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

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 topped the $ 800 mark, or $ 4,000 on a split-adjusted basis.

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.

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 even if you’re just dabbling with some of your “spare currency”.

Bitcoin ETF

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Wood herself offers a new way to invest in cryptocurrency. In September, Ark Next Generation Internet ETF 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.

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

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

The story continues

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.

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.

And while crypto stocks can be expensive, you can get a share of these companies using a popular app that lets you buy fractional stocks with as much money as you are willing to spend.

A “finer” alternative?

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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.

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

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 provides information only and should not be construed as advice. It is provided without warranty of any kind.

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