What to know about crypto investing as regulators weigh the first spot bitcoin exchange-traded funds
The price of bitcoin topped $30,000 this week as investors grew bullish on the potential for spot bitcoin exchange-traded funds and other big names entering the digital currency space.
However, financial advisors urge investors to do their own research and understand their risk tolerance before diving in.
Bitcoin has rallied amid news about possible spot bitcoin exchange-traded funds and other big names entering the digital currency space — and financial experts have tips for investors who want a piece of the action.
The price of bitcoin topped $30,000 on Wednesday as traders grew bullish about spot bitcoin ETF applications from companies like BlackRock, WisdomTree and Valkyrie. Bitcoin has surged by more than 80% in 2023 but is still more than 50% below its all-time high in November 2021.
U.S. investors currently have access to bitcoin futures ETFs, which invest in bitcoin futures contracts, or agreements to buy or sell the asset later for an agreed-upon price. The long-awaited bitcoin spot ETF, however, would invest in the digital currency directly.
I think the spot bitcoin ETF is a watershed moment for bitcoin,” said Douglas Boneparth, a New York-based certified financial planner and president of Bone Fide Wealth. He is a member of CNBC’s Financial Advisor Council.
“It’s a very serious statement to see BlackRock submit that application,” he said, and many crypto advocates believe it’s the beeline for a bitcoin spot ETF product.
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