Bitcoin Investment Trust GBTC
Investing in blockchain technology stocks
As blockchain technology continues to mature, there will still be manyopportunities for investors. Blockchain is not a physical asset that can bepurchased, so investors are turning to other means of gaining exposure to thissegment of the tech market. There are a number of options for investing inblockchain technology, including blockchain exchange-traded funds orblockchain stocks.Below are just a few blockchain technology stocks for investors to consider.These are three of the top performing blockchain technology stocks on theNASDAQ and are listed by market cap at the time of publication.
1. Riot Blockchain (NASDAQ:RIOT)
Market cap: US$3.52 billionRiot Blockchain was one of the first pure play blockchain companies on theNASDAQ.This blockchain stock focuses on cryptocurrency mining of bitcoin and thecompany’s stock price has risen right alongside the cryptocurrency markets inrecent years.Since early 2020, Riot has been completely focused on expanding and upgradingits mining capabilities, securing the most energy efficient miners currentlyavailable. “We are at an exciting and critical juncture in our industry, withBitcoin positioned to disrupt the global financial system,” said newlyappointed Riot CEO Jason Les.
3. Marathon Patent Group (NASDAQ:MARA)
Market cap: US$3.18 billionAs with Riot, Marathon Patent Group is one of the first publicly tradedblockchain companies on the NASDAQ. One of the largest Bitcoin miningcompanies in North America, Marathon’s mining fleet continues to grow. InFebruary 2021, the company increased its mining capacity via the purchase ofan additional 4,000 miners, representing a 256 percent increase in itshashrate production. Once installed, Marathon’s mining fleet will consist of6,560 miners producing approximately 688 (petahash per second) PH/s.Don’t forget to follow us @INN_Technology for real-time news updates!Securities Disclosure: I, Melissa Pistilli, hold no direct investment interestin any company mentioned in this article.
Bitcoin Investment Options
1. BTC currencyAs you know, Bitcoin is not a physical form of currency, nor is it a companyor corporation that can go public. So there isn’t exactly a stock for it.However, you can treat the BTC you have as an asset that can be bought andsold, and its value as the bitcoin stock price. The fluctuation in price canbe tracked in the same way you can track any other stock in your portfolio. 2. Bitcoin Investment TrustThere are other ways you can incorporate “bitcoin stock” into your portfolioas well. The Bitcoin Investment Trust is one notable option that operatessimilarly to an exchange-traded fund. It is a trust that owns the coins it isholding, and by buying shares of it, you can essentially bet on bitcoin valuewithout actually owning any of your own (their bitcoins are secured usingXapo, Inc. as storage). 3. Bitcoin FuturesAnother possible attempt at investing in bitcoin’s value without buyingbitcoins is with bitcoin futures. Bitcoin futures allow you to essentially beton the cryptocurrency’s value in the future; if you think the price of BTCwill go up in the future, you could buy a futures contract. Should yourinstinct be right, and the price goes up when the contract expires, you’reowed an equal amount to the gains. Notable places that offer bitcoin futurescontract are the Chicago Board Options Exchange, or CBOE, and financial marketCME Group.Contracts are leveraged in that you’re paying a fraction of bitcoin’s actualprice when you buy futures, giving you a chance to profit off them. However,the contract has an expiration date in the near future. If the price is downwhen it expires, you can’t simply hold and wait to see if it bounces back; youjust lose. 4. Investing in Mining TechnologyThe growth of bitcoin mining as an industry has grown rapidly ever since thefirst BTC was mined nearly a decade ago. More powerful computers and hardwareare required to give miners a better chance of successfully mining, and somecompanies have inadvertently become involved as a result. 5. Investing in BlockchainThe most valuable aspect of bitcoin is the blockchain technology behind it,investing in blockchain is another way of tangentially investing in bitcoinwithout the worrisome volatility. There are many large companies that havebeen developing their own blockchain networks for a variety of purposes thatmay be worth looking into.That doesn’t mean it’s risk-free, though. Blockchain technology is anintriguing development that could disrupt a number of huge industries, but atthe moment, it’s also a fashionable word to throw around.
