BlackRock dives deeper into crypto yield as Bitcoin bleeds — long the stablecoin play
Investors are pulling billions out of Bitcoin, but Wall Street giant BlackRock is simultaneously pushing deeper into crypto yield products and stablecoins. Despite a new competitor launching, top analysts see massive upside for Circle.
Idea
While speculative crypto assets see massive outflows with BlackRock's Bitcoin ETF shedding hundreds of millions, the world's largest asset manager is expanding its footprint into DeFi through Ethena, indicating a preference for regulated crypto yield products over spot crypto. This Wall Street pivot toward stablecoins and payment infrastructure validates the business model of Circle. Even with the launch of a new stablecoin competitor driving a temporary 17% dip in Circle's stock, Bernstein views this as a major buying opportunity with a $190 price target.
Advanced analysis
Can Circle's stock stage the kind of outperforming up-day this setup is built to catch while Bitcoin stays weak?
Can Circle's surging revenue and declining leverage offset the margin compression eating into its bottom line?