Even Skeptics May Need to Consider Crypto Exposure: WSJ's Heard on the Street

Cryptocurrency's viability as an investment may not be in its value as an asset but in the way the financial world is evolving because of it.

AccessTimeIconFeb 19, 2021 at 2:08 p.m. UTC
Updated Sep 14, 2021 at 12:14 p.m. UTC

Cryptocurrency may still be too speculative or volatile for many but it presents opportunities other than direct investment, according to The Wall Street Journal's "Heard on the Street" column.

Cryptocurrency's viability as an investment may not be in its value as an asset but in the way the financial world is evolving because of it, the influential column argues.

The 40% rise in PayPal's share price since it introduced its crypto service is an example of how crypto can "move the needle" in the financial system and how investors can profit without actually gaining direct exposure, the column's author, Telos Demos, argues.

Rather than buying cryptocurrency itself, investors may instead look to firms who facilitate the buying and selling of crypto. Coinbase's $77 billion valuation ahead of its public may appear particularly enticing.

The column points to another example in the surging shares of Silvergate Capital, the price of which has risen more than 100% in 2021. Silvergate, which serves crypto firms as a core part of its business, enjoyed a huge increase in customer deposits in the second half of 2020, though analysts have questioned the extent to which this is sustainable in the longer term.

However, even if the revenue from buying and selling crypto itself stays small, analysts are bullish about the long-term prospects of companies that can attract younger users and harness that loyalty with products and services across all areas of finance including banking and lending.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.