An indirect path to digital asset exposure for traditional investors
Cryptocurrency has evolved from a fringe technological experiment into a multi-trillion-dollar ecosystem influencing finance, technology, and global markets. Bitcoin and other digital tokens regularly dominate headlines—sometimes for breathtaking rallies, sometimes for dramatic collapses. For many investors, that volatility alone is enough to inspire caution.
But what if you’re intrigued by the long-term potential of blockchain technology and digital assets—yet uncomfortable with holding cryptocurrency directly?
You are not alone. A growing number of investors want exposure to the crypto economy without owning Bitcoin, Ether, or other tokens. Fortunately, the stock market offers multiple pathways to participate in the so-called crypto revolution while remaining within the familiar framework of publicly traded equities and funds.
Cryptocurrency stocks—broadly defined—include shares of companies and funds that derive significant revenue, growth potential, or strategic value from cryptocurrencies or blockchain technology. These investments range from crypto exchanges and mining companies to diversified technology giants and regulated investment funds.
That said, a critical caveat remains: crypto-linked investments are often volatile. The closer a company’s fortunes are tied to cryptocurrency prices, the more dramatic its stock movements may be. Investors must weigh opportunity against risk with clear eyes.
Below are the four primary ways to invest in cryptocurrency stocks, along with key examples and important considerations for each approach.
1. Buy Stock in Companies Directly Involved in Cryptocurrency
One of the most straightforward ways to gain crypto exposure—without owning any crypto—is to invest in publicly traded companies whose core business models revolve around cryptocurrency.
These firms tend to have the strongest correlation with crypto prices, meaning their stocks may rise and fall dramatically alongside the broader crypto market.
Cryptocurrency Exchanges
Crypto exchanges act as marketplaces where users buy, sell, and trade digital assets. Their revenues often come from transaction fees, custody services, and institutional trading products.
Coinbase (COIN) is the most prominent example. As one of the largest crypto exchanges in the world, Coinbase benefits from increased trading activity during crypto bull markets. However, when prices fall and trading volumes decline, revenue can shrink quickly—making the stock highly sensitive to market cycles.
Traditional financial players are also participating. CME Group (CME), one of the world’s largest derivatives exchanges, offers Bitcoin and Ethereum futures and options. While crypto products represent only a small portion of CME’s overall business, they provide indirect exposure with significantly less volatility than pure-play crypto firms.
Cryptocurrency Mining Companies
Crypto mining companies generate revenue by validating transactions and securing blockchain networks, particularly Bitcoin. These firms invest heavily in specialized hardware and energy infrastructure.
Well-known publicly traded mining companies include:
- Riot Platforms (RIOT)
- Marathon Digital Holdings (MARA)
- Hut 8 Mining (HUT)
Mining stocks often act as leveraged bets on cryptocurrency prices. When Bitcoin rises, miners’ revenues and valuations can surge. When prices fall—or energy costs rise—profits can evaporate quickly.
Mining Hardware Manufacturers
Cryptocurrency mining depends on increasingly powerful hardware. Companies that design and manufacture this equipment can benefit from crypto demand even if they are not directly mining themselves.
Two major players stand out:
- NVIDIA (NVDA)
- Advanced Micro Devices (AMD)
Both companies produce high-performance graphics processing units (GPUs) used in crypto mining, artificial intelligence, gaming, and data centers. While crypto is only one piece of their business, strong demand from miners can significantly influence sales during bull markets.
2. Buy Stock in Companies That Hold Large Amounts of Cryptocurrency
Another indirect approach is investing in public companies that hold significant cryptocurrency assets on their balance sheets. In this case, investors gain exposure not through operations, but through corporate treasury strategies.
These stocks often track cryptocurrency prices more closely than companies with no digital asset holdings.
Notable Examples
MicroStrategy (MSTR)
Perhaps the most famous example, MicroStrategy has positioned Bitcoin as a core corporate strategy. The company holds well over 100,000 Bitcoins, making it one of the largest corporate holders in the world. As a result, MicroStrategy’s stock often behaves more like a Bitcoin proxy than a traditional enterprise software company.
Block (SQ)
Formerly known as Square, Block operates payment platforms such as Square and Cash App. The company allows users to buy and sell Bitcoin and holds cryptocurrency on its balance sheet. While crypto is not Block’s sole focus, its financial performance is meaningfully tied to digital asset adoption.
