Bitcoin just broke another record high.
Its latest run-up has been fuelled by fresh institutional interest and a pro-crypto stance from President-elect Donald Trump.
“There’s still a lot of cash on the sidelines,” analysts note in the “Connecting the Dots” newsletter, forecasting that interest rate cuts and post-election certainty will keep Bitcoin and related equities “pumping into year-end.”
Stocks and funds linked to cryptocurrencies are already on the rise, too, as investors look to add exposure to their portfolios.
Here are a few alternative ways investors are getting in on the action.
Bitcoin ETFs
Since gaining US approval in January, spot Bitcoin ETFs have lured some $76 billion in assets, according to Bernstein.
“There are no excuses now” for investors to avoid Bitcoin exposure, says Greg Cipolaro, global head of research at NYDIG.
In the days following Trump’s election, inflows into Bitcoin ETFs surged by $2.3 billion.
MicroStrategy
MicroStrategy is the largest corporate holder of Bitcoin, owning 1.2% of all Bitcoin on the market.
At current prices, this is almost $21 billion in Bitcoin.
Its stock, MSTR, effectively mirrors Bitcoin’s performance, making it a popular choice for investors seeking indirect exposure to the asset.
MSTR is trading at $300 in pre-market, marking an increase of about 30% since Trump’s election.
Unlike entities like Coinbase, which hold Bitcoin on behalf of clients, MicroStrategy’s Bitcoin is part of its corporate treasury.
The company recently revealed an ambitious new plan to raise $42 billion — split evenly between debt and equity — to buy even more Bitcoin.
Bitcoin miners
Bitcoin mining companies are already enjoying the breathing room as prices gain footing above $82,000.
Bernstein recently upgraded major miners like Riot Platforms and CleanSpark, noting that they’re “finally in the money” as the price of Bitcoin now much higher than production costs.
To produce one Bitcoin, these miners pay between $40,000 and $60,000 for electricity, hardware, and other overhead costs.
Riot Platforms is up over 55%, while CleanSpark has added 34% in the past five days. Marathon Digital has gained more than 41% in the same timeframe.
Trump’s presidential win could make these US-based crypto miners even more profitable down the line.
During his campaign, Trump promised to position the US as the world’s crypto capital, pledging to make “so much electricity” available to Bitcoin miners.
He criticised the Biden administration for letting China and Russia dominate the sector, arguing that the US should lead in Bitcoin mining.
Exchange stocks
Crypto exchanges Coinbase and Robinhood are enjoying a strong rally alongside Bitcoin’s surge.
Coinbase stock is up 16% pre-market to $315, just 15% below its 2021 bull run peak of $365.
Robinhood shares have risen 10% to nearly $34 — levels not seen since November 2021′s crypto highs.
Coinbase offers over 200 tokens, while Robinhood, which currently lists around 15, is expected to list even more if regulations ease.
With crypto forming around 19% of Robinhood’s total transaction revenue this year, Bernstein predicts this could reach 35% by 2025, positioning Robinhood as a “crypto index exposure” for investors.
Crypto market movers
Bitcoin is up 2.5% over the past 24 hours to trade at $81,700.
Ethereum is down 1.4% to trade at $3,155.
What we are reading
Meet the Robinhood exec tipped to be Trump’s top SEC pick: ‘I’d go in with a pretty lengthy list’ — DL News
How to capitalize on memecoins — Milk Road
Sales at Trump-backed World Liberty Financial lag market rally — DL News
How Democrats Failed to Deliver on Crypto’s Promise in the 2024 Elections — Unchained
Solana Memecoin ACT Rockets 1,720% on Binance Listing as Altcoin Market Heats Up — CoinDesk
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
