When it comes to asset management companies, Bitcoin is not going to be the only asset class to suffer.
A recent report from investment firm Fidelity Investments lists nearly 100 “undervalued” companies.
Fidelity says it is not recommending anyone invest in these companies because it does not expect any to be viable in the future.
But it did note that many of the companies it lists are highly leveraged and could be subject to a sudden downturn.
It also notes that many “undervaluation” stocks are being held in the name of some sort of retirement savings product, such as 401k plans.
FBS, the investment bank, did not directly address the specific risks Fidelity listed, but it did say that the firm did not believe it was appropriate to list a company that was “underinvested or overvalued.”
It is a trend that investors should be aware of.
In the last three years, the Bitcoin industry has grown to over $300 billion.
Fidelity is calling for the following companies to be reviewed: 1.
BitGo (BitGo is an asset management company based in Silicon Valley that has been described as a Bitcoin “front” for many years)2.
Blockstack (a company that owns and manages Blockstack)3.
BlockCypher (an online marketplace that offers digital assets like bitcoin)4.
BitInstant (a bitcoin exchange and wallet service)5.
BitMEX (a Bitcoin exchange and Bitcoin wallet service based in Singapore)6.
BitFlyer (a digital currency exchange and digital asset wallet service in the Philippines)7.
Bitfury (a cryptocurrency exchange and cryptocurrency wallet service with an operations in the United Kingdom)8.
BitmEX (an exchange and currency wallet service that also operates out of Singapore)9.
BitVault (an investment platform that offers an alternative to traditional ETFs, called “BitVault”)10.
BitShares (an alternative to Bitcoin, with its own trading platform)