Goldman Sachs: Crypto-related Stocks Outperform S&P500

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Major US business banks are faced with a growing problem. Their clients want to invest in crypto, a product which they don’t offer.

Both JP Morgan and Goldman Sachs have in recent months therefore done a 180 degrees turn when it comes to Bitcoin and blockchain, although they are still steering clear of offering direct purchase into crypto.

Instead, they offer indexes and funds with blockchain and crypto related stocks. As of yesterday, Goldman (who even offers a Bitcoin-related fund now) had to admit that these stocks are clearly outperforming the S&P500.

19 Stocks

No less than 19 stocks were identified by Goldman Sachs as being blockchain related and thus worthy of investment if you wanted to shy away from Bitcoin itself but still believed in the growth potential of blockchain and all things crypto.

According to Goldman, the big winners so far this year are the two Bitcoin mining stocks we told you about half of March already.

Goldman Sachs Pinpoints Crypto-Related Stocks that Outperformed Major Stock Indexeshttps://t.co/ECIC3LokDg pic.twitter.com/YYSAZyySis

— Coinspeaker (@coinspeaker) April 28, 2021

RIOT and MARA refer respectively stand for Riot Blockchain Incorporated and Marathon Digital Holdings Incorporated. They are both Bitcoin mining stocks which are highly popular on social media in the US as well. Their 7,000% rise since Bitcoin broke through the $10k level last year is of course not surprisingly linked to this.

Other picks included MicroStrategy, Square, PayPal and NVIDIA. So far, the group of 19 stocks identified by Goldman has trounced the S&P 500 during the first four months of 2021.

Goldman claimed that:

An equal-weighted portfolio of the stocks has demonstrated roughly 60% correlations with bitcoin and the Bloomberg Galaxy Crypto Index during the last several months, compared with 20% correlations for the S&P 500.