Digital Assets: Stimulus Checks Could End Up Chasing Bitcoin And Stocks (Mizuho)

https://dailyalts.com/wp-content/uploads/2021/03/512px-Helicopter_money.png

A survey by Mizuho Securities found nearly $40 billion of stimulus money could be used to buy bitcoin and stocks.

Nearly 10% of the direct stimulus amount of $380 billion could potentially end up being used not for groceries and healthcare but instead in bets on volatile assets such as bitcoin and stocks said a report in Yahoo Finance that cited a survey by Mizuho Securities.

Eligible Americans are likely to receive checks for $1,400 from the $1.9 trillion COVID-19 relief package recently signed into law by President Joe Biden.

A survey by Mizuho Securities covered 235 individuals earning less than $150,000. Key findings include:

  • About 200 individuals are hoping to get their third stimulus installment in the coming days
  • Nearly 40% of these are looking to invest at least a part of the money.
  • “The survey predicts that bitcoin will account for 60% of total incremental investment spend. We calculate it could add as much as 2-3% to bitcoin’s current $1.1t trillion market value,” said Mizuho managing director Dan Dolev.
  • Popular stocks on people’s shopping lists include Visa (NYSE: V), MasterCard (NYSE: MA), PayPal (NASDAQ: PYPL), and Square (NYSE: SQ).

Deutsche Bank survey

The Mizuho survey results echo those from a Deutsche Bank survey of stock traders reported last week by CNBC.

Deutsche surveyed 430 investors that conducted online trading. It found that

  • half of the respondents between 25 and 34 years old planned to spend 50% of their stimulus payments on stocks.
  • 18- to 24-year-old retail investors planned to use 40% of their stimulus checks on stocks.
  • Retail investors in the age group of 35- to 54-years planned to use 37% of their checks on stock market investments.

The survey, therefore, estimated that about $150 billion out of the stimulus amount of $405 billion could head for stocks. Assuming only 20% of check recipients have trading accounts, “that would still provide around circa $30 billion of firepower” aimed at stocks.

Related Story: Private Banks In Germany And Switzerland Commence Crypto Services To Meet High Demand

Feature Image: Wikimedia Commons                                                   

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/07/home-page-section-app.jpg
FinTech: UK-Based BNPL Player Zilch Closes Series B With Additional $110M
July 23, 2021     FinTech, News

The $110 million comprised both debt and equity capital. Zilch, the UK-based BNPL platform has raised an additional $110 million from Goldman Sachs and DMG Ventures. The funding is part…

https://dailyalts.com/wp-content/uploads/2021/07/dollar-2387088_640.jpg
Alternative Investments/Hedge Funds: Inflation Fears Boost Hedge Funds’ AUM To Nearly $4T
July 23, 2021     Alternative Investments, Hedge Funds, News

A market survey by alternatives technology provider Vidrio Financial shows that fears of inflation have helped move substantial fund allocations during the first half of 2021 to alternative assets such…

https://dailyalts.com/wp-content/uploads/2021/07/bitcoin-6251865_640.jpg
Alternative Investments/Digital: Global X Throws Its Hat In The Bitcoin ETF Ring

Global X, the New York-based ETF provider and subsidiary of $560 billion investment manager Mirae Asset, has filed with the SEC for permission to launch a bitcoin ETF titled the…

https://dailyalts.com/wp-content/uploads/2021/07/bitcoin-4011305_640.jpg
Digital Assets: Crypto Adoption Stories From JPMorgan, Gallup Poll, Bitcoin Depot, And UBS
July 23, 2021     Digital Assets, News

Four news bites that show cryptos are hanging on, recent crashes notwithstanding. From bitcoin ATMs to crypto FOMO, here goes….