Bitcoin bull Tom Lee has identified 12 stocks that are perfect if you don't want to own it

Fundstrat

Tom Lee

Bitcoin is still too risky for many investors with a lot of money at stake.

But there's a handful of stocks that stand to benefit from bitcoin and the underlying blockchain technology, according to Tom Lee, a strategist at Fundstrat and one of the most prominent advocates for the cryptocurrency.

The basket of 12 stocks he recommended in a note Friday has gained 136% this year. That's more than the S&P 500's 18% rally, but is dwarfed by bitcoin's 1,588% rise.

"We believe investors should have exposure to blockchain, particularly given bitcoin has essentially zero correlation to equities, bonds and commodities - hence, as a portfolio strategy, bitcoin is a good diversification tool," Lee said. He sees one bitcoin costing $25,000 by the end of 2022.

The stocks Lee recommends offer "three types of leverage- (i) price gains of bitcoin/tokens; (ii) transaction activity (either wallets or exchanges); and (iii) mining based on proof of work or proof of stake."

Here they are, in ascending order of how much exposure Lee estimates they have to bitcoin:

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