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Bitcoin surpassed $ 19,000 today and is up about 170% year to date. The cryptocurrency is now just slightly below its all-time high of $ 19,783 reached in December 2017.
An unprecedented monetary and fiscal stimulus has boosted the best-known digital currency as its supply is limited. Interest from billionaire investors like Paul Tudor Jones and Stanley Druckenmiller and wider acceptance of cryptocurrencies have further fueled the surge.
Last month, PayPal (PYPL – Free report) announced the launch of a new service that allows its users to buy, hold and sell cryptocurrency directly from their account. Square (SQ – Free report) and PayPal customers are buying most of the new bitcoin supply, according to CNBC.
Investors interested in bitcoin and other cryptocurrencies should be aware of the risks before deciding to invest. These are very volatile and usually go through boom-bust cycles. Unlike real currencies, issued by central banks, cryptocurrencies do not have central bank support. Furthermore, there have been many cases of hackers stealing bitcoins.
The Greyscale Bitcoin Investment Trust (GBTC – Free report) acts as a bitcoin fund but is not an ETF. Several ETF providers have filed for cryptocurrency ETFs, but all of these requests have so far been denied by the SEC. Shares of GBTC, which may be held in certain IRA and other brokerage accounts, however, usually trade at a premium over their NAV.
Blockchain, the technology behind cryptocurrencies, is still very new and its full potential is not yet known, but many experts say it could change the global economy.
There are four blockchain ETFs that investors could consider. The Amplify Transformational Data Sharing ETF (BLOK – Free report) and Reality Shares Nasdaq NexGen Economy ETF (BLCN – Free report) have earned between 50% and 53% this year. Overstock (OSTK – Free Report), Square, PayPal, Nvdia (NVDA – Free report) and AMD (AMD – Free report) are among the major holdings in these ETFs.
Watch the short video to find out more.
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