With Bitcoin’s second Bull Run quite a few stocks are tethered to its scarcity binge and institutional uptake. Without going into details, let’s list some of them for the benefit of all retail investors:
Note that many of these stocks are extremely buyer beware (BBW). Current Bitcoin price is $26,626 at time of writing. While some of these have already spiked, others may still be good investments or trades especially before Libra’s stablecoin launches in early 2021.
- RIOT – $15.43
- QETH.U (TSX) – $12.71
- GLXY – $9.29
- SI – $63.57
- CAN – $3.73
- MGI – $5.97
- BTBT – $5.79
- HUT.TO – (TSX) – $3.27
- SQ – $228 (via its Cash App)
- GBTC – $27.35
- ETHE – $16.20
- BITCF – $0.07 (OTC)
- BTSC – $0.018 (OTC)
While owning crypto before it’s fully regulated might not be the best idea, investing in stocks tethered to Bitcoin’s rise seems like a safer way to invest in the volatility in the digital assets sector. In particular the Ether Fund as an ETF (QETH.U) makes sense if it wasn’t already overvalued.
Bitcoin could go up to $40,000 or it could go back to $8,000, nobody really knows for sure. But with the added liquidity due to the Fed stimulus, it’s doubtful it’s going back down in the next few months. The majority of buyers now for Bitcoin are the ones who made a lot of money in stocks in 2020 already, so thus the pyramid scheme will just continue indefinitely where even Square and PayPal are tethered now to Bitcoin’s rise.
When the best FinTech players are integrating blockchain and allowing crypto you know Bitcoin has gone mainstream. It only really took a decade.
Like the EV bubble, the majority of these Bitcoin related stocks are good trades, not decent holds. Do your own due diligence on the above names. SPACs will continue to be some of the most volatile related stocks in 2021 as companies rush to IPO in the fastest way possible to make the most of the bull market of the “recovery”.
It’s the age of the whales for how artificial Bitcoin scarcity and BTC manipulation is occurring and is becoming a fast track (like SPACs) for the rich to get richer faster.
Blockchain stocks are story driven for the most part so can have incredible volatility, something traders look for in the market. With EV, SPAC and ESG movements (think GenZ investors), crypto stocks are taking off as more $ is flooding the markets as global shutdowns keep people at home longer.
The funny part of the Bitcoin rally is it’s only up around 250% which compared to Tesla or other related stocks isn’t at all that impressive.