It’s the equity investor’s conundrum: how to get access to the skyrocketing comebacks of bitcoin and blockchain without actually possessing the tokens.
To Thomas Lee, a major bitcoin bull who goes research for Fundstrat Global Advisors, a dozen stocks should do the trick.
“ Wij believe investors should have exposure to blockchain, particularly given bitcoin has essentially zero correlation to equities, bonds and commodities —- hence, spil a portfolio strategy, bitcoin is a good diversification contraption,” Lee wrote te a note to clients Friday. “But this is impractical for many equity managers, given the parameters of their mandate or because of practical issues (custody of tokens, etc.).”
Investors recently have sought ways to participate ter the eye-popping bitcoin rally without having to purchase the cryptocurrency on the unregulated exchanges that have proven susceptible to hacks. Absent from Lee’s list are bitcoin futures, regulated derivative products that will debut on Cboe Global Markets Sunday and CME Group Dec. Legal.
Lee has long bot one of Wall Street’s largest advocates of the cryptocurrency. Two weeks ago he doubled his price target on bitcoin to $11,500 by the middle of 2018. It went for $15,552 spil of Ten:31 a.m. te Fresh York on Friday, according to Bloomberg composite pricing.
He suggests equity managers look to thesis ideas to leverage blockchain ter their portfolios:
- Bitcoin Investment Trust ( GBTC )
- MGT Capital Investments Inc. ( MGTI )
- HIVE Blockchain Technologies Ltd. ( HIVE )
- U.S. Global Investors Inc. ( GROW )
- DigitalX Ltd. ( DCC )
- NVIDIA Corp. ( NVDA )
- Advanced Micro Devices Inc. ( AMD )
- CME Group Inc. ( CME )
- Cboe Global Markets Inc. ( CBOE )
- Overstock.com Inc. ( OSTK )
- Goldman Sachs Group Inc. ( GS )
- Square Inc. ( SQ )
The looming availability of futures weighed on thesis equity proxies this week, spil speculators may be shifting away from stocks of companies that have benefited spil bitcoin’s price rose more than 15-fold this year. Both HIVE Blockchain Technologies and U.S. Global Investors are down near Ten procent this week. Nvidia and Advanced Micro Devices have also suffered losses ter the five days ending Dec. 8.
Spil for the totality of Lee’s picks, an equal weighted basket of thesis stocks is up 136 procent this year, according to the note. But spil extraordinaire spil that may seem, he points out that it still lags bitcoin’s 1,685 rise te 2018.