Cathie Wood’s $560,000 Bitcoin call is now a 988 percent upside play — here’s how to profit on the cryptocurrency’s drop.
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Bitcoin is so volatile that if you want to “buy the drop,” you’ll almost certainly find it.
For example, after reaching a high of almost $68,000 in early November, the price of the world’s largest cryptocurrency was unable to sustain its upward trend. In fact, it fell below $50,000 over the weekend.
Bitcoin is currently trading at $51,444 and has declined 18.7 percent in the last month. Could this be a chance for investors who have previously sat on the sidelines?
It all depends on how far you think Bitcoin can go. Cathie Wood of Ark Invest, for example, told Barron’s last month that if “institutional investors go into Bitcoin and contribute 5% of their portfolios,” the cryptocurrency’s price will skyrocket to $560,000 by 2026.
Based on the current state of Bitcoin, her newest forecast forecasts a 988 percent increase. That may seem far-fetched, but recall that Wood was correct when she forecast a 1,200 percent increase in Tesla.
So here are a few methods to participate in the crypto boom, including choices with low entry fees and no commissions.
Bitcoin ETFs
Wood is introducing a new option to invest in Bitcoin. Ark Next Generation Internet ETF revised its prospectus in September to offer exposure to Bitcoin via Canadian ETFs.
Although the first bitcoin ETF on the New York Stock Exchange began trading in October, Canada has been ahead of the US for some time. This year saw the introduction of many Bitcoin ETFs in Canada, including the Purpose Bitcoin ETF, 3iQ CoinShares Bitcoin ETF, CI Galaxy Bitcoin ETF, and Evolve Bitcoin ETF.
The launch of the ProShare Bitcoin Strategy ETF in the United States was undoubtedly a significant driver for Bitcoin’s climb in October. The fund invests in bitcoin futures contracts on the Chicago Mercantile Exchange.
Investors who wish to gain exposure to the cryptocurrency market may do so through these ETFs, but you can also buy Bitcoin directly. Some investment programs allow you to acquire both cryptocurrencies and ETFs without paying a fee.
