Follow @crypto Twitter for the latest news.
While the likes of PayPal Holdings Inc. and COINBASE Global Inc. make the cut in a basket of stocks compiled by Bank of America Corp.’s new digital-asset research team, there are some less obvious inclusions as well.
The 20 or so names consist of equities rated Buy or Neutral by BofA and exposed to the digital-asset theme. They include Black Hills Corp., a “utility with the most advanced digital asset regulatory strategy that could potentially be earnings accretive,” as well as Archer-Daniels-Midland Co. and Bunge Ltd., which are using blockchain technology for transactions related to global agricultural trade, according to a research note.
The growth of digital assets is still in the early stages, strategists including Alkesh Shah, Andrew Moss and Jessica Reif Ehrlich said in the note, which flagged regulatory issues as the biggest near-term risk. Still, BofA sees room for a fresh generation of companies concerned with digital-asset trading, offerings and new applications across industries -- including finance, supply chain, gaming and social media.
The firm is seeing growing institutional and retail demand for digital-asset content, BofA research head Candace Browning said on Bloomberg Television. It launched the coverage Monday, according to a press release, after announcing the creation of the team, headed by Shah, earlier this year.
