Major Development: These 52 Companies Have Invested In Cryptocurrency

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According to financial firm MSCI, investors (ESG) focusing on environmental, social and governance issues are starting to show more and more interest in cryptocurrencies.

According to the report of the ESG team, 52 companies are investing in cryptocurrencies

The index provider said at least 52 publicly traded companies covered by MSCI ESG Research have invested in cryptocurrencies , which represent approximately $7.1 trillion in market capitalization, or about 6.6% of the unit’s covered market value, according to the ESG team’s podcast. . MSCI ESG Research made the following statements in the report:

While most cryptocurrencies are speculative investments with little benefit, some have had limited success as real currencies and many have recorded dazzling returns. This growth has contributed to both the rise of companies investing in cryptocurrencies and the efforts of incumbents to raise interest in cryptocurrency.

Convenient access to bitcoin and altcoins comes from a number of companies, such as exchange operator Coinbase , which went public in April . Other names include Facebook, which does not save any revenue from cryptos but is exploring ways to monetize the system, and Nvidia, the manufacturer with a dedicated graphics processing unit for professional miners.

Crypto products are at risk when MSCI adds newly listed crypto companies to indices, or when companies already owned by investors engage in activities involving Bitcoin or other altcoins – either directly or through indices . Companies exposed to crypto include 26 components of the MSCI ACWI Index, the company’s flagship global equity index, which measures the performance of some large and mid-cap stocks in 23 developed and 27 emerging markets, and the index includes more than 2,900 components across 11 industries.

Meanwhile, investors turning to crypto may also go against their ESG goals. Environmental risks from bitcoin and altcoins include greenhouse gas emissions from energy use and electronic waste. Governance risks include boards of companies whose risk management policies are geared towards cybersecurity and anti-money laundering.