Best Bitcoin Related Stocks
Check out the following potential bitcoin stocks to invest in:
Microsoft Stock (MSFT)
Microsoft is seeking to build a ‘Blockchain as a Service’ on its Azure cloud,becoming a genuine rival to Amazon when it comes to hosting cloud-based apps.The Azure Blockchain has also been implemented by big names, including NASDAQand AT&T (NYSE: T). Microsoft Azure runs on the Ethereum blockchain, meaningthat it depends on what decisions the Ethereum Foundation makes regarding itscode updates.Microsoft has also linked its blockchain services to several applications,such as Office 365 Outlook and Sharepoint Online, and apps of other companies,including Twitter and salesforce.com.
NVIDIA is one of the biggest graphics processing unit (GPU) manufacturers inthe world. Its products are used in video games graphics as well as in mining,due to its computational performance required for producing Ethereumcryptocurrency.As cryptocurrency and blockchain become more widespread, there will be moreminers engaging in the process of earning coins and tokens. Furthermore,Nvidia’s graphics chips are also designed with enough processing power toassist with artificial intelligence (AI) applications such as the Internet ofThings (IoT) and autonomous vehicles, which will be some of the hottest topicsin the coming years.
MasterCard Stock (MA)
MasterCard is among those companies that have supported blockchain, atechnology with disruptive potential for its sector of business, for a verylong time.MasterCard offered banks Blockchain-based alternative for carrying outtransactions in October 2017, discarding traditional credit cards. Curiouslyenough, MasterCard came to be the second Fortune 500 company to be involved inthe development of decentralized payments, succeeding IBM. However, itsBlockchain does not support cryptocurrencies, only fiat, meaning that it isn’ta Bitcoin stock.
Bitcoin Investment Trust (GBTC)
Bitcoin Investment Trust is an open-ended grantor trust company. It isinvested entirely and only in bitcoin and has a value that is based only onthe price of bitcoin. What this company does is it provides investors with ameans to gain exposure to the price movement of bitcoin without having to buy,store or keep bitcoins safe. Bitcoin Investment Trust is sponsored byGrayscale Investments which is a wholly-owned Digital Currency Groupsubsidiary. The concept is interesting in that each share represents ownershipof 0.1 bitcoins and the value drops gradually over time as the companyexpenses are covered.
Riot Blockchain, Inc. (RIOT)
Founded in July of 2000, this company was designed to provide investmentservices to the blockchain ecosystem. The company website actually referencestheir activity as “a first mover on the NASDAQ focused on blockchaintechnology.” The goal of this group is to revolutionize transactions with asystem that has not been seen before.To add to the unique ecosystem created by Riot, they have also launched theirown Bitcoin mining operation. The company only says that the Bitcoin miningoperation will be the focal point of the expansion plans in place to move thecompany forward in the cryptocurrency world. The main focus of Riot BlockchainInc. is the Bitcoin and Ethereum blockchains which put this group in strongpositioning in the cryptocurrency world.
How to Buy Bitcoin Stocks?
