There are two substantial catalysts ahead for Bitcoin.
For one, according to CoinDesk.com, “May 15 marks the deadline for institutional investment managers to file form 13-F with the Securities and Exchange Commission. If more firms are shown to have purchased the newly approved spot bitcoin exchange-traded funds during the first quarter, this will show bitcoin has gained further institutional acceptance.”
The other potential catalyst could be the rejection of an Ether ETF.
“This is significant because while Ethereum’s fate may remain up in the air until 2025 or longer, we believe there’s a substantial amount of capital waiting for a digital winner to be declared; to the extent Bitcoin proves to be that winner, the incremental demand would likely be felt even more acutely given the recent bitcoin halving,” TD Cowen analyst Lance Vitanza added.
If these turn out to be strong catalysts, investors may want to keep an eye on three trade ideas.
Marathon Digital (MARA)
Recent weakness in Marathon Digital (MARA) is an opportunity.
For one, when Bitcoin pushes higher, Marathon Digital typically goes along for the ride. Two, it’s still successfully mining BTC, producing 850 BTC in April, a 21% jump year over year.
“With capacity in Ellendale coming back online and improvements made at other sites, we increased our average operational hash rate 15% in April to 21.1 exahash and increased our bitcoin production 21% to 850 bitcoin,” said CEO Fred Thiel.
MicroStrategy (MSTR)
MicroStrategy (MSTR) is another great way to trade Bitcoin upside. That’s because MSTR now owns 214,000 BTC worth billions of dollars.
With Bitcoin now up to $63,751.30, it’s worth $13.6 billion to MSTR.
The ProShares Bitcoin Strategy ETF (BITO)
With an expense ratio of 0.95%, the BITO ETF tracks the performance of spot Bitcoin, and is the world’s largest and most actively traded cryptocurrency ETF, according to ProShares.
BITO is mimicking 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.”
