Top Ways to Trade a Potential Bitcoin Boom

Oct 23, 2023

Bitcoin is bouncing back strong.

In fact, the cryptocurrency last traded at $30,017, and could test $35,000 next. From here, some firms say BTC could see $200,000 at some point.

All in hopes we could soon see a Bitcoin ETF approved by the US SEC.

Helping, according to

“Steven Schoenfeld, former head of International Equity Product Strategy at Barclays Global Investors (now Blackrock), expects the U.S. Securities and Exchange Commission (SEC) to approve all spot bitcoin exchange-traded fund (ETF) applications in three to six months. He also anticipates that the greenlighting of spot bitcoin and Ethereum ETFs has the potential to inject between $150 billion and $200 billion of capital into these investment products.”

Not only would approval send BTC to higher highs, it could have a major impact on companies that own a significant amount of Bitcoin and even mining stocks.

Look at the ProShares Bitcoin Strategy ETF (BITO). for example.

If you believe the value of BTC will push higher, you can invest in the Pro Shares Bitcoin Strategy ETF (BITO). With an expense ratio of 0.95%, the ETF tracks the performance of spot Bitcoin.

This one mimics the price of Bitcoin as closely as possible without investing in the cryptocurrency itself. As noted by Money, “Like all crypto ETFs, part of the allure of BITO is that investors don’t need to deal with cryptocurrency wallets and private keys but can instead invest through a broker they already use.”

Or, look at MicroStrategy (MSTR).

Even at $348, it’s attractive.

For one, after dropping from about $480 to a low of $307, the MSTR stock is starting to pivot higher again. Two, it’s pivoting from over-extensions on RSI, MACD, and Williams’ %R. And three, with Bitcoin showing signs of rebounding, the company just increased its stake in BTC to $4.68 billion, which could boost the MSTR stock even more.

There are also mining stocks, like Marathon Digital (MARA).

When Bitcoin moves, miners typically follow. Better, if a spot Bitcoin ETF is approved, not only would BTC explode, but miners could, too.

Better, MARA just produced 1,242 bitcoins in September, up 16% from last month and 245% year over year. MARA also increased its hash rate by 20% on a monthly basis to 15.8 EH/s. Total bitcoin holdings equaled 13,726, an increase of 29% Y/Y.

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