Since Bitcoin first appeared way back in 2009 stock traders,investors and institutions have long sought to create a Bitcoin ETF which would allow investors to easily buy into Bitcoin using traditional brokers and online platforms such as Robinhood which has become immensely popular with the Millennial age group and biggest supporters of Bitcoin. Due to strict regulation from overseeing watchdogs involved with approving new ETF’s like the SEC, multiple applications for an ETF have ultimately been denied. The SEC site the extreme volatile nature of the price of Bitcoin and safe custodial keeping of the digital asset being the main factors in the application rejections.
Nevertheless it is possible to invest in crypto and blockchain by purchasing a few listed stocks. I’ll do a quick introduction to the most popular ones.
Riot Blockchain (RIOT)
Currently trading around $3.55 Riot blockchain in the business of mining Bitcoin and investing in blockchain related technologies. This stock’s price movements are very closely correlated to the price movements of Bitcoin
Marathon Patent Group (MARA)
Owning one cryptocurrency facility in Quebec this company solely focuses on the mining of cryptocurrencies that are proof of work based. They are rapidly expanding and the price of this stock closely correlates with the price movements of Bitcoin.
Grayscale Bitcoin Trust (GBTC)
This is a fund that directly buys Bitcoin and stores it for investors. Although very close to a Bitcoin ETF it trades in the OTC market. It also very closely tracks the price of Bitcoin.
This company is listed on the Nasdaq stock market and is involved in the manufacturing of ASIC computers necessary for the mining of proof of work cryptocurrencies. When thinking about gold rushes of the past it is analogous to see this company as the producers of the picks and shovels.
Amplify Transformational Data Sharing ETF (BLOK)
This is an ETF that focuses on investing in companies that are actively employing the use of blockchain technology in the world.
It is possible to invest in blockchain and crypto through the stock market using these stocks. The holy grail of a Bitcoin ETF seems at the moment far off but with the rapidly increasing presence of Bitcoin in the world it is only a matter of time before an ETF finally gets approved.