May has been tough for cryptocurrencies and Saxo Bank’s crypto basket has also suffered, but much less than cryptocurrencies themselves, making it the worst performing theme in May. Saxo is adding five new companies to its crypto and blockchain theme basket including the Swedish-based crypto broker Safello Group that has just IPO’ed in Stockholm.
The divergence in performance between Bitcoin prices and the crypto theme basket shows that the companies in the basket are not purely driven by cryptocurrency prices, Peter Garnry, Head of Equity Strategy at Saxo, explains. This means that Saxo’s theme basket provides a different exposure profile to the crypto industry than just speculating on cryptocurrencies.
Safello Group, which is Swedish-based crypto broker, recently IPO’ed in Stockholm, and Saxo is using this IPO as an opportunity to add some new companies to the crypto theme basket. In this update, Saxo is adding five companies: Safello Group, Northern Data, Quickbit, Taal Distributed, and Digihost.
This way, the basket has been expanded to 23 companies representing $97.7bn in combined market value. The median price target is 56% above the current price suggesting that analysts remain very bullish on this industry despite the recent volatility.
Saxo comments:
“We do not have a firm view on this industry except that outright speculation is for now the main activity in cryptocurrencies and that the industry still need to prove that it can be other than pure speculation”.
Let’s recall that Saxo launched a theme basket focusing on crypto and blockchain companies in April 2021. This basket provides inspiration and alternatives for investors that want exposure to cryptocurrencies but do not want to own ETNs or physical cryptocurrencies.
