Blockchain-exposed stocks have on average underperformed the S&P 500 by 8% year-to-date, falling 13% versus a 5% decline for the index, Goldman Sachs said in a note on Wednesday.
- Despite the underperformance, median blockchain-exposed stocks are expected to grow sales at 16% annually through to 2024, compared with a 9% sales growth for median U.S. stocks, strategists led by David Kostin wrote.
- An equal-weight portfolio of these stocks returned 3% during the 19% rally in bitcoin since the end of January, versus a flat return for the S&P 500, the report said, and these stocks exhibited a 67% correlation with bitcoin in the last six months, it added.
- The bank notes that while these stocks are correlated with bitcoin, the cryptocurrency itself has become more correlated with equity index returns in recent months.
- Goldman screened 26 U.S. stocks with blockchain and cryptocurrency exposure, and with market caps greater than $1 billion.
Read more: Goldman: Bitcoin, Altcoins to Become More Correlated With Traditional Financial Market Variables