3 Fintech Stocks & ETFs To Shine As Bitcoin Crosses $35,000

Going on, American Express AXP invested in crypto trading platform FalconX. Notably, FalconX allows institutional clients with access to cryptocurrency markets through a single platform for trading, credit and clearing.

Sluggishness in US Dollar

The coronavirus pandemic has caused weakness in the world’s largest reserve currency, U.S. dollar, and other major currencies. This weakness has resulted in a quest for alternative currencies among investors for protection against inflation, per The Guardian article. Considering the current situation, when the U.S. economy is expected to recover on pillars like the Fed’s support, another round of fiscal stimulus and coronavirus vaccine rollout, the dollar is expected to remain weak and cryptocurrencies are likely to take the spotlight.

Are Bitcoins Taking Over as ‘Digital Gold’?

According to The Guardian report, bitcoin is generally seen as an alternative to the traditional safe-haven investment — gold. Some analysts also expect to see tough competition between both assets in 2021. Commenting on it, Paolo Ardoino, the chief technology officer of the crypto exchange Bitfinex, has said that “while a growing institutional presence has been part of the narrative of the current bull run, we may see increased retail interest in bitcoin as a form of digital gold,” per The Guardian article.

Fintech ETFs & Stocks to Shine Bright

Although the cryptocurrency market is highly volatile, it seems that the prices are likely to remain high. In this regard, Scott Minerd of Guggenheim Investments has said that “our fundamental work shows that Bitcoin should be worth about $400,000. It’s based on the scarcity and relative valuation such as things like gold as a percentage of GDP. So you know, Bitcoin actually has a lot of the attributes of gold and at the same time has an unusual value in terms of transactions,” per a Bloomberg article.

The growing participation of traditional investment banks and fintech firms with an aim to add cryptocurrency to their products is creating investment opportunities. Thus, we are highlighting three fintech ETFs & stocks that are likely to gain from the impressive bitcoin resurgence:

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