Personal Finance

I typically only invest my money in index funds but I am feeling FOMO as Bitcoin surges higher - what should i do?

Ian Cooper

Published: November 13, 2024 10:59 am

I typically only invest my money in index funds but I am feeling FOMO as Bitcoin surges higher – what should I do?

That was a question that recently appeared on Reddit, which you can see here.

Key Points About This Article

• To be honest, it wouldn’t hurt to have some exposure to Bitcoin either directly or indirectly. That’s because we now have a crypto-bull president taking office in January.
• If you believe the value of BTC will push higher, you can invest in the Pro Shares Bitcoin Strategy ETF, for example.
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To be honest, it wouldn’t hurt to have some exposure to Bitcoin either directly or indirectly. That’s because we now have a crypto-bull president taking office in January.

He’s bullish on cryptocurrencies, which would explain why Bitcoin rallied to an all-time high a day after the election. 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.

All of which could easily send Bitcoin prices rocketing higher. In fact, some analysts believe Bitcoin could rally to $100,000 with Trump in office.

Plus, if you don’t to directly invest in Bitcoin, you can always invest indirectly with Bitcoin-related stocks, such as MicroStrategy and Bitcoin mining stocks, like Marathon.

Or, you can use exchange-traded funds such as the ProShares Bitcoin Strategy ETF.

If you believe the value of BTC will push higher, you can invest in the ProShares 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.

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.”

There’s also the Simplify Bitcoin Strategy Plus Income ETF.

While the Simplify Bitcoin Strategy Plus Income ETF (NASDAQ: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 carries a yield of 1.7%.

The ETF targets 100% exposure to Bitcoin by investing in front-month CME futures contracts. It also generates income by selling short-dated put and/or call spreads on equity and fixed-income assets, which include indices, ETFs or securities.

Or, look at MicroStrategy.

Over the last few months, MicroStrategy (NASDAQ:MSTR) ran from $120 to a recent high of $356.59. All thanks to Bitcoin. That’s because MSTR now owns 279,420 Bitcoin after adding another 27,200 BTC over the last few days. With that, the company now sit on nearly $25 billion worth of BTC.

If you want exposure to Bitcoin, now is a great time to invest in it either directly or indirectly – especially with Bitcoin forecast to soar to $100,000 and above.