One Japanese financial firm is riding the crypto wave like no other. Shares of Monex Group Inc. have been tracking the ups and downs of Bitcoin, and have more than tripled since the cryptocurrency’s rally gained momentum in October. The online brokerage owns crypto exchange Coincheck Inc., whose profit has soared as clients flock to digital assets.

Investors have been pushing up shares of firms closely linked to digital tokens around the world and Bitcoin’s fivefold jump in the past year has come amid a flood of money pumped into the global financial system during the coronavirus pandemic.

Indeed, Bitcoin rose above a record $50,000 and hit a market capitalization of $1 trillion last week, countering analyst warnings that it is an “economic side show” and a poor hedge against a fall in stock prices.

Bank of Japan 'Seriously Working' on Digital Yen: Monex Group CEO | COINDESK
Bank of Japan ‘Seriously Working’ on Digital Yen: Monex Group CEO | COINDESK

Bitcoin’s gains have been fueled by signs it is gaining acceptance among mainstream investors and companies, from Tesla Inc. and Mastercard Inc. to BNY Mellon. “The key for Bitcoin’s path higher is to win over more corporate endorsements,” said Edward Moya, senior market analyst at Oanda Corp.

Just over 10 years old, Bitcoin might already be the best-performing investment of all time, writes Bloomberg Opinion columnist Nir Kaissar.

Still, he says, it might also be the most volatile, and volatility has a way of luring people into ill-timed and costly investing choices. So with all the headlines about Bitcoin’s meteoric rise, Kaissar examines how its investors are doing.