Tap Into Crypto Exposure with These 2 Stocks
Wednesday, Jan 22, 2025 12:03 pm ET
5min read As the cryptocurrency market continues to grow and gain mainstream acceptance, investors are increasingly seeking ways to gain exposure to this burgeoning asset class without directly managing digital assets. Two stocks that stand out as attractive investment options for those looking to tap into the crypto market are Coinbase Global Inc. (COIN) and Block Inc. (SQ). Both companies have strong fundamentals and unique offerings that make them compelling investments in the crypto sector.
Coinbase Global Inc. (COIN) is one of the largest cryptocurrency exchanges in the world, providing financial infrastructure and technology for the "crypto economy" in the United States. The company operates a regulated venue in the digital assets space, making it a legitimate and trustworthy platform for domestic participants. Coinbase's willingness to engage with regulatory bodies, such as the Securities and Exchange Commission (SEC), gives it a measure of legitimacy in an industry that is still evolving. The company's stock has outperformed both Bitcoin and Ethereum in its recovery from the 2022 crash, with a gain of +308% from its lowest point compared to BTC's +148% and ETH's +131%.
Block Inc. (SQ), previously known as Square, is a leading digital and mobile payment platform with a strong focus on blockchain technology and digital assets. The company's development of Cash App, a platform for buying, selling, sending, and receiving bitcoin, has contributed to its success in the crypto market. Block has invested a cumulative $220 million directly in bitcoin, demonstrating its commitment to the cryptocurrency sector. Despite underperforming other companies on this list in 2023, Block's long-term potential and aggressive investment strategy make it an attractive option for investors with a higher risk tolerance.
In conclusion, Coinbase and Block Inc. stand out as attractive investment options for those seeking exposure to the crypto market without directly managing digital assets. Their strong fundamentals, unique offerings, and commitment to the crypto sector make them compelling investments in the rapidly evolving cryptocurrency landscape. However, investors should be aware of the risks associated with the volatile crypto market and engage in thorough research before making any investment decisions.
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