Today, cryptocurrencies, such as Bitcoin, Solana, and Ethereum, have become the main topic among investment enthusiasts globally. Nevertheless, some investors are still not sure about holding crypto coins directly, partly due to their volatility.
Fortunately, these investors have a safer way of reaping the benefits of crypto coins by purchasing stocks of listed companies that engage in different aspects of the cryptocurrency market. Even though investors won’t deal in crypto directly, these listed companies can strategically expose investors to digital assets without risking the high volatility of crypto coins.
Here are three publicly-listed enterprises cashing in big on crypto demand in 2022.
1. CME Group Inc
CME Group is a publicly listed company that deals in exchanges enabling enterprises, individual investors, and suppliers to trade derivatives and futures based on metals, equity indexes, interest rates, foreign currencies, etc. In addition, CME Group owns a 27% stake in S&P/Dow Jones Indices, which makes it perfect for trading and clearing S&P futures contracts.
Currently, CME Group ranks behind Binance as the largest bitcoin futures trading ecosystem. Over the past few years, low short-term interest rates have become the greatest hindrance for the company. Often, if the interest rates are anticipated to remain low, the need for less incentive for speculation and interest rate hedging reduces. In turn, this establishes a drag on CME Group’s trading volume.
Nevertheless, since the company’s interest rates are rising, the drag has been eliminated, and the company is expected to recover its trading volume. Therefore, CME Group is expected to expand in 2022, with market conditions favoring the company.
2. Coinbase Global Inc
Coinbase, United States’ biggest crypto exchange platform, offers enterprises and retail investors a safer and regulation-complaisant exposure to crypto coins. By excluding the need for a broker, Coinbase Global performs the duty of a guardian for investors’ crypto coin holdings. This way, the company creates wider consumer engagement compared to the usual financial exchanges.
Coinbase Global recorded good results in its fourth quarter, reaching new all-time highs in its trading volume and revenue. These outcomes resulted from the continued adoption of crypto assets that enticed new clients to the platform and the rising crypto coin prices.
As the most popular crypto coin exchange platform in the US, Coinbase Global has properly oriented itself as a dependable platform for novice and seasoned crypto coin traders alike. Coinbase Global’s track record, regulatory complaisance, and public image as a custodian have enabled it to sustain its competitive advantage over competitors.
3. Block Inc Class A
Block runs a Cash App customer payments platform, bank, physical debits cards, and stock and crypto coin trading platform as an international technology company. The company, previously referred to as Square, acquired Tidal and Afterpay services. Block operates in the UK, Japan, Canada, and Australia.
The rapidly-expanding payments company has invested big in the key crypto coin, Bitcoin. In 2020, for instance, Block bought US$50 million worth of Bitcoin and added US$170 million in 2021. Recently, the company revealed that it’s developing an open bitcoin mining system in its efforts to expand its operations away from its core payment business. The company’s success comes from its highly innovative POS system, efficient customer onboarding, and flat charges.