Dozens of ‘ESG Companies’ Have ‘Creeping Exposure’ to Crypto

Adoption Bitcoin Cryptocurrency Ecology Investing Stocks
Last updated:
Author
Author
Fredrik Vold
About Author

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Source: Adobe/Dennis

At least 52 companies that fall under the ESG (environmental, social and governance) umbrella of the major stock index provider MSCI have “creeping exposure to cryptocurrency,” an analysis by the firm has found.

Combined, the 52 companies make up about USD 7.1trn in market capitalization, or about 6.6% of the total market capitalization covered by MSCI ESG Research, with many of them gaining exposure “passively and unintentionally,” the analysts said.

Source: MSCI ESG Research

They went on to say that some institutions may have more exposure to crypto risk “than they realize.” 

“Equity investors – even those with significant reservations about the highly volatile asset class – may be faced with ‘creeping’ cryptocurrency exposure. This can occur when newly listed cryptocurrency companies get added to the indexes that guide their investments, or when companies in which they are already invested, directly or through indexes, announce strategies that include bitcoin or other cryptocurrencies,” the researchers wrote.

Further, they also warned both investors and company executives about the risks associated with crypto in an ESG perspective. Environmental risks from cryptocurrencies include greenhouse-gas emissions from energy usage and electronic waste, the researchers said, while suggesting that “identifying where mining occurs” for different cryptocurrencies can help alleviate this type of risk.

In terms of social risks, the MSCI researchers said that crypto’s “impact remain uncertain,” although it mentioned “transaction disputes” as a possible risk for companies that accept crypto as payment.

Lastly, the firm said governance risks could arise from issues related to cybersecurity and anti-money laundering (AML) practises, while noting that the way coins themselves are governed could also play a role for companies. 

Among the non-crypto companies that have famously gained exposure to cryptocurrencies – although to a varying degree – are electric car maker Tesla and the software company MicroStrategy, both publicly listed companies in the US.

____

Learn more:
Surprise! An ESG-Conscious Giant Increases Indirect Exposure to Bitcoin
People ‘Should Have Exposure’ to Bitcoin – Manager of Billions

JPMorgan to Offer ‘Crypto Exposure Basket’, but Criticized as Not ‘Crypto’
Norwegian Giant Aker Goes Bitcoin, Defends BTC Mining, Eyes Micropayments

A Closer Look at the Environmental Impact of Bitcoin Mining
Traditional Investors Sending an ESG Sign Important to Bitcoin Miners Too

More Articles

Price Analysis
Bitcoin Price Drops Below $96,000; Will BTC Bounce or Break Lower?
Arslan Butt
Arslan Butt
2025-02-19 08:35:32
Blockchain News
Crypto Market Maker Wintermute Eyes New York for US Expansion: Report
Shalini Nagarajan
Shalini Nagarajan
2025-02-19 05:50:38
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors