A few short years ago, the idea of Bitcoin (CRYPTO:BTC) hitting $100,000 was laughable.
But today, it finally happened.
The digital currency hit a high of $103,363. Now, according to Standard Chartered, Bitcoin could see $200,000 by the end of 2025. Analysts at Bernstein also say it could rally to $200,000 by the end of 2025, as well. Even D.A. Davidson analysts just said, “Bitcoin’s main current application as a store of value — an appreciating, low-correlation asset that replaces gold as a hedge against a decline in economic stability,” as quoted by CNBC.
Key Points About This Article
- Bitcoin just hit a high of $103,363. Now, according to Standard Chartered, Bitcoin could see $200,000 by the end of 2025. Analysts at Bernstein also say it could rally to $200,000 by the end of 2025, as well.
- If you believe the value of Bitcoin will push higher, you can invest in the Pro Shares Bitcoin Strategy ETF, MicroStrategy and the Simplify Bitcoin Strategy Plus Income ETF.
- Not only did Trump just select crypto-supporter Paul Atkins as the new US SEC Chair, but he also wants to turn the U.S. into the “crypto capital of the planet.”
- If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
President-Elect Donald Trump also plays a major role in the latest rally.
Not only did he just select crypto-supporter Paul Atkins as the new US SEC Chair, but he also wants to turn the U.S. into the “crypto capital of the planet,” as noted by Reuters. He also wants to create a government stockpile of Bitcoin, create an advisory council, and prevent the Federal Reserve from creating its own digital currency.
One of the best ways to trade Bitcoin is by actually buying Bitcoin.
But there are other ways to trade it without directly trading it. Here are three ways.
ProShares Bitcoin Strategy ETF
If you believe the value of Bitcoin will push higher, you can invest in the Pro Shares Bitcoin Strategy ETF(NYSEARCA:BITO). With an expense ratio of 0.95%, the ETF tracks the performance of spot Bitcoin, and is the world’s largest and most actively traded cryptocurrency ETF, according to ProShares.com.
BITO 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.”
MicroStrategy
With a market cap of $90.51 billion, MicroStrategy (NASDAQ:MSTR) provides business intelligence, mobile software and cloud-based services.
But what makes it really exciting is its 402,100 Bitcoin holdings – which, if we use a flat $100,000 is now worth just over $40.12 billion at the moment. That means every time Bitcoin runs, the value of MSTR’s BTC holdings runs, which sends shares of MSTR screaming higher.
Even better, they’re not done buying Bitcoin.
As noted by MSTR Executive Chair Michael Saylor:
“MicroStrategy is the largest public company holder of Bitcoin,” Saylor began. ‘Nearly all of our market cap is levered to Bitcoin itself.’ He emphasized that while Bitcoin has a volatility of about 50, MicroStrategy has ‘levered that up by 20 to 30%,’ resulting in higher volatility and potentially higher returns.”
He added, “MicroStrategy outperformed all 500 of the S&P 500 companies over the last four years, including Nvidia. We’re up a thousand percent. We stay in our lane, and our lane is we are long levered Bitcoin, and we think that’s enough.”
In short, as long as Bitcoin can push higher, MSTR is a standout way to trade it.
Simplify Bitcoin Strategy Plus Income ETF
Or, if you want to earn income while Bitcoin appreciates higher, there’s also the Simplify Bitcoin Strategy Plus Income ETF (NASDAQ:MAXI). While MAXI does not invest in Bitcoin directly, it still gives us access to Bitcoin while selling short-dated put and/or call spreads to generate income. It also has a distribution rate of 51.85% with a 30-day yield of 1.37%.
The fund recently closed at $31.25 and could rally even higher if Bitcoin pushes aggressively higher. The ETF has also consistently paid a monthly dividend since October 26, 2022. It also targets 100% exposure to Bitcoin by investing in front-month CME futures contracts. And it generates income by selling short-dated put and/or call spreads on equity and fixed-income assets, which include indices, ETFs or securities.
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