If you are one of those more conservative investors who prefer a traditionaland safer approach, then you might select one of the above-mentionedblockchain stocks to invest in. This type of investing does not require you togo through the lengthy process of purchasing crypto on an exchange, managing awallet or having to worry about the price fluctuations, security, anddocumentation.You can buy stocks on the New York Stock Exchange (NYSE). Of course, you can’tsimply walk onto the floor of the NYSE and fill a shopping cart as you do atthe grocery store. Instead, you must hire a brokerage firm to buy the stock onyour behalf.Different brokers offer different levels of support and advice to theirclients, so it’s important to choose the proper level of support for yourneeds. Once you’ve hired a broker, you will ask him to buy and sell stock foryou whenever you wish to make a transaction.Keep in mind that you’ll pay a commission each time you buy or sell, so that’sanother point to keep in mind when shopping around for brokers and whenfiguring your profits and losses. Each brokerage firm has its own set ofcommission rates.If you want to save money and feel confident about purchasing stock on yourown, consider an online brokerage firm that allows you to open an onlinetrading account. You simply open an account, deposit some money into it andlog in when you wish to buy stock. This service is less expensive, as thebroker buys stock on your behalf but does not analyze it for you or offeradvice; they simply serve as an online bridge between you and the NYSE.Once you decide what top bitcoin stocks you want, tell your broker what stockyou wish to buy and how many shares you would like. When buying, you’ll placea market order or a limit order. While a market order instructs your broker tosimply buy shares of a certain stock, a limit order dictates the price youwant to pay for the shares. * Contracts for Difference (CFDs)If you don’t wish to physically own the above Bitcoin stocks, you can alwayspurchase Contracts for Difference (CFDs) for each instead. CFD brokers such aseToro – the world’s leading social trading community – support stocks andforeign exchange, as well as leading cryptocurrencies. With CFDs, you simplyplace a ‘Buy’ or ‘Sell’ CFD order based on whether you expect the price on astock to rise (Buy) or fall (Sell).
CEB puts the auxiliary crypto ecosystem in the spotlight
Along with the companies directly holding Bitcoin, even firms that are relatedto the cryptocurrency industry in an auxiliary fashion were put in thespotlight as well due to their perceived high correlation with Bitcoin. In theCEB, Riot Blockchain and Nvidia Corporation are given allocations of 15% each.The four mentioned companies account for 68% of the debt instruments’ totalallocation.Riot Blockchain is a cryptocurrency mining company whose stock has been on anabsolute tear since February, showing high correlations with Bitcoin. Inaddition to being related to Bitcoin due to its mining operation, Riot alsoowns 1,175 BTC on its balance sheet, valued at around $68 million, whichaccounts for 1.6% of its overall market capitalization on Nasdaq.Nvidia Corporation is a graphic processing units manufacturer, which is nowalso used in mining proof-of-work cryptocurrencies like BTC and Ether. Therate at which PoW cryptocurrencies are mined is highly dependent on the powerand functionalities of the GPUs being used.The growth of companies such as Riot and Nvidia is directly linked toBitcoin’s growth due to their participation in the cryptocurrency ecosystem.This applies to all the exchanges trading Bitcoin products, to energycompanies that are getting into Bitcoin mining, and even to payment platformslike PayPal that support Bitcoin.The other crypto auxiliary stocks that are a part of JPMorgan’s CEB are PayPalHoldings, Advanced Micro Devices, Taiwan Semiconductor Manufacturing CompanyLimited, Intercontinental Exchange, CME Group, Overstock.com and SilvergateCapital Corporation. All of these companies are related to crypto and Bitcoinin one way or another, right from being part of the mining and energy processto having Bitcoin products listed on their exchange, as is the case with CMEand Bakkt, which is owned by ICE.However, one stock missing from this basket is the Tesla stock. On Feb. 8,Elon Musk’s company bought BTC worth $1.5 billion at the time. This move alonepushed the price of Bitcoin by $3,000 within minutes, showing the impact Muskand Tesla have on the crypto markets. In fact, the CEO’s effect on the cryptomarket is now famously referred to as the “Musk Effect.” Considering all this,it would be obvious to include Tesla’s stock on the CEB. But JPMorgan’s reasonfor excluding Tesla’s stock could be that it feels that Tesla’s stock is“dramatically overvalued.”Even Sam Bankman-Fried, CEO of FTX — a cryptocurrency derivatives exchange —mentioned to Cointelegraph how Tesla had an interesting correlation with BTC:> “TSLA is probably the most interesting: Both are speculative assets; they> have overlapping investor bases; Tesla owns some BTC; and both often move on> Elon Musk’s tweets. MSTR is a more boring example.”