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Bank of America identifies JP Morgan, Morgan Stanley, PayPal, and Walt Disney as 'digital assets exposed companies'

By Frances Yue

Bitcoin has rallied 4.8% over the past 24 hours, recently trading at $52,403, after SEC chairman Gary Gensler said on Tuesday that the U.S. won't ban cryptocurrencies like China did.

Bank of America has identified 20 U.S listed companies it rated "Buy" and "Neutral" that have exposure to digital assets.

The companies are those that "may see market value expansion due to digital asset exposure," BofA (BAC) said in a report led by Alkesh Shah, head of the bank's global cryptocurrency and digital asset strategy. The bank launched its digital asset research coverage on Monday.

The digital assets-exposed companies range from crypto exchange Coinbase Global (COIN), to banks JP Morgan Chase (JPM), Morgan Stanley (MS), and Signature Bank (SBNY), to financial technology company PayPal (PYPL), to energy companies Exelon Corporation (EXC), NRG Energy (NRG) and Vistra Energy (VST).

The list also included Fox Corporation (FOXA), Walt Disney Company(DIS), and Warner Music Group(WMG), among others.

The report wrote that the digital asset universe is too large to ignore, and said decentralized finance apps and non-fungible tokens represent "the most innovation." Regulatory uncertainty is the largest near-term risk, according to the report.

"In the near future, you may use blockchain technology to unlock your phone; buy a stock, house or fraction of a Ferrari; receive a dividend; borrow, loan or save money; or even pay for gas or pizza," the report wrote.

In the first half of 2021, venture capital investments in digital assets and blockchain amounted to $17 billion, up from $5.5 billion for the whole year of 2020, the report noted.

What else is going on about crypto?

-Frances Yue


(END) Dow Jones Newswires

10-06-21 0850ET

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