Bank of America Identifies Major Banks, PayPal, Walt Disney & More as Companies that May See Value Expansion Due to Digital Asset Exposure

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Bank of America (BofA) identifies JP Morgan, Morgan Stanley, PayPal, Walt Disney, and more, as 'digital assets exposed companies' as they may see market value expansion due to digital assets exposure.

Over the past 24 hours, Bitcoin has surged more than 5% to $55,083 (at the time of writing) after SEC chairman Gary Gensler said on Tuesday that the U.S. won’t ban cryptocurrencies like China did. In statements ready by the Financial Times for the “North American Conference on Wealth Management of the Future,” Gensler celebrated various open-ended mutual funds invested in Bitcoin futures traded on the Chicago Mercantile Exchange, Lord Web reports.

Gensler cited a 1940 law that offered “significant investor protection” for mutual funds and ETFs. In August, the head of the SEC first shared his support for a Bitcoin futures ETF backed by 1940 legislation when he said he would facilitate the launch of Bitcoin funds, coming into the market underneath inescapable situations. The SEC is currently reviewing more than a dozen ETF functions for Bitcoin and Bitcoin futures merchandise, but none of them has been authorized yet.

“I look forward to staff reviewing such applications,” Gensler stated in ready statements.

BofA has identified 20 U.S.-listed companies it rated “Buy” and “Neutral” that have exposure to digital assets. These are the companies that “may see market value expansion due to digital asset exposure,” it said in a report led by Alkesh Shah, head of the bank's global cryptocurrency and digital asset strategy on Monday.

The digital assets-exposed companies range from crypto exchange Coinbase Global, to banks JP Morgan Chase, Morgan Stanley, and Signature Bank, to financial technology company PayPal, to energy companies Exelon Corporation, NRG Energy, and Vistra Energy, and also include Fox Corporation, Walt Disney Company, Warner Music Group, and others.

The report wrote that the digital asset universe is too large to ignore, and said decentralized finance apps and non-fungible tokens represent “the most innovation.” Regulatory uncertainty is the largest near-term risk, according to the report, according to MarketWatch.

“In the near future, you may use blockchain technology to unlock your phone; buy a stock, house or fraction of a Ferrari; receive a dividend; borrow, loan or save money; or even pay for gas or pizza,” the report wrote.

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