The events of the past couple of weeks have shown exactly why some people have been wary of investing in Bitcoin. One tweet – one word even – from Elon Musk and the cryptocurrency has whipsawed thousands of dollars in either direction without warning.
Thankfully for some investors, there are other ways to make a bet on the future of cryptocurrency.
Maybe you know nothing about Bitcoin, but you’re interested in the rise of cryptocurrencies. Or perhaps you know a lot about Bitcoin – and you don’t want to touch it, cautious about seemingly random price dips. Or you own Bitcoin already, and you’re looking to invest more broadly in the future of cryptocurrencies. The number of ways to get exposure is growing.
This year, the US Securities and Exchange Commission is expected to decide whether to approve exchange-traded funds that track Bitcoin. At the same time, several crypto-related companies have gone public. Meanwhile, some companies are buying so much Bitcoin, their shares are affected by movements in the cryptocurrency’s price.
The expansion of the cryptocurrency financial ecosystem comes as the coins themselves – and the technology behind them – go mainstream. And Bitcoin itself still isn’t offered for purchase in many traditional brokerage accounts.
Here’s a rundown of the alternatives:
Buying traditional stock in a Bitcoin-related company
Companies have structures that might be more familiar to the average investor: executive teams that make decisions and financial results that have to be disclosed. That’s one reason some prefer this route to get indirect exposure to Bitcoin.
“It can be easier for people to get into industries that they already understand and who are adopting these technologies to make them more efficient,” Sweta Bhargav, principal financial adviser at Adviso Wealth in Philadelphia, says. “It can be a better place to start for investors.”
Coinbase Global's direct listing on the Nasdaq last month has been a test of this strategy. Because most of its revenue comes from fees it charges users to deposit and trade funds, the valuations of the crypto exchange fluctuates in close correlation with Bitcoin’s price.
In a filing to the SEC, the company laid it out: “Our net revenue is substantially dependent on the prices of crypto assets and volume of transactions conducted on our platform.”
Alternately, investors could focus on companies that are bullish on Bitcoin and have substantial holdings. Tesla, for example, made a large purchase of more than $1.5 billion. Other public companies that have substantial holdings include MicroStrategy, an enterprise software firm that purchased billions; and Galaxy Digital Holdings, with hundreds of millions.
With companies that do things other than hold Bitcoin, you have to also evaluate their sector and individual product performance.
“The risk-return profile is not exactly the same, as you are also taking a position in the firms themselves and therefore take on exposure to their unique risks,” Michael Kelly of Switchback Financial, says.
Investing in the technology
Bitcoin is a digital currency: Each unit is an encrypted record stored in a public ledger called a blockchain, as you probably know by now. By solving complex mathematical problems to verify transactions of the currency, individuals can be “rewarded” with new Bitcoin.
That opens the door for companies mining Bitcoin, using powerful computers to create units of the digital currency from scratch.
“You don’t have to be a computer geek anymore to mine,” Julius de Kempenaer, senior technical analyst at Stockcharts.com, says. “There are companies who can do it for you.”
Marathon Digital Holdings and Riot Blockchain are two of the largest firms in the sector. On Marathon’s website, the Las Vegas company states that owning a stake “helps you gain exposure to Bitcoin in your portfolio without having to deal with the complications of holding the asset directly”.
The Colorado-based Riot specialises in acquisitions of crypto-related businesses. In April, the company disclosed it was buying North America’s largest Bitcoin mining facility, Whinstone US, in a $651 million cash-and-stock deal.
Trusts
Grayscale Bitcoin Trust has been the go-to place to gain indirect exposure to Bitcoin since it was launched by Grayscale Investments, a US crypto investment firm, in 2013. The trust allows investors to hold the currency without having to create what’s known as a digital wallet, which stores records of crypto transactions.
You don't have to be a computer geek anymore to mine [Bitcoin]
The downside is that Grayscale charges a 2 per cent fee for its management of the fund. “There’s a lot more fees associated with it. If you own Bitcoin directly, you’re not paying any fees to hold it or trading fees for humans to work,” Ryan Cole, a private wealth adviser at Citrine Capital, says.
Moreover, the fund sometimes trades at a discount to the value of Bitcoin it holds.
