Categories Analysis, Markets, Technology

Top stocks to exploit rising adoption of blockchain technology

Testifying before a Congressional panel this week, Twitter (TWTR) CEO Jack Dorsey stated that the social media giant was exploring the application of blockchain technology to plug scams and identity theft effectively. Dorsey is also the head of payment services firm Square, which has displayed immense interest in the blockchain technology.

While cryptocurrencies have had a muted year so far compared to a spectacular show in 2017, fascination towards blockchain has only increased, thanks to the increasing number of applications as well as security if offers.

Though many investors are interested cryptocurrencies, decentralized exchanges and the constant threat of hackers stop them from betting their money in this space. However, the rising absorption of the technology by traditional firms has given rise to safer alternatives for investments, including crypto stocks and ETFs. Here are a few.

top stocks with blockchain exposure cryptocurrency
Photo by Hitesh Choudhary on Unsplash

NVIDIA (NVDA): The Santa-Clara, California-based chipmaker is probably the stock that you are looking for. The company’s graphics processors, originally manufactured for use in computer games, are presently widely used by crypto miners. The stock has received a significant fillip with the increase in blockchain adoption, increasing 37% year-to-date.

The fact that Nvidia is not a true-breed crypto stock makes it relatively immune to the volatile nature of the market. Since blockchain is only a part of its operations, risk element is considerably lower.

IBM (IBM): Though many tech firms are slowly investing in blockchain and related start-ups, none has gained a headstart like International Business Machines Corp (IBM). In fact, the company has recently been seen betting heavily on the blockchain, sending many traditional investors into a frenzy.

The New-York based firm has over 500 blockchain-related projects running, primarily in the food, banking, health, and shipping industries. If, or when the technology takes off, the company would be well-positioned to reap the benefits.

The fact that Nvidia is not a true-breed crypto stock makes it relatively immune to the volatile nature of the market. 

Bitcoin Investment Trust (GBTC): The trust operated by Grayscale Investments offers the best mechanism to trade bitcoins in a more secure platform of stock exchange. The company’s asset portfolio features a fraction of a bitcoin, and any volatility in bitcoin valuation will directly translate to GBTC shares.

Apart from these, investors also have a slew of ETFs that either invest in firms that operate in the blockchain realm or track crypto asset performance, including First Trust Indxx Innovative Transaction & Process ETF (LEGR) and Amplify Transformational Data Sharing ETF (BLOK).

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