crypto: Want to play the crypto game via equities? Here are names to add to your watchlist

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The cryp­to assets craze has been ris­ing in India. Sev­er­al investors, who are scep­ti­cal about direct cryp­to invest­ments, are play­ing the theme via equities.

Some of the top names from the sec­tor include Nvidia, CME Group, Block, IBM, Mas­ter­card, DocuSign, Ama­zon, Coin­base Hold­ings and Glob­alX Blockchain ETF. The major­i­ty of these stocks are list­ed on Nasdaq. 

Once a fren­zy, these spaces are now wit­ness­ing huge trac­tion in 2022 after phe­nom­e­nal returns in 2021, accord­ing to mar­ket experts.



These com­pa­nies, list­ed in the inter­na­tion­al mar­kets, are direct­ly engaged in cryp­to, blockchain NFTs or the meta­verse space, and investors are lap­ping up the shares of these companies.

Despite the poor per­for­mance in the Decem­ber quar­ter, Meta (for­mer­ly Face­book Inc) remains the top bet to play the theme. The com­pa­ny’s stock tanked 26 per cent in Thurs­day trade. 

Vinay Bharath­waj, co-founder and co-CEO, Stock­al, said there is a cryp­to buzz, and it is more than just an infla­tion hedge.

“These themes are gain­ing trac­tion and invest­ment banks like Gold­man Sachs and JPMor­gan are also set­ting up cryp­to spaces, allow­ing investors to par­tic­i­pate in these fast-grow­ing asset class­es,” he added.

The inter­est in hold­ing cryp­to assets is increas­ing among Indi­an investors. One can see that from the way cryp­to exchanges have grown in the country. 

Viram Shah, co-founder & CEO of Vest­ed Finance, said that the US mar­kets pro­vide a way to get indi­rect expo­sure to the world of cryp­tocur­ren­cy and meta­vers­es in three ways — invest­ing in com­pa­nies active in the space, invest­ing in com­pa­nies that hold or buy such assets, and invest­ing in ETFs that play in this sector. 

“Com­pa­nies direct­ly active in this space are the most pop­u­lar among the investors,” said Shah. “Coin­base and Meta were among the top 10 stocks pur­chased on the plat­form in the last one month.” 

Oth­er pop­u­lar stocks include Sil­ver­gate Cap­i­tal, Shopi­fy Inc, Pay­Pal Hold­ings, Accen­ture PLC, Robin­hood Mar­kets, Advanced Micro Devices, Square and Canaan. 

Vir­tu­al and aug­ment­ed real­i­ty are poised to be the future, with more par­tic­i­pa­tion and play­ers mov­ing to meta­verse in the com­ing years. Web 3.0, Meta and NFTs are prob­a­bly where investors will be look­ing ahead in 2022. 

It is a no brain­er that meta­verse is anoth­er hot top­ic on Wall Street apart from cryp­tos. Apart from stocks, there are some blockchain spe­cif­ic and cryp­to-spe­cif­ic ETFs as well, which investors are look­ing at. 

To play the theme, investors can look at stocks like Apple, Meta plat­forms, Microsoft, Nvidia, Roblox, Uni­ty Soft­ware, said Bharath­waj of Stockal. 

“One can look at cryp­to min­ing stocks like Marathon Dig­i­tal, Riot Blockchain, Hut8 Min­ing,” he added. 

Such stocks are inter­est­ing and reward­ing proxy play for an investor who wants cryp­to and blockchain expo­sure with­out direct­ly invest­ing or hold­ing any cryp­to assets. 

Mar­ket experts feel the action in the cryp­to space is just start­ing, and a lot is yet to hap­pen. A lot of val­ue cre­ation over the next decade, they said. 

“If we take a long-term view, then it’s dif­fi­cult for an investor to ignore expo­sure to this theme,” Shah of Vest­ed said. 

Experts believe that momen­tum in such assets is like­ly to con­tin­ue, thanks to the tax­a­tion announce­ment in the Union Bud­get, hint­ing towards a clear roadmap for the future. 

Asheesh Chan­da, founder & CEO, Kristal.AI, said many investors are look­ing to par­tic­i­pate in one of the most dis­rupt­ing trends of the cur­rent cen­tu­ry. Cryp­to ETFs offer a low cost and low-risk alter­na­tive to phys­i­cal cryptos. 

“For those who are new to this world and go google-eyed with all the jar­gon around cryp­to, ETFs may be a com­pelling option to con­sid­er,” he added. “The ETF route does not have this depen­den­cy even for peo­ple with a low learn­ing curve.”

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