Coming Up: ETFs
The Bitcoin boom has led to ETF issuers betting we will soon see a fund that tracks the digital coin.
Grayscale Investments says it will turn its Bitcoin trust into an ETF as soon as US regulators allow it. The SEC has yet to approve the structure and several issuers have filed applications in recent weeks after North America’s first Bitcoin ETFs began trading in Canada in February.
Investors argue that a Bitcoin ETF would let them buy and sell the cryptocurrency more easily, and take away the complexities around storage and portfolio integration.
Until then, investors can look at the Amplify Transformational Data Sharing fund, according to Luke Suddards, an analyst for Pepperstone Group. It tracks companies involved in cryptocurrencies and blockchain technology.
“Through this product, you’d be invested in names like PayPal, Square, Visa, listed Bitcoin mining companies and chipmakers such as Nvidia who make the chips used in crypto mining,” Mr Suddards says.
Altcoins
There’s also the option of buying one of the several alternative coins, or altcoins for short, that have been created since Bitcoin launched. Research from exchange platform Binance found that the prices for various currencies tend to be highly correlated, rising and falling together. Litecoin, created in 2011, has outperformed its older rival this year, gaining 178 per cent compared with 87 per cent for Bitcoin. Ethereum, the second-largest digital currency, has risen 440 per cent over the same time period.
Or just buy Bitcoin
It used to be a lot more complicated to own a piece of Bitcoin – either a whole coin or a fraction of one. There were wallets to open, keys to keep track of, and it often times meant dealing with new companies without track records or head offices you could call. Now, several firms – including exchanges such as Coinbase, money transfer apps like CashApp, Venmo or PayPal, brokerages such as Robinhood – have made it easy to buy Bitcoin and other cryptocurrencies, although fees and policies vary.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The specs
BMW M8 Competition Coupe
Engine 4.4-litre twin-turbo V8
Power 625hp at 6,000rpm
Torque 750Nm from 1,800-5,800rpm
Gearbox Eight-speed paddleshift auto
Acceleration 0-100kph in 3.2 sec
Top speed 305kph
Fuel economy, combined 10.6L / 100km
Price from Dh700,000 (estimate)
On sale Jan/Feb 2020
MATCH INFO
Arsenal 1 (Aubameyang 12’) Liverpool 1 (Minamino 73’)
Arsenal win 5-4 on penalties
Man of the Match: Ainsley Maitland-Niles (Arsenal)
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
UAE WARRIORS RESULTS
Featherweight
Azouz Anwar (EGY) beat Marcelo Pontes (BRA)
TKO round 2
Catchweight 90kg
Moustafa Rashid Nada (KSA) beat Imad Al Howayeck (LEB)
Split points decision
Welterweight
Gimbat Ismailov (RUS) beat Mohammed Al Khatib (JOR)
TKO round 1
Flyweight (women)
Lucie Bertaud (FRA) beat Kelig Pinson (BEL)
Unanimous points decision
Lightweight
Alexandru Chitoran (ROU) beat Regelo Enumerables Jr (PHI)
TKO round 1
Catchweight 100kg
Marc Vleiger (NED) beat Mohamed Ali (EGY)
Rear neck choke round 1
Featherweight
James Bishop (NZ) beat Mark Valerio (PHI)
TKO round 2
Welterweight
Abdelghani Saber (EGY) beat Gerson Carvalho (BRA)
TKO round 1
Middleweight
Bakhtiyar Abbasov (AZE) beat Igor Litoshik (BLR)
Unanimous points decision
Bantamweight
Fabio Mello (BRA) beat Mark Alcoba (PHI)
Unanimous points decision
Welterweight
Ahmed Labban (LEB) v Magomedsultan Magomedsultanov (RUS)
TKO round 1
Bantamweight
Trent Girdham (AUS) beat Jayson Margallo (PHI)
TKO round 3
Lightweight
Usman Nurmagomedov (RUS) beat Roman Golovinov (UKR)
TKO round 1
Middleweight
Tarek Suleiman (SYR) beat Steve Kennedy (AUS)
Submission round 2
Lightweight
Dan Moret (USA) v Anton Kuivanen (FIN)
TKO round 2
UAE currency: the story behind the money in your pockets
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Lampedusa: Gateway to Europe
Pietro Bartolo and Lidia Tilotta
Quercus
Mohammed bin Zayed Majlis
Tom Fletcher on 'soft power'
