Consideration institutional traders: Whether or not you’re a bonafide and laser-eyed true believer or a skeptical holdout, the dangers from cryptocurrencies might be steadily “creeping” into your portfolio, in line with MSCI Inc.
A minimum of 52 corporations representing $7.1 trillion in market capitalization have some publicity to cryptocurrencies, in line with an analysis by MSCI. They vary from all-in gamers like Coinbase Inc. to Bitcoin balance-sheet “hodlers” like Tesla Inc. and MicroStrategy Inc. to these dipping a toe into crypto-market providers resembling JPMorgan Chase & Co.
The rising significance of the unstable digital asset class brings with it an assortment of challenges for traders and firms alike as they attempt to assess the environmental, social and governance dangers that come together with it, the report says. These embody questions on all the things from greenhouse fuel emissions stemming from mining cash, to a scarcity of accounting requirements for crypto and questions on transparency surrounding how the networks are run, in line with MSCI.