The crypto market is extremely volatile. However, investing in stocks issued by digital asset companies insulates investors from market volatility. Investing in digital asset companies also eases for the investors the buying and secure holding of digital assets.
It is also easy for institutional investors to invest in digital assets via these digital asset companies. The stocks of these companies are traded on Nasdaq. Even big companies such as Nvidia and AMD are now investing in crypto. For institutional investors, investing in crypto through digital asset companies helps in diversifying their investments. Additionally, the investors also gain from the overall upward movement in crypto, while being insulated from the volatility of the market.
Some of the well-known digital assets firms available for investment by institutional investors are Coinbase, Microstrategy, Riot Blockchain, PayPal, Marathon digital holdings, Hut8 mining, and EQONEX. Coinbase is a publicly traded company listed on the Nasdaq and is valued at $100 billion. Coinbase plans to soon introduce a debit card that customers can use to spend their digital assets.
Microstrategy has over 40% of it assets as BTC. With 100,000 BTC it is now a well-known firm among investors. Riot blockchain is a US firm that is publicly listed and is into bitcoin mining. The firm is poised for growth and is set to attract greater investments.
Paypal, although not a pure crypto company, allows its customers to deal in many cryptocurrencies including BTC. Marathon Digital Holdings is listed on the Nasdaq. The firm plans to partner with Compute North in BTC mining. The firm can mine upto 50 bitcoins per day and is valued at $5 billion.
Hut8Mining has a different approach to mining. The firms has scalability built into its business model. The firm currently holds 4,724 bitcoins. EQONEX provides financial advisory while also being a digital assets firm. It is not among the bigger crypto exchanges. However, it claims credit for its regulatory compliance and for not trading in opposition to its clients.