Bitcoin dropped below $60,000 after a spectacular surge in October. Cathie Wood of Ark Invest, though, is upbeat about the world’s largest cryptocurrency, BTC.
She’s even more bullish now than she was before. According to Wood, if “institutional investors go into Bitcoin and allocate 5 percent of their portfolios to Bitcoin,” the cryptocurrency’s price will skyrocket to around $560,000 by 2026.
Her most recent forecast portrays a return of more than 800 percent. That may appear far-fetched, but keep in mind that Wood was dead on when she projected a 1,200 percent increase in Tesla’s stock price.
So, here are a couple of ways to profit from the crypto boom, including those with low fees and zero commissions.
ETFs that Invest in Bitcoin
Wood herself is promoting a new bitcoin investment strategy. The prospectus for the Ark Next Generation Internet ETF was transformed in September to offer exposure to Bitcoin through Canadian ETFs.
The first Bitcoin, BTC exchange-traded fund (ETF) began trading on the New York Stock Exchange last month, but Canada has been ahead of the US for some time. Purpose Bitcoin ETF, 3iQ CoinShares Bitcoin ETF, CI Galaxy Bitcoin ETF, and Evolve Bitcoin ETF are among the Bitcoin ETFs that have launched in Canada this year.
The launch of the ProShare Bitcoin Strategy ETF in the United States was arguably a major driver for Bitcoin’s climb in October. On the Chicago Mercantile Exchange, the fund holds bitcoin futures contracts.
These ETFs are available to investors who wish to gain exposure to the crypto market, but you may also buy Bitcoin directly. Some investing apps allow you to buy cryptocurrencies and exchange-traded funds (ETFs) without paying a commission.
Stocks in Cryptocurrencies
Companies that have ties to the crypto market offer investors yet another option to profit from the crypto rise.
In Q3, for example, enterprise software firm MicroStrategy purchased 9,000 bitcoins. This takes the total number of bitcoins held by the company to 114,042, representing a $6.7 billion hoard.
Some investors have used MicroStrategy as a proxy for investing in Bitcoin because of the company’s large Bitcoin holdings. In the past, Bitcoin rallies were frequently followed by comparable movements in MicroStrategy’s stock price.
Then there’s Riot Blockchain, which mines Bitcoin for institutional clients and hosts Bitcoin mining equipment. Riot shares have returned a whopping 492 percent in the last year thanks to rising Bitcoin prices.
Coinbase, the largest cryptocurrency exchange in the United States, is another option for investors. During the summer, the company’s stock dipped below its IPO price of $250, but a recent surge in cryptocurrency prices has sent it back above $300.
While crypto stocks can be expensive, you can get a piece of the action using popular software that allows you to buy fractions of shares for as little as a few dollars.
Is there a ‘Finer’ Option?
Cryptocurrencies are, at the end of the day, quite volatile. Not everyone is comfortable holding an asset that appears to have weekly dramatic swings.
If you want to invest in something that isn’t affected by the ups and downs of the stock market or the cryptocurrency market, you might want to consider fine art.
According to the Citi Global Art Market chart, contemporary art has already outpaced the SP 500 by a whopping 174 percent over the last 25 years.
Investing in art by Banksy and Andy Warhol, for example, used to be reserved for the ultra-wealthy, such as Wood. But, like Jeff Bezos and Bill Gates, you can now invest in great artworks through a new investing site.