Masters%20of%20the%20Air
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Dark Souls: Remastered
Developer: From Software (remaster by QLOC)
Publisher: Namco Bandai
Price: Dh199
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Killing of Qassem Suleimani
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COMPANY PROFILE
Name: Rain Management
Year started: 2017
Based: Bahrain
Employees: 100-120
Amount raised: $2.5m from BitMex Ventures and Blockwater. Another $6m raised from MEVP, Coinbase, Vision Ventures, CMT, Jimco and DIFC Fintech Fund
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UAE currency: the story behind the money in your pockets
The bio
Job: Coder, website designer and chief executive, Trinet solutions
School: Year 8 pupil at Elite English School in Abu Hail, Deira
Role Models: Mark Zuckerberg and Elon Musk
Dream City: San Francisco
Hometown: Dubai
City of birth: Thiruvilla, Kerala
Difference between fractional ownership and timeshare
Although similar in its appearance, the concept of a fractional title deed is unlike that of a timeshare, which usually involves multiple investors buying “time” in a property whereby the owner has the right to occupation for a specified period of time in any year, as opposed to the actual real estate, said John Peacock, Head of Indirect Tax and Conveyancing, BSA Ahmad Bin Hezeem & Associates, a law firm.
6 UNDERGROUND
Director: Michael Bay
Stars: Ryan Reynolds, Adria Arjona, Dave Franco
2.5 / 5 stars
THE SPECS
Engine: 3.9-litre twin-turbo V8
Transmission: seven-speed dual clutch
Power: 710bhp
Torque: 770Nm
Speed: 0-100km/h 2.9 seconds
Top Speed: 340km/h
Price: Dh1,000,885
On sale: now
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
RESULTS
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More on animal trafficking
European arms
Known EU weapons transfers to Ukraine since the war began: Germany 1,000 anti-tank weapons and 500 Stinger surface-to-air missiles. Luxembourg 100 NLAW anti-tank weapons, jeeps and 15 military tents as well as air transport capacity. Belgium 2,000 machine guns, 3,800 tons of fuel. Netherlands 200 Stinger missiles. Poland 100 mortars, 8 drones, Javelin anti-tank weapons, Grot assault rifles, munitions. Slovakia 12,000 pieces of artillery ammunition, 10 million litres of fuel, 2.4 million litres of aviation fuel and 2 Bozena de-mining systems. Estonia Javelin anti-tank weapons. Latvia Stinger surface to air missiles. Czech Republic machine guns, assault rifles, other light weapons and ammunition worth $8.57 million.
CRICKET%20WORLD%20CUP%20QUALIFIER%2C%20ZIMBABWE%20
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Hotel Data Cloud profile
Date started: June 2016
Founders: Gregor Amon and Kevin Czok
Based: Dubai
Sector: Travel Tech
Size: 10 employees
Funding: $350,000 (Dh1.3 million)
Investors: five angel investors (undisclosed except for Amar Shubar)
UAE rugby in numbers
5 - Year sponsorship deal between Hesco and Jebel Ali Dragons
700 - Dubai Hurricanes had more than 700 playing members last season between their mini and youth, men's and women's teams
Dh600,000 - Dubai Exiles' budget for pitch and court hire next season, for their rugby, netball and cricket teams
Dh1.8m - Dubai Hurricanes' overall budget for next season
Dh2.8m - Dubai Exiles’ overall budget for next season
La Mer lowdown
La Mer beach is open from 10am until midnight, daily, and is located in Jumeirah 1, well after Kite Beach. Some restaurants, like Cupagahwa, are open from 8am for breakfast; most others start at noon. At the time of writing, we noticed that signs for Vicolo, an Italian eatery, and Kaftan, a Turkish restaurant, indicated that these two restaurants will be open soon, most likely this month. Parking is available, as well as a Dh100 all-day valet option or a Dh50 valet service if you’re just stopping by for a few hours.
Zayed Sustainability Prize
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
Oppenheimer
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