Bitcoin bull Tom Lee has identified 12 stocks that are perfect if you don’t want to own it (GBTC, MGTI, GROW, HIVE.CN, DCC.AU, NVDA, AMD, CME, CBOE, OSTK, GS, SQ, XBT)

Bitcoin is still too risky for many investors with a lot of money at stake.  

But there's a handful of stocks that stand to benefit from bitcoin and the underlying blockchain technology, according to Tom Lee, a strategist at Fundstrat and one of the most prominent advocates for the cryptocurrency.

The basket of 12 stocks he recommended in a note Friday has gained 136% this year. That's more than the S&P 500's 18% rally, but is dwarfed by bitcoin's 1,588% rise.  

"We believe investors should have exposure to blockchain, particularly given bitcoin has essentially zero correlation to equities, bonds and commodities — hence, as a portfolio strategy, bitcoin is a good diversification tool," Lee said. He sees one bitcoin costing $25,000 by the end of 2022. 

The stocks Lee recommends offer "three types of leverage—  (i) price gains of bitcoin/tokens; (ii) transaction activity (either wallets or exchanges); and (iii) mining based on proof of work or proof of stake." 

Here they are, in ascending order of how much exposure Lee estimates they have to bitcoin:

Square

Ticker: SQ

Market cap: $14.8 billion

Year-to-date performance: 179% 

Comment: Allows bitcoin to be bought and sold, accepts bitcoin.

Source: Fundstrat

Goldman Sachs

Ticker: GS

Market cap: $94.4 billion

Year-to-date performance: 4.5% 

Comment: Likely "first mover" investment bank in bitcoin. 

Source: Fundstrat

Overstock

Ticker: OSTK

Market cap: $1.13 billion

Year-to-date performance: 158% 

Comment: Accepts bitcoin and owns Medici Ventures, its blockchain subsidiary.

Source: Fundstrat

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Contributer : Tech Insider http://ift.tt/2jxQHLv

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