Invest in Bitcoin Without Purchasing Bitcoin

Gemini Mastercard (source:gemini.com)

With extensive experience as an electrical/software/coding engineer along with having a diverse financial background, Thomas Wettermann’s areas of interest include Machine Learning (ML), artificial intelligence (AI), and Financial Technology (FinTech). For the past few years, Thomas Wettermann has focused on the underlying technologies that support and promote all phases of cryptocurrency, Web 3.0, and metaverse ecosystems.

Investing in cryptocurrencies can be complex and challenging. Cryptocurrencies must be purchased through crypto exchanges and they must be held or stored in either cold or hot storage.

As such, retail investors interested in seeking crypto investment exposure often will choose alternative investment vehicles that do not require the purchase or custody of cryptocurrencies. There are several such alternative investment vehicles.

Bitcoin ETFs

The Securities and Exchange Commission (SEC) recently approved a Bitcoin based-futures ETF. Bitcoin futures are financial contracts that require a buyer and a seller to transact Bitcoin at a predetermined future date and a predetermined price. The buyer and the seller must execute this financial contract at the set price, regardless of the current Bitcoin market price at the time that the contract expires. 

For example, with the ProShares ETF (BITO), investors gain exposure to returns of Bitcoin simply by buying an ETF by way of a brokerage account.

Cryptocurrency Credit Cards

Another way to indirectly invest in digital currencies is to use a “crypto” bearing credit card.

With these cards, a purchaser can earn a small amount of crypto every time a purchase is made with the card. Popular crypto credit cards include: 

 

- BlockFi 

- SoFi Credit Card 

- Brex Card 

- Venmo Credit Card 

- Gemini Credit Card - Mastercard

Conclusion

Investors seeking crypto investment exposure without its related purchasing and custody challenges have a number of options. These options reduce some of the challenges of holding or maintaining custody of these digital assets. However, before deciding to invest, purchase, and/or trade cryptocurrency, investors should carefully consider their investment objectives, level of experience, adversity to risk, and volatilities. Therefore, with any type of crypto investment, it is always best to investigate before investing. As they say in crypto, DYOR.

All the views expressed on this site are those of Thomas Wettermann and do not represent the opinions of any entity with which Thomas Wettermann has been, is currently, or will be affiliated.

Trading digital financial assets such as cryptocurrencies can carry a high level of risk, and may not be suitable for all investors. Before deciding to invest, purchase, and/or trade cryptocurrency you should carefully consider your investment objectives, level of experience, adversity to risk, and volatilities. The possibility exists that you may sustain a loss of some or all of your initial investment; therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with cryptocurrency trading, and seek advice from a qualified and independent financial advisor.

Thomas Wettermann is not an independent financial advisor. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as a general market commentary of Thomas Wettermann and does not constitute investment advice. Thomas Wettermann will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. All opinions expressed on this site are owned by Thomas Wettermann and should never be considered as advice in any form.