Cassie Wood is not afraid of bold predictions. In early 2018, the owner of Ark Invest said Tesla stock would rise from $300 to $4,000 within five years. At the time, this was a potential upside of around 1,200%. But Tesla reached its goal early. In January of this year, Tesla’s stock price soared to over $800, up to $4,000 on a split-adjusted basis.
Quite a surprise, but she told CNBC last month that the price of bitcoin could soar to $500,000 in five years. “If we are right and businesses continue to diversify their cash into Bitcoin-like, and institutional investors start allocating 5% of their funds to Bitcoin, the price will be ten times what it is today,” she believes. Instead of $5,000, it will be more than $500,000.”
Bitcoin is already moving in that direction. At the time of writing this article, it is trading at around $62,000. Wood himself is offering a new way to invest in cryptocurrencies. In September, the Ark Next Generation Internet ETF (Ark Next Generation Internet ETF) revised its prospectus to include exposure to Bitcoin through the Canadian ETF market.
The first Bitcoin ETF on the New York Stock Exchange (NYSE) started trading last week, but Canada is already ahead of the US for some time. Several Bitcoin ETFs were launched in Canada this year, including the Purpose Bitcoin ETF, the 3iQ CoinShares Bitcoin ETF, the CI Galaxy Bitcoin ETF, and the Evolve Bitcoin ETF.
The debut of the ProShare Bitcoin Strategic ETF in the US was arguably the main catalyst for Bitcoin’s recent rally. The fund holds Bitcoin futures contracts traded on the Chicago Mercantile Exchange (CME). Investors who want exposure to the cryptocurrency market can invest in these ETFs, but they can also purchase Bitcoin directly. Some investment apps allow you to purchase both cryptocurrencies and ETFs without commission.
Companies that have tied themselves to the cryptocurrency market are offering investors another way to benefit from the cryptocurrency rally. Enterprise software company MicroStrategy, for example, bought 9,000 bitcoins in the third quarter. This brings the total number of Bitcoins to 114,042, or about $7 billion.
Because of MicroStrategy’s huge stake in Bitcoin, some investors have used it as a proxy for cryptocurrency investments. In the past, Bitcoin’s rally has generally led to movements similar to the company’s stock price. Another company is Riot Blockchain, which mines Bitcoin and hosts mining rigs for institutional clients. The company’s stock has also posted an astonishing 577% return over the past 12 months, thanks to the soaring Bitcoin price.
Investors will also see significant growth in Coinbase, which operates the largest cryptocurrency exchange in the United States. The company’s stock fell below its IPO price of $250 during the summer, but recently returned to above $300 due to the popularity of the cryptocurrency. Crypto stocks can be expensive, but you can get some of these companies using popular apps where you can buy some of the stock for whatever you’re willing to spend.
Cryptocurrencies are volatile on a daily basis. Not everyone feels comfortable holding an asset that appears to be swinging wildly every week. If you want to invest in something that has little to do with the ups and downs of the stock and cryptocurrency markets, you can consider an overlooked asset: fine art.
According to the Citi Global Art Market chart, contemporary art has already outperformed the S&P 500 by 174% over the past 25 years. Investing in art like Banksy and Andy Warhol was an option only available to the super-rich like Wood. But with the new investment platform, you can also invest in iconic works of art, as Jeff Bezos and Bill Gates are doing.
Kyungsoo Kim, Editor-in-Chief, Global Economics ggs077@g-enews.com
[알림] This article is for investment judgment reference only, and we are not responsible for any investment loss based on it.
.
