thecoinrepublic.com
- Investing in cryptocurrencies and assets similar to this has surged in popularity during this ongoing global health crisis
- The hype grew with the launch of bitcoin (BTC) futures exchange-traded fund (ETFs) over the past week
- Institutional investors – despite the growing trend of crypto assets – are still hesitant to delve into it as they cite the market’s volatility and ESG risks
The MSCI study
Morgan Stanley Capital International (MSCI) recently published a study and revealed that cryptocurrencies could be stealthily sliding through the portfolios of these institutional investors, hence, getting them exposed to crypto without them knowing. The financial firm explained that such exposure is originating from the indexes that are introducing crypto-related companies into the securities that the investors are closely monitoring. This includes well-established firms that want to invest in cryptocurrencies.
Further, it was stated that of the companies in the MSCI ACWI Index, 26 companies are said to have been exposed to cryptocurrencies. Moreover, MSCI’s ESG research-covered securities have discovered that 52 of the firms within the said roster also got exposed to cryptocurrencies.
Keeping a close eye on bitcoin
That said, these companies are still setting their sights on bitcoin as it remains the top dog among the digital tokens out there. Albeit that fact, the number of coins within the cryptocurrency space “has exploded in recent years,” according to MSCI. The company even cited the crypto exchange website of Coinbase because MSCI highlighted that the platform is as of late keeping track of over 5,000 coins adding that it helps in the trading of the biggest coins out there in terms of market capitalization.
MSCI further explained that while a lot of the cryptocurrencies out there are deemed as “speculative investments” with minute evident utility, only a few of these crypto-assets have experienced such success as “genuine currencies,” not to mention that a majority of them claims to give their investors with hefty returns. MSCI went on to state that such growth has facilitated both the popularity of companies that got exposed to cryptocurrencies and the efforts exerted by established firms to gain crypto exposure.