How to Trade the Potential for $150,000 Bitcoin

Oct 31, 2023
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Bitcoin could test $150,000 by 2025.

That’s according to analysts at Bernstein, who are also optimistic about a Bitcoin ETF being approved by early 2024. “Bernstein also expects that ETF approval would shift up to 10% of bitcoin’s circulating supply towards ETFs. The approval would allow conventional investors to get bitcoin exposure directly from their investment portfolios,” as noted by CNBC.

Even better, “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.”

If that’s the case, investors may want to invest in mining stocks, such as Marathon Digital (MARA) and Riot Platforms (RIOT). After all, the higher Bitcoin goes, the higher the miners go.

Another way to trade Bitcoin upside is with a stock like MicroStrategy (MSTR). 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.

Or, look at an ETF, such as 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 mimics the price of BTC 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.”