Coinbase

As the largest cryptocurrency exchange in the U.S., Coinbase is in prime position to benefit from a rise in Ethereum trading, earning a transaction fee on every sale or purchase.

Many cryptocurrencies sold on the exchange are powered by the Ethereum blockchain, which means a bet on Coinbase is essentially a bet on Ethereum itself. Their futures are tightly linked.

One thing you want to see in any stock is a capacity for growth, and Coinbase has that in spades. In the second quarter of 2020, Coinbase had 1.5 million monthly users; a year later, that figure hit 8.8 million. Over that same span, net revenue grew from $178 million to $2.03 billion.

Coinbase’s stock, currently trading for around $314, is down about 4% since the company went public in April.

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Robinhood Markets

Looking at Robinhood’s stock performance since its IPO launched in July — it’s down more than 20% — you may wonder if the meme stock juice that the company was running on is fizzling.

It’s a fair question, but Robinhood is not just a commission-free stock trading platform. The discount broker has facilitated Bitcoin and Ethereum trading since way back in 2018, and it now allows users to buy and sell Litecoin and Bitcoin Cash.

Robinhood’s crypto offerings have been paying off for the company too. Crypto-generated revenue in Q2 2021 was $233 million, more than 40 times what it was a year before.

HIVE Blockchain

A cryptocurrency miner, HIVE Blockchain is one of the many companies that turn colossal amounts of computing power into crypto tokens. HIVE mines Bitcoin, Ethereum and Ethereum Classic.

The amount of energy required to mine cryptocurrency is creating environmental concerns among prominent investors, including Tesla CEO Elon Musk, and HIVE is focused on using green energy for its mining.

HIVE has plans to pivot and focus on other cryptocurrencies once Ethereum 2.0 is rolled out, but its business is still heavily reliant on Ethereum and should provide decent exposure to Bitcoin’s little brother in the near to mid-term.

HIVE investors have had a great 2021. The company’s stock has more than doubled in price since the beginning of the year.

If any of these ideas interest you, know that you don’t have to start big. These days, you can build your own crypto-related portfolio with as much money as you are willing to spend.

Fine art as an investment

Stocks can be volatile, cryptos make big swings to either side, and even gold is not immune to the market’s ups and downs.

That’s why if you are looking for the ultimate hedge, it could be worthwhile to check out a real, but overlooked asset: fine art.

Contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.

And it’s becoming a popular way to diversify because it’s a real physical asset with little correlation to the stock market.

On a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.

Earlier this year, Bank of America investment chief Michael Harnett singled out artwork as a sharp way to outperform over the next decade — due largely to the asset’s track record as an inflation hedge.

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About the Author

Clayton Jarvis

Clayton Jarvis

Reporter

Clayton Jarvis is a mortgage reporter at MoneyWise. Prior to joining the MoneyWise team, Clay wrote for and edited a variety of real estate publications, including Canadian Real Estate Wealth, Real Estate Professional, Mortgage Broker News, Canadian Mortgage Professional, and Mortgage Professional America.

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