$7 Trillion Worth of Stocks Are Exposed to Crypto Risks
- Exposure ‘creeping’ into institutional investor portfolios
- Blockchain, crypto expertise appears in short supply on boards
Cryto Risk Creeps Into $7.1 Trillion Worth of Stocks: MSCI
Attention institutional investors: Whether you’re a bonafide and laser-eyed true believer or a skeptical holdout, the risks from cryptocurrencies could be steadily “creeping” into your portfolio, according to MSCI Inc.
At least 52 companies representing $7.1 trillion in market capitalization have some exposure to cryptocurrencies, according to an analysis by MSCI. They range from all-in players like Coinbase Inc. to Bitcoin balance-sheet “hodlers” like Tesla Inc. and MicroStrategy Inc. to those dipping a toe into crypto-market services such as JPMorgan Chase & Co.
The growing importance of the volatile digital asset class brings with it an assortment of challenges for investors and companies alike as they try to assess the environmental, social and governance risks that come along with it, the report says. These include questions about everything from greenhouse gas emissions stemming from mining coins, to a lack of accounting standards for crypto and questions about transparency surrounding how the networks are run, according to MSCI.