Tesla (TSLA)
Tesla made headlines by adding Bitcoin to its balance sheet, later recording impairment losses during market downturns. While Tesla’s core business remains electric vehicles and energy, its cryptocurrency exposure demonstrates how digital assets can impact even non-financial companies.
MassMutual (MCI)
The insurance giant took a notable step into crypto by purchasing Bitcoin and investing in blockchain companies. Though less volatile than tech firms, MassMutual’s involvement reflects growing institutional acceptance.
Key Considerations
Balance-sheet crypto exposure can amplify risk. While gains may enhance shareholder value during bull markets, downturns can force impairment losses and increase earnings volatility.
3. Invest in Companies Using Blockchain Technology to Innovate
Not all crypto-related investments revolve around digital currencies. Blockchain technology has applications far beyond cryptocurrency, including supply chain management, finance, gaming, and data security.
Investing in companies that leverage blockchain for innovation offers a more diversified and often lower-risk way to participate in the digital transformation.
Technology Sector
IBM (IBM)
IBM has emerged as a leader in enterprise blockchain solutions, offering tools for supply chain tracking, identity verification, and secure data sharing. Unlike crypto-focused firms, IBM’s blockchain initiatives complement a diversified business model.
NVIDIA (NVDA)
Beyond mining hardware, NVIDIA has developed blockchain-based platforms for gaming and digital asset creation, blending blockchain with artificial intelligence and virtual worlds.
E-Commerce and Supply Chains
Amazon (AMZN)
Through Amazon Web Services (AWS), Amazon offers blockchain tools that help businesses build decentralized applications, manage smart contracts, and improve supply chain transparency.
Alibaba (BABA)
Alibaba provides blockchain-as-a-service infrastructure to support product authentication, digital ownership, and logistics efficiency—particularly within global supply chains.
Banking and Financial Services
JPMorgan Chase (JPM)
One of the earliest major banks to embrace blockchain, JPMorgan has used the technology for cross-border payments and settlement systems. Its blockchain platform demonstrates how traditional finance is integrating decentralized concepts without abandoning regulatory oversight.
Why This Approach Appeals to Conservative Investors
Companies using blockchain technology often benefit from digital innovation without being entirely dependent on crypto prices. For investors seeking long-term exposure with reduced volatility, this approach can be particularly attractive.
4. Buy Shares in Publicly Traded Cryptocurrency Funds
For investors who prefer diversification and professional management, cryptocurrency-focused funds offer another path to indirect exposure.
These include exchange-traded funds (ETFs) and mutual funds, many of which are offered by well-established financial institutions.
Cryptocurrency ETFs
ETFs trade like stocks and typically track a specific asset or theme.
- Some crypto ETFs hold Bitcoin or Ether directly
- Others invest in crypto-related companies, reducing single-stock risk
Examples include:
- Fidelity Advantage Bitcoin ETF (FBTC)
- Invesco Galaxy Bitcoin ETF (BTCO)
- Schwab Crypto Thematic ETF (STCE)
Crypto ETFs provide liquidity, transparency, and easier tax reporting compared to holding crypto directly.
Cryptocurrency Mutual Funds
Mutual funds are actively managed and may invest in:
- Bitcoin futures contracts
- Crypto mining stocks
- Blockchain technology companies
An example is Fidelity’s Bitcoin Strategy ProFund (BTCFX), which invests in Bitcoin futures rather than physical Bitcoin.
Benefits and Risks
Funds offer diversification and professional oversight but may involve higher fees. Futures-based products can also behave differently than spot crypto prices due to contract roll costs and market structure.
The Bottom Line: Crypto Exposure Without Crypto Ownership
You do not need to buy Bitcoin—or any cryptocurrency—to gain exposure to the digital asset ecosystem. From crypto exchanges and mining companies to blockchain innovators and diversified investment funds, traditional markets offer multiple entry points.
However, investors should approach crypto-linked stocks with caution. Volatility remains a defining feature of the sector, and even indirect exposure can result in sharp price swings.
Before investing, consider:
- Your risk tolerance
- Your investment time horizon
- How much volatility you can realistically endure
As with any investment, due diligence is essential. Cryptocurrency stocks and funds can play a role in a diversified portfolio—but they should rarely dominate it.
The companies and funds mentioned in this article are for educational purposes only and do not constitute financial advice or endorsements.