Is there a correlation between bitcoin and blockchain-related stocks?

Quick Take

  • Historically, the correlation between returns on blockchain-related stocks and bitcoin has been mostly insignificant
  • These stocks experienced slightly elevated correlation coefficients during 2018, but have since fallen off
  • Overstock had the highest correlation to bitcoin in conjunction with its STO offering that took place between late 2017 and 2018
  • Xunlei Limited was the only company that experienced a noteworthy correlation increase in 2019

Based on analysis by The Block, the correlation between the returns on blockchain-related stocks and bitcoin has been largely insignificant. A few stocks have shown small levels of correlation for brief periods of time, but in general, these companies appear to have little relationship to the returns of bitcoin prices.

For this analysis, we took the stocks listed in Amplify’s Blok ETF, an actively managed ETF containing companies that utilize and develop blockchain technologies to varying degrees.