5 Best Bitcoin Stocks to Invest in According to Hedge Funds

1. Visa Inc. (NYSE:V)

Number of Hedge Fund Holders: 177

Visa Inc. (NYSE:V) is the biggest financial technology services company in the world and offers its digital payment services in more than 200 countries. Many companies’ niche Bitcoin cards are rolled out in partnership with the company.

In Q4, a total of 177 hedge funds had stakes in Visa Inc. (NYSE:V), up from 165 funds in the prior quarter. The total worth of the stakes was $26.46 billion. In the same quarter, London-based TCI Fund Management was the most significant stakeholder with 19.9 million shares, making up 13.83% of the fund’s portfolio.

On March 30, Visa Inc. (NYSE:V) announced that it is extending its partnership with Fold, a Bitcoin rewards app to introduce Bitcoin rewards in new areas. The partnership originally started in 2020 and since then it has yielded $30 million in Bitcoin as rewards. 

Polen Capital mentioned Visa Inc. (NYSE:V) in its first-quarter 2023 investor letter. Here is what it said:

“We trimmed Mastercard and Visa Inc. (NYSE:V) to equal weights of the Portfolio. Mastercard and Visa operate as a duopoly in a large and growing market. Over the last 50 years, global personal consumer expenditures (PCE) has grown 7-9% annualized. We expect 4-5% long-term PCE growth going forward. Additionally, the shift from cash to credit continues unabated, with a total credit penetration of only approximately 50% globally.3 This shift provides Visa and Mastercard with another ~4-6% of growth. When combined with PCE, this gives both companies high-single-digit to low-double[1]digit revenue growth opportunities. This growth estimate is before accounting for growth amplifiers like the acceleration of e[1]commerce, the shift from offline to online, and additional services. Both companies enjoy extremely strong network effects that provide strong competitive advantages.

We have trimmed Visa and Mastercard because their combined weight grew to over 12% of the Global Growth Portfolio because of their recent performance and to fund our increase in Amazon’s position size. We added to both positions when their prices were depressed due to cross-border transactions deteriorating materially from the pandemic. Cross-border volumes came roaring back when travel corridors reopened, and although we are several quarters removed from the cross-border nadir, Visa still grew volumes >30% in 1Q23. Total cross-border volumes are now 132% of 2019 levels. At 4.5% each, both companies remain high conviction positions for Global Growth.”

You can also look at the Analysts Are Increasing Price Targets of These 10 Stocks and 13 Best New Stocks To Invest In.

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