Experts warned of growing impact of cryptocurrencies on portfolio performance

Experts warned of growing impact of cryptocurrencies on portfolio performance

The combined market value of shares in 52 companies that are linked in some way to digital assets stands at $7.1 trillion, according to financial data provider MSCI, which increases the sensitivity of securities portfolios to what is happening around cryptocurrencies.

The list includes bitcoin exchange Coinbase, holders of digital gold as a backup asset Tesla and MicroStrategy, as well as companies that have started offering access to cryptocurrency-based products, like financial holding company JPMorgan Chase.

Institutional investors may underestimate the "creeping" impact of cryptocurrencies as stocks of companies that have built businesses on them enter indexes and securities of players added to their portfolios begin to creep into the space.

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The MSCI report talks about the impact of a volatile asset class through the lens of ESG compliance. In particular, mining, lack of cryptocurrency accounting standards and transparency of networks can pose challenges.

The company has drawn attention to the lack of knowledge about digital assets among board members of public companies.

According to Bloomberg, MSCI examined the biographies of about 6,500 top executives and noticed that only 79 people referred to cryptocurrency or blockchain. At the same time, 1,114 listed cybersecurity among their competencies and 5,155 listed risk management.
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"In other words, boards will need more laser-eyed [bitcoin supporters] given the impact of cryptocurrencies on business," the experts concluded.

Recall that in October, the SEC approved Volt Equity's application to launch an exchange-traded fund (ETF) for a basket of stocks of companies "revolutionising the bitcoin industry".

Earlier, investment firm Invesco launched two blockchain industry-focused ETFs.

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