INSUBCONTINENT EXCLUSIVE:
Bitcoin, the world's largest cryptocurrency, is seemingly everywhere these days
From fast food to sports and even the local Walmart, it's finding a place in the mainstream
As an investment, its spectacular rally this year has cheered its adherents while raising the curiosity of the non-initiated
In 2021 alone, Bitcoin's price has more than doubled
Time to invest yourself?The easiest way to bet on Bitcoin is, of course, to buy it
But there are many reasons you might not want to take such a direct route
Maybe you know nothing about Bitcoin and want to get involved but prefer the familiarity of more traditional kinds of investments
Or maybe you know a lot about Bitcoin and don't want to touch it, cautious about seemingly random price swings
Or you own Bitcoin already, and you're looking to invest more broadly in the future of cryptocurrencies
The good news is, there are more ways than ever for U.S
investors to gain exposure.Here's a rundown of the alternatives:ETFsWhile exchange-traded funds that track the price of Bitcoin have been
available for a while in countries such as Canada and in Europe, it's been a different story in the U.S., where they had long been blocked
That all changed in October, when the first Bitcoin-related ETFs were allowed to debut.Importantly though, these products invest in Bitcoin
futures, which track Bitcoin's spot price indirectly through the use of contracts overseen by the Chicago Mercantile Exchange
(The Securities and Exchange Commission contends that this version has more investor protections than a regular Bitcoin ETF.) Two have
launched so far: the (BITO) and the (BTF).They each charge $9.50 for every $1,000 you invest, and involve the complicated world of futures,
which are tools that traders use to bet on price movements
But these funds may be ideal for those new to the world of Bitcoin or those hoping to consolidate their holdings in a traditional brokerage
account that doesn't allow the actual cryptocurrency.Some issuers such as Direxion Investments and Valkyrie Investments have sought to
launch Bitcoin futures funds with leverage, which allow investors make supersized bets that the price of Bitcoin will rise or fall
Both pulled their applications from the SEC this week, likely after signals from U.S
regulators that they were unlikely to be approved, according to Bloomberg Intelligence
But it's something to look out for in the future.The ETF industry is also hoping to see a fund that actually holds Bitcoin - more than a
dozen issuers are interested in launching the products - but reluctance from the SEC means this is likely a ways off.Buying Traditional
Stock in a Bitcoin-Related CompanyCompanies have structures that might be more familiar to the average investor, such as executive teams
that make decisions and financial results that have to be disclosed
That's one reason some prefer this route to get indirect exposure to Bitcoin."It can be easier for people to get into industries that they
already understand and who are adopting these technologies to make them more efficient," said Sweta Bhargav, principal financial adviser at
Adviso Wealth in Philadelphia
"It can be a better place to start for investors."Coinbase Global Inc
Because most of its revenue comes from fees it charges users to deposit and trade funds, the valuation of the crypto exchange fluctuates in
close correlation with Bitcoin's price
In a SEC filing, the company laid it out: "Our net revenue is substantially dependent on the prices of crypto assets and volume of
transactions conducted on our platform."Alternately, investors could focus on companies that are bullish on Bitcoin and have substantial
has about $1.26 billion in "digital assets" according to its latest financial statements.Other public companies that have substantial
holdings include MicroStrategy Inc., an enterprise software firm had 114,042 units of Bitcoin as of the end of September; and Galaxy Digital
Holdings Ltd., with hundreds of millions.With companies that do things other than hold Bitcoin, you have to also evaluate their sector and
individual product performance
The stocks' performance will be influenced by a range of factors that individual companies have to contend with, not just the price of
Bitcoin."The risk-return profile is not exactly the same, as you are also taking a position in the firms themselves and therefore take on
exposure to their unique risks," said Michael Kelly of Switchback Financial in Madison, Connecticut.Year to date, Tesla has risen 73%, while
MicroStrategy has gained 105% and Galaxy Digital rallied more than 200%.Stock ETFsTo invest in multiple companies at once, there are several
exchange-traded funds that hold stocks of firms involved in the Bitcoin ecosystem.For instance, the Bitwise Crypto Industry Innovators ETF
(BITQ) lists Galaxy Digital, Coinbase and MicroStrategy as its largest holdings
It costs $8.50 for every $1000 you invest.Amplify Transformational Data Sharing (BLOK) fund has a similar aim, while the Viridi Cleaner
Energy Crypto-Mining - Semiconductor ETF (RIGZ) offers an ESG twist
And more are coming: This week, Valkyrie filed to launch an actively managed fund that would invest in Bitcoin mining operations.Investing
in the TechnologyBitcoin is a digital currency: Each unit is an encrypted record stored in a public ledger called a blockchain, as you
(And if you don't, watch this.) By solving complex mathematical problems to verify transactions of the currency, individuals can be
"rewarded" with new Bitcoin.That opens the door for companies mining Bitcoin, using powerful computers to create units of the digital
currency from scratch."You don't have to be a computer geek anymore to mine," said Julius de Kempenaer, senior technical analyst at
"There are companies who can do it for you."Marathon Digital Holdings Inc
are two of the largest firms in the sector
On Marathon's website, the Las Vegas company states that owning a stake "helps you gain exposure to Bitcoin in your portfolio without having
to deal with the complications of holding the asset directly." Castle Rock, Colorado-based Riot specializes in acquisitions of
crypto-related businesses: In April, the company disclosed it was buying North America's largest Bitcoin mining facility, Whinstone U.S., in
a $651 million cash-and-stock deal.Old-School TrustsBefore the futures-based ETFs debuted, trusts were the go-to place to gain interest
The most well-known one is the Grayscale Bitcoin Trust launched by Grayscale Investments, a U.S
crypto investment firm, in 2013.The downside is that Grayscale charges a 2% fee for its management of the fund
"There's a lot more fees associated with it
If you own Bitcoin directly, you're not paying any fees to hold it or trading fees for humans to work," said Ryan Cole, a private wealth
adviser at Citrine Capital, a San Francisco-based wealth management firm.Moreover, the fund sometimes trades at a discount to the value of
Bitcoin it holds.However, the company has filed to convert the trust into an ETF
That would help resolve the discount issue, thanks to a feature in the ETF format that allows shares to be created and redeemed, keeping the
price in line with that of the securities the fund tracks
Permission to convert is still awaiting the green light from the SEC.Then There's Always the AltCoinsThere's also the option of buying one
of the many alternative coins, or altcoins for short
Litecoin, created in 2011, has risen 60% this year, compared with about 110% for Bitcoin
Ethereum, the second-largest digital currency, has risen 510% over the same time period.Dogecoin and Shiba Inu have made a splash recently,
but the fundamental reasons anyone would invest in either of these "memecoins" are murky at best
Still, they've risen exponentially this year.Or Just Buy BitcoinIt used to be a lot more complicated to own a piece of Bitcoin - either a
whole coin or a fraction of one
There were wallets to open, keys to keep track of and it oftentimes meant dealing with brand-new companies without track records or head
Now, several firms - including exchanges such as Coinbase, money transfer apps like CashApp and brokerages such as Robinhood - have made it
easy to buy Bitcoin and other cryptocurrencies, though fees and policies vary.One of the latest is 's Venmo, which allows customers buy,
sell and hold cryptocurrencies like Bitcoin and Ethereum
There's even a for credit-card holders to automatically purchase crypto from their Venmo account using the cash back they've earned from
