Bitcoin is beginning to rise again after a crash earlier this year. After reaching a high of US$63,729 in April, BTC began a steep descent, going as low as US$30,000. The downward price movement had many investors panicking at the time, but it was not to last. Just weeks after reaching US$30,000, Bitcoin rallied. Today it sits at a princely US$46,000. BTC is still not anywhere near its all-time highs, but it is once again in bullish mode.
In this article, I’ll outline three Bitcoin plays that you can use to ride the wave of positive momentum in the world’s biggest cryptocurrency.
Purpose Bitcoin ETF The Purpose Bitcoin ETF (TSX:BTCC.B) is a publicly-traded ETF that holds–you guessed it–Bitcoin. The fund doesn’t have any other holdings apart from BTC, making it essentially a stock market traded Bitcoin play. The fund’s managers charge a 1% per year fee. That might sound steep, especially considering that this fund doesn’t involve any active management, but it may be worth it.
First off, with a publicly-traded ETF like BTCC.B, you don’t have to worry about security issues like lost passwords. Second, this fund can easily be held in a Tax-Free Savings Account (TFSA), so you don’t need to worry about paying taxes on your holdings. Overall, it’s a nice alternative to holding Bitcoin that could save you money in the long run.
HIVE Blockchain Technologies HIVE Blockchain Technologies (TSXV:HIVE) is a crypto mining company that mines BTC and Ether. It’s not a Bitcoin pure play but it’s pretty close to it. The company mines two different cryptocurrencies, of which Bitcoin is one. In its most recent quarter, HIVE achieved:
- $13.7 million in digital currency income, up 147%.
- $13.7 million in cash flow, up from $5.7 million.
- $0.05 in net income per share, up from $0.01.
Bitcoin Last but not least, we have Bitcoin itself.
If you’re pretty tech-savvy and know how to get a crypto wallet, you can always invest in good old BTC and just sit on the position. Unlike BTCC.B and HIVE, Bitcoin has no fees, expenses, or other financial factors you have to keep on top of. As long as demand for Bitcoin increases more than supply, your BTC will keep going up.
On that note, about 18.5 million of the 21 million total minable Bitcoin have been mined already. So BTC is nearing its supply cap, which it should hit in 2040. Unlike fiat currency, BTC won’t be printed away to nothing. As long as people still believe in it, it will have some value.
The post 3 Top Bitcoin Plays for the Next Bull Market appeared first on The Motley Fool Canada.
Fool contributor Andrew Button has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
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