You don’t need to buy the next Amazon or Google share to make big money: you can do it stock by stock through exchange-traded funds (ETFs). One of the most prominent of such funds is the Grayscale Bitcoin Trust ETF. Grayscale Bitcoin Trust ETF offers exposure to the performance of Bitcoin in the form of a security that can be traded on a stock exchange. In other words, instead of buying actual Bitcoin and holding it in a wallet, Grayscale Bitcoin Trust ETF allows you to own Bitcoin by owning shares that represent the cryptocurrency’s value. This removes all the complexities of transferring large amounts of money from bank to bank and the security concerns associated with storing your Bitcoin in a wallet. Since 2013, the fund was allowed for investment by high net-worth accredited investors only. Today, it is traded publicly since 2015.
The Grayscale Bitcoin Trust ETF has a 1.5 per cent expense ratio and doesn’t strictly track the price of Bitcoin, because – like the Lowvol ETF – it buys the underlying asset. Even so, it has significantly outperformed traditional indices such as the S&P 500 since inception. It’s anti-inflationary qualities, its role as digital gold with a scarce supply cap, and as a now-accepted digital asset, will likely see further price appreciation. Its volatility makes it a rideshare experience, not a train, but fees and indirect exposure make the ETF a compelling choice for investors who want a simpler way to own Bitcoin apart.
Alerts such as Fool’s ‘Double Down’ – promising tips from ‘expert analysts’ – give portfolio investors a chance to catch up on market movers, signalling the ‘next big thing’, and recommending undiscovered high-performing stocks. And, yes, once you become as big as Amazon, analysts don’t have to write about you – you just absorb them. John Mackey, a member of The Motley Fool’s board, was the former chief executive officer of Whole Foods Market, which was acquired by Amazon.
Source: Yahoo! Finance
