Apple could be the next major tech company to buy cryptocurrencies, according to client RBC Capital Markets. This move could be the biggest seen in the crypto industry and could herald a new spate of adoption by institutions.
RBC Highlights The Merits Of Apple Building An Exchange Platform
RBC Capital Markets made this point in a client note quoted by Bloomberg. According to the note, RBC Capital Markets urged the tech giant to acquire some bitcoins and create a bitcoin exchange platform.
RBC Capital Markets argues that such a move by Apple would result in immense gains for the tech company rather than getting into the electric vehicle (EV) market. Apple is thought to be preparing a move to pivot into the EV market. However, it was recently revealed that automobile giants Hyundai and Kia had distanced themselves from a potential partnership with the tech giant.
Apple has expanded its services over the years towards offering financial services with the Apple Card in 2019. RBC believes that the wallet could develop if the tech giant adds cryptocurrencies to its portfolio of services.
Several fintech companies have added cryptocurrency trading into their list of services. Square made $1.6billion last quarter through bitcoin trading from its 30 million active users. RBC signaled that Apple, with its user base of 1.5 billion people, could make up to $40 billion yearly from a wallet based crypto exchange.
Apple Value Will Soar If It Pivots Towards Crypto
RBC further stated in the note that Apple shares could move higher if the tech giants step into the cryptocurrency markets. RBC predicts that Apple’s price could increase from $154 to $171 before the close of Friday.
This, according to RBC analyst Mitch Steves would help the stock maintain an outperform rating on the shares. Apple will also cement its role as a leader in the crypto industry if it adds the purchase and sale of cryptocurrency to its wallet app. “If the firm decides to enter into the crypto exchange business, we think the firm could immediately gain market share and disrupt the industry,” It said.
Telsa’s recent purchase of $1.5 billion on Monday made the price of Bitcoin hit new record highs. Apple pivoting towards bitcoins will likely send the price of Bitcoin surging towards new market highs.