Bitcoin ETFs

letters Gold ETF and Bitcoin on white keyboard
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Wood herself is offering a new way to invest in cryptocurrency. In September, Ark Next Generation Internet ETF tweaked its prospectus to include exposure to Bitcoin via Canadian ETFs.

The first bitcoin ETF on the New York Stock Exchange started trading last month, but Canada has been ahead of the U.S. for a while. Several Bitcoin ETFs launched in Canada this year, including Purpose Bitcoin ETF, 3iQ CoinShares Bitcoin ETF, CI Galaxy Bitcoin ETF and Evolve Bitcoin ETF.

In the U.S., the debut of the ProShare Bitcoin Strategy ETF was arguably a major catalyst behind Bitcoin’s rally in October. The fund holds bitcoin futures contracts that trade on the Chicago Mercantile Exchange.

Investors who want exposure to the crypto market can invest in these ETFs, but you can also buy Bitcoin directly. Some investing apps allow you to buy both cryptocurrencies and ETFs commission-free.

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Cryptocurrency stocks

MicroStrategy logo with bitcoin
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Companies that have tied themselves to the crypto market provide another way for investors to benefit from the crypto rally.

For instance, enterprise software company MicroStrategy purchased 9,000 bitcoins in Q3. That brings its total bitcoin count to 114,042, a stockpile worth roughly $6.7 billion.

Because of MicroStrategy’s huge Bitcoin stake, some investors have used it as a proxy for investing in the cryptocurrency. In the past, rallies in Bitcoin usually led to similar moves in MicroStrategy’s share price.

Then there’s Riot Blockchain, which mines Bitcoin and hosts Bitcoin mining equipment for institutional clients. Thanks to soaring Bitcoin prices, Riot shares have returned a staggering 492% over the past 12 months.

Investors can also check out Coinbase, which runs the largest cryptocurrency exchange in the U.S. The company’s share price fell below its IPO price of $250 during the summer, but the pop in cryptocurrencies last month has brought it back to over $300.

And while crypto stocks can be pricey, you can get a piece of these companies using a popular app that allows you to buy fractions of shares with as much money as you’re willing to spend.

A 'finer' alternative?

Andy Warhol painting in gallery
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At the end of the day, cryptocurrencies are volatile. Not everyone feels comfortable holding an asset that seems to make wild swings 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: fine art.

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

Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultra-rich, like Wood. But with a new investing platform, you can invest in iconic artworks, too, just like Jeff Bezos and Bill Gates do.

Fine art as an investment

Stocks can be volatile, cryptos make big swings to either side, and even gold is not immune to the market’s ups and downs.

That’s why if you are looking for the ultimate hedge, it could be worthwhile to check out a real, but overlooked asset: fine art.

Contemporary artwork has outperformed the S&P 500 by a commanding 174% over the past 25 years, according to the Citi Global Art Market chart.

And it’s becoming a popular way to diversify because it’s a real physical asset with little correlation to the stock market.

On a scale of -1 to +1, with 0 representing no link at all, Citi found the correlation between contemporary art and the S&P 500 was just 0.12 during the past 25 years.

Earlier this year, Bank of America investment chief Michael Harnett singled out artwork as a sharp way to outperform over the next decade — due largely to the asset’s track record as an inflation hedge.

Investing in art by the likes of Banksy and Andy Warhol used to be an option only for the ultrarich. But with a new investing platform, you can invest in iconic artworks just like Jeff Bezos and Bill Gates do.

About the Author

Jing Pan

Jing Pan

Investment Reporter

Jing is an investment reporter for MoneyWise. Prior to joining the team, he was a research analyst and editor at one of the leading financial publishing companies in North America. An avid advocate of investing for passive income, he wrote a monthly dividend stock newsletter for the better half of the past decade. Jing holds a Master’s Degree in Economics and an Honours Bachelor of Science Degree, both from the University of Toronto.

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