The best part – you can invest in it without investing directly in it.
At the moment, the digital currency is again nearing $30,000. All on speculation we could soon see a spot Bitcoin ETF. Helping, according to Bitcoin.com:
“Steven Schoenfeld, former head of International Equity Product Strategy at Barclays Global Investors (now Blackrock), expects the U.S. Securities and Exchange Commission (SEC) to approve all spot bitcoin exchange-traded fund (ETF) applications in three to six months. He also anticipates that the greenlighting of spot bitcoin and Ethereum ETFs has the potential to inject between $150 billion and $200 billion of capital into these investment products.”
Not only would approval send BTC to higher highs, it could have a major impact on companies that own a significant amount of Bitcoin, such as MicroStrategy, PayPal, even mining stocks, like Marathon Digital and Riot Platforms. But remember, if you want to safely diversify at a low cost, exchange traded funds (ETFs) are the way to go.
Look at the ProShares Bitcoin Strategy ETF (BITO) for example.
If you believe the value of BTC will push higher, you can invest in the Pro Shares Bitcoin Strategy ETF (BITO). With an expense ratio of 0.95%, the ETF tracks the performance of spot Bitcoin.
This one mimics the price of Bitcoin as closely as possible without investing in the cryptocurrency itself. As noted by Money, “Like all crypto ETFs, part of the allure of BITO is that investors don’t need to deal with cryptocurrency wallets and private keys but can instead invest through a broker they already use.”
If you’re inexperienced at trading options, you’ll soon discover that at any time, an option will have three different prices. Understanding the first of the three prices is easy, it’s the price the last time the option was traded. We refer to this as ‘Last Price’. When trading options, the Last Price is of ‘little value’. One of the most difficult things for inexperienced options traders to get used to is the lack of liquidity in most options. We’re not referring here to Index options such as the SPX, or the OEX, (which are quite liquid). What we’re referring to when we say “lack if liquidity”, are options in individual stocks. There are just too many options to choose from and there are not enough traders in the world to create a liquid market in all of them. Therefore, when buying (or selling) options, you’ll need to get used to the fact that in most cases, the other side of your trade will be taken by an options ‘specialist’ or ‘market maker’ or just plain and simply, ‘the guy on the floor’.
It’s the job of the options specialist, to allow us to buy (or sell) any option of our choice. If there happens to be an ‘open order’ placed by another trader that will satisfy the conditions of our purchase, then the specialist merely ‘matches’ the buyer with the seller and his (or her) job is finisher. However, when this is not the case, it becomes the job of the specialist to take the other side of our trade.
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