Wall Street Firms Point Hack-Worried Investors to Bitcoin Proxy Stocks
Decrypt reported on October 30, 2026 that Wall Street firms are telling investors who worry about crypto hacks to consider "Bitcoin proxies" traded on the stock market instead. A Bitcoin proxy is a regular stock or fund whose price tends to move with Bitcoin (the original cryptocurrency) without the investor holding the coins directly.
The idea in a few points
- Wall Street firms argue that investors worried about exchange hacks can get Bitcoin-like exposure through stocks listed on exchanges.
- Buying shares through a stock market means the investor does not hold coins in a crypto wallet or on a crypto exchange (an online platform for trading crypto), which are the targets of hacks.
- Decrypt published this report on October 30, 2026, amid ongoing fallout from a major exchange hack.
The hack that set the stage
The recommendation comes as the crypto world digests what recent reporting has called a record hack of Binance, one of the world's largest crypto exchanges. Newisty's recent coverage, citing headlines from the past days, reported: the FBI says North Korea-linked group TraderTraitor stole $6 billion from Binance and asked crypto services to block the stolen funds; Binance says 90% of the stolen assets have been replaced and withdrawals are set to resume; institutional investors have been pulling funds off exchanges; and Bitcoin fell below $77,000 as the hack coincided with a tech stock selloff. These points come from our earlier headlines and are not re-verified in this article.
What is confirmed
- Decrypt, a crypto news outlet, published the report on October 30, 2026, saying Wall Street firms recommend stock-market Bitcoin proxies for investors concerned about hacks.
What is still unclear
- The supplied source material does not name the specific Wall Street firms or the exact stocks they recommend as proxies.
- The full reasoning and any caveats the firms gave are not included in the material available for this article.
Why it matters
Self-custody of crypto carries the risk of exchange or wallet theft, and the recent Binance hack kept that risk in the headlines. If traditional finance firms steer worried clients toward stock-market instruments instead of coins, it shapes where money flows in the crypto ecosystem. This is a reported recommendation, not a guarantee, and it does not mean proxy stocks are free of their own risks, which the available material does not detail.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.