The world's most popular cryptocurrency, Bitcoin, seems to be everywhere right now, and the frenzy around it is continually growing. Its rise this year has piqued the curiosity of everyone from beginners to professionals, especially after its price doubled. The common method for investing in Bitcoin is to buy the currency itself. However, there are many reasons why individuals may choose not to purchase Bitcoin. They might not know anything about it but still want to gain from its profits, or they may know a lot but avoid it due to its high price volatility. Alternatively, they might already own Bitcoin and wish to explore broader cryptocurrency investments.
There are several ways to invest in Bitcoin without buying it, with the first being investing in exchange-traded funds (ETFs). While ETFs tracking Bitcoin prices have been available earlier in countries like Canada and Europe, it has been different in the United States, where financial authorities previously banned these funds. However, this changed in October when the first Bitcoin-linked ETFs were allowed to launch. Experts hope that one day, funds will be able to invest directly in Bitcoin, with over 12 ETF issuers expressing interest, although the U.S. Securities and Exchange Commission has yet to allow this, according to Bloomberg.
### Buying Bitcoin-Related Stocks
Companies have management structures that are often more adept at investing than average investors, and some prefer to invest in Bitcoin indirectly. An example is Coinbase Global, a cryptocurrency platform, as most of its revenue comes from the commissions it charges users for buying cryptocurrencies. The performance of this company's stock is linked to Bitcoin's performance. The company stated in a disclosure to the U.S. Securities and Exchange Commission, "Our net revenue is significantly dependent on cryptocurrency asset prices and the volume of transactions on the platform."
Moreover, investors can focus on companies that bet on Bitcoin's rise and hold it, such as Tesla, which has digital assets worth $1.26 billion, according to its latest financial statements. Other listed companies with Bitcoin investments include MicroStrategy, which holds around 114,042 Bitcoins, alongside Galaxy Digital. However, before taking this path to benefit from Bitcoin through investing in these companies' stocks, one should assess the company's status and the sector it operates in.
### Equity Investment Funds
There are many ETFs that include stock from companies that deal with Bitcoin in one way or another. An example is the BITQ fund, which encompasses stocks like Galaxy Digital, Coinbase, and MicroStrategy.
### Investing in Technology
Bitcoin uses a blockchain system to complete transactions between different parties. Some individuals perform complex calculations to transfer the currency from one party to another and are ultimately rewarded with Bitcoin. This opens the door for Bitcoin mining companies, which use powerful computers to generate Bitcoin from scratch.
### The Old School Approach
Before the advent of Bitcoin investment funds, Trust funds were the primary option for anyone wishing to invest indirectly in Bitcoin. The most famous of these funds is the Grayscale Bitcoin Trust, which was launched in 2013.
