LOS ANGELES, CA / ACCESSWIRE / November 27, 2017 / If there was a visual for the investor stampede into the cryptocurrency/blockchain space, it would make the compilation of the worst Black Friday melees look tame in comparison. In addition to sending Bitcoin (XBT), Ethereum (ETH), and other cryptocurrencies, way past trading levels that, only months ago, would have been hard to imagine, it's revolutionizing the business models of a few uniquely positioned listings, including Social Reality (NASDAQ: SRAX), Riot Blockchain (NASDAQ: RIOT), Bitcoin Investment Trust (GBTC) and Xunlei (XNET).
It's not just the retail side, as J.P. Morgan Chase & Co. (JPM) and Tobam were among the players that disclosed that the institutional turkeys have determined that they, too, need some type of cryptocurrency/blockchain related market exposure.
To date, the most unique business model modifications are being made by Social Reality, which unveiled its BIGtoken cryptocurrency that it hopes to ICO and it plans on paying out to its shareholders in the form of a dividend. Unlike the other companies mentioned in this article, Social Reality's business model is blended, with BIGtoken enhancing its already high profit margin offerings, yet, by turning the data transaction process on its head and helping individuals take control of ownership of their data, incorporation of the cryptocurrency is a major differentiator for itsadtech products.
Perhaps the most interesting aspect of Social Reality's recent moves is that it may go a long way in answering what a cryptocurrency short squeeze might look like, as Social Reality was already in the short squeeze process, prior to the BIGtoken announcement, but the potential ICO appears to be hastening the squeeze.
While Social Reality pivoted into the cryptocurrency space, it's not planning on moving away from its core competencies. In fact, its SRAX MD division is growing so rapidly that Social Reality is considering spinning that division out as a separate NASDAQ entity, which would likely result in another shareholder dividend payout.
Another dividend play was announced last week, as Bitcoin Investment Trust's sponsor, Grayscale Investments, declared a distribution and established a record date for the distribution of a portion of the rights to Bitcoin Gold tokens, which are currently held by the Trust as a result of the fork in the Bitcoin blockchain on October 24, 2017 to shareholders of record as of the close of business on December 4, 2017.
After spending years as a biotech, Riot Blockchain transitioned its model into the space, as a blockchain specialist, and this low-float stock's market has responded nicely to the moves that the Company is making, including the addition of Frank Bishop, the former Invesco CEO, to its advisory board.
Another successful pivot into the space is Xunlei, which reorganized their software play into a hardware play that permits its users to participate in the cryptocurrency arena.
With the Wall Street Journal reporting that "J.P. Morgan is considering whether to provide its clients access to CME's new bitcoin product through its futures-brokerage unit," it's a sure sign that the institutional money is ready to poor into this space, even though the CME bitcoin futures fund is not quite operational, as it's pending regulatory review.
Additionally, according to the Financial Times, Tobam, a French asset management firm with $9 billion in assets under management and offices in Paris, Dublin, New York, and Hong Kong, is planning to launch Europe's first Bitcoin mutual fund. Tobam's fund will allow institutional investors to gain exposure to bitcoin, as interest in the cryptocurrency continues to grow. Yves Choueifaty, Tobam's president, stated that he expects that that fund will grow to as much as $400 million over the next several years.
No doubt, I'm looking forward to what this week has to offer here.
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