Cathie Wood’s $ 500,000 Bitcoin Appeal Is Already Underway – How To Ride The Half-Million Wave – .

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Cathie Wood’s $ 500,000 Bitcoin Appeal Is Already Underway – How To Ride The Half-Million Wave – .


Wood’s wild prediction for Tesla came true. This one could also

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Cathie Wood isn’t afraid to make bold predictions.

In early 2018, the owner of Ark Invest said Tesla shares would rise from $ 300 to $ 4,000 in five years, upside potential of around 1,200%.

Yet Tesla hit the target early. In January, Tesla shares broke the $ 800 or $ 4,000 mark on a split-adjusted basis.

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Pretty amazing, but Tesla might not be Wood’s most optimistic call yet. Last month, she told CNBC that the price of Bitcoin could reach half a million dollars in five years.

“If we’re right and companies continue to diversify their cash flow into something like Bitcoin, and institutional investors start allocating 5% of their funds to Bitcoin […] we think the price will be ten times what it is today. Instead of $ 45,000, over $ 500,000, ”she said.

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Bitcoin is already moving in this direction; the cryptocurrency is trading at around $ 62,000 at the time of writing.

Here are a few ways to play the crypto boom.

Bitcoin ETF

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Wood herself offers a new way to invest in cryptocurrency. In September, Ark Next Generation Internet ETF (exchange-traded funds) amended its prospectus to include exposure to Bitcoin through Canadian ETFs.

The first bitcoin ETF on the New York Stock Exchange just started trading last week, but Canada has been ahead of the United States for some time. Several Bitcoin ETFs were launched in Canada this year, including Purpose Bitcoin ETF, 3iQ CoinShares Bitcoin ETF, CI Galaxy Bitcoin ETF, and Evolve Bitcoin ETF.

In the United States, the launch of the ProShare Bitcoin Strategy ETF was arguably a major catalyst for Bitcoin’s latest rally. The fund holds bitcoin futures contracts that trade on the Chicago Mercantile Exchange.

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Investors who want to gain exposure to the crypto market can invest in these ETFs, but you can also buy Bitcoin directly. Some investment apps allow you to buy both cryptocurrencies and ETFs without a commission.

Cryptocurrency stocks

MicroStrategy logo with bitcoin

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Companies that have linked to the crypto market are offering investors another way to profit from the crypto rally.

For example, enterprise software company MicroStrategy bought 9,000 bitcoins in the third quarter. This brings its total bitcoin count to 114,042, a stock worth around $ 7 billion.

Due to MicroStrategy’s huge Bitcoin stake, some investors have used it as a proxy to invest in cryptocurrency. In the past, Bitcoin rallies have generally led to similar moves in MicroStrategy’s share price.

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Then there’s Riot Blockchain, which operates Bitcoin and hosts Bitcoin mining equipment for institutional clients. Thanks to the Bitcoin price spike, Riot shares have returned 577% in the past 12 months.

Investors can also check out Coinbase, which operates the largest cryptocurrency exchange in the United States. The company’s stock price fell below its IPO price of $ 250 over the summer, but the recent cryptocurrency explosion took it back to over $ 300.

A “finer” alternative?

Painting by Andy Warhol in the gallery

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Ultimately, cryptocurrencies are volatile. Not everyone feels comfortable owning an asset that seems to swing around wildly every week.

If you want to invest in something that has little correlation with the ups and downs of the stock market and the crypto market, you might want to consider an overlooked asset: the fine art.

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Contemporary art has already surpassed the S&P 500 by 174% in the past 25 years, according to the Citi Global Art Market table.

Investing in art by Banksy and Andy Warhol was only an option for the ultra-rich, like Wood. But with a new investment platform, you can also invest in iconic artwork, just like Jeff Bezos and Bill Gates do.

This article was created by Wise Publishing. Wise is dedicated to providing information that helps readers navigate the complex landscape of personal finance. Wise only associates with brands that he trusts and that he believes can be of use to the reader. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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