Yahoo Finance Cryptocurrency Proxy Stocks Gain on Bitcoin Rebound
Despite nearly market-wide volatility to open the week, shares of several notable cryptocurrency proxy stocks—including Longfin Corp. LFIN, Riot Blockchain RIOT, and the Bitcoin Investment Trust GBTC—were in the green on Monday morning amid a solid rebound from bellwether cryptos such as Bitcoin.
According to CoinMarketCap.com, each of the top 10 largest cryptocurrencies in terms of total market capitalization have surged significantly over the past 24 hours, including 15% gains from Bitcoin, Ethereum, and Litecoin.
The rebound in the cryptocurrency space comes after a tough stretch for digital coins and tokens, with the total capitalization of the global crypto market shedding as much as 30% last week. Interestingly, Monday’s gains appear to be at least partially inspired by comments made by some of the world’s top financial regulators.
On the eve of a meeting involving finance ministers and central bankers from G20 nations, the Financial Stability Board issued a letter to the group suggesting that cryptocurrencies do not pose a near-term threat to the existing financial system.
“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time,” wrote FSB chairman and Bank of England governor Mark Carney. “This is in part because they are small relative to the financial system. Even at their recent peak, their combined global market value was less than 1% of global GDP.”
The FSB’s letter was a relief for cryptocurrency traders, who have been dealing with increased regulatory and advertising concerns in several major countries for the better part of 2018. The recent news that Twitter TWTR plans to follow Facebook FB and Alphabet’s GOOGL Google in banning cryptocurrency advertisements pushed digital assets lower last week.
Monday’s rebound also breathed life into cryptocurrency and blockchain-related stocks that have become popular proxies for regulator investors and traders interested in better on Bitcoin. Shares of stocks like LFIN, RIOT, and GBTC were up in early morning trading Monday, despite steep losses throughout broad indexes.
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