A deluge of advertising by crypto companies during the Super Bowl has shined a spotlight on the investment potential, not just of currencies such as bitcoin or ether, but of companies that are building crypto-related businesses.
For advisors, suggesting clients buy shares of companies that are building the crypto ecosystem, many of which are now quite a bit cheaper than they were two months ago, could be a good way to allow clients to play in the crypto space without sending them off to trade coins themselves on crypto exchanges. One such exchange, BlockFi, was fined $100m by the Securities and Exchange Commission over problems with its interest-bearing crypto lending product. BlockFi is a good example of the uncertainty and risk that still hangs around this space.