Microstrategy, 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.
The analysts at Goldman Sachs used a three-pronged strategy to find these stocks. The first is a â€œText search,â€ in which the firm looked for keywords such as â€œblockchainâ€ and â€œcryptocurrencyâ€ in company filings, earnings calls, presentations, and news articles over the past 12 months.
Secondly, the firm used â€œRegression beta analysisâ€ to test for regression beta of these company share prices relative to bitcoin, or how much the shares moved if the price of bitcoin moved. Lastly, the firm examined the inclusion in 3rd party blockchain indexes and exchange-traded funds (ETFs).
Meanwhile, Goldman Sachs has brought back its bitcoin trading desk and will be launching a â€œfull spectrumâ€ of crypto investment products. In March, the firm reported seeing huge institutional demand for BTC. CEO David Solomon said early this month that he expects a â€œbig evolutionâ€ coming to cryptocurrency regulation.
What do you think about Goldman Sachsâ€™ list of crypto stocks that outperformed the S&P 500? Let us know in the comments section below.
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