Should you invest $1,000 in Canadian Natural Resources right now?

Before you buy stock in Canadian Natural Resources, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Canadian Natural Resources wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,345.77!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*.

See the Top Stocks * Returns as of 4/21/25

Is Bitcoin in a Bubble? Now You Can Bet Against it

If you believe Bitcoin is a bubble, the Horizons BetaPro Inverse Bitcoin ETF (TSX:BITI) allows you to bet against it.

| More on:

Over the past week, Bitcoin’s value has dropped 12% from $79,000 to roughly $70,000 today. Plenty of Bitcoin holders are worried, while the skeptics seem vindicated. Some believe the “Bitcoin bubble” is finally about to pop. 

Personally, I’m a Bitcoin bull. I’ve been holding it since late 2018. However, I’ve seen previous boom/bust cycles play out. On its path to global mainstream adoption, Bitcoin is likely to suffer significant drawdowns along the way. In 2021, investors may have to brace for yet another 2018-style correction in the crypto world. 

If you’re worried about the correction or skeptical about the whole space, there’s now a way for you to bet against the price of Bitcoin through an exchange-traded fund (ETF). 

Inverse Bitcoin ETF

Horizons BetaPro Inverse Bitcoin ETF (TSX:BITI) was listed in Toronto last week. As the name suggests, an “inverse” ETF offers the opposite of the daily price movements of a stock or commodity. So, if a stock rises 1%, the inverse ETF drops 1%. Similarly, if the stock drops 1%, the ETF rises 1%.  

As far as I can tell, this is the world’s first inverse ETF for crypto. BITI was listed at the perfect time, it seems. The ETF is up 12% over the past week, as Bitcoin declined 12% over the same period. For short-sellers and Bitcoin skeptics, this is the perfect tool. 

It’s better than “shorting” or betting against Bitcoin directly. That’s because an inverse ETF caps your potential losses to 100%. In other words, a short bet could have infinite risk, but you can only lose whatever you pay for an inverse ETF. 

I believe the tool could also be useful for conservative Bitcoin investors. It could help you limit the downside if the crypto market has another bust cycle like it did in 2018. It could effectively offset losses in your portfolio. 

But should you expect losses over the long term?

Bitcoin bubble predictions

The Bitcoin bubble has been talked about ever since it was launched. Bitcoin’s value has been remarkably volatile over the past 12 years. But it’s worth noting that its volatility has reduced in magnitude over time. 

In the 2013 bust cycle, the crypto lost over 90% of its value in a few months. In the 2017-2018 boom/bust cycle the maximum drawdowns were between 30% to 40%. Over the past year, the biggest drawdown has been around 25% (January 8-25). Over time, Bitcoin seems to be getting more robust. 

There’s a reason for this. Large players with deep pockets and plenty of patience have adopted the cryptocurrency in increasing numbers. Family offices, tech billionaires like Peter Thiel and tech companies like Square have added crypto to their balance sheet. These investors have much longer time horizons and are not easily perturbed by drawdowns. 

As institutional and wealthy investors add Bitcoin to their portfolio permanently, the asset should become much more stable. Over the next decade, the market should mature to a stage where BTC’s volatility is comparable to gold. 

Bottom line

You can now bet against Bitcoin. If you expect a correction in the near term, maybe you should. But over the longer term, it’s probably not the best idea. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Vishesh Raisinghani has no position in any of the stocks mentioned. Tom Gardner owns shares of Square. The Motley Fool owns shares of and recommends Square.

More on Tech Stocks

Investor wonders if it's safe to buy stocks now
Tech Stocks

Where Will BlackBerry Be in 4 Years?

With fresh partnerships and a tighter focus, BlackBerry is trying to lay the foundation for long-term growth.

Read more »

Start line on the highway
Tech Stocks

The Smartest Canadian Stock to Buy With $10,000 Right Now

Investors interested in tech can consider Constellation Software.

Read more »

Investor reading the newspaper
Tech Stocks

Dip Buyers Could Win Big: The Best Canadian Stocks to Buy Now

Canadian stocks have some big winners, and these three are a prime choice while shares are down.

Read more »

Data center servers IT workers
Dividend Stocks

If I Could Buy and Hold a Single Canadian Stock, This Would Be It

If you want a Canadian stock that's due for even more growth, this one is an easy "yes."

Read more »

Abstract Human Skull representing AI
Dividend Stocks

1 Practically Perfect Canadian Stock Down 26% to Buy Now and Hold for Life!

This Canadian stock continues to be undervalued for investors wanting in on a solid, long-term tech stock.

Read more »

how to save money
Tech Stocks

Where Will Shopify Stock Be in 2 Years?

Down 40% from all-time highs, Shopify is a TSX tech stock that trades at a discount to consensus price targets…

Read more »

A family watches tv using Roku at home.
Tech Stocks

1 Magnificent Canadian Stock Down 57% to Buy and Hold Forever

Down over 50% from all-time highs, Vecima Networks is a TSX tech stock trading at a sizeable discount in May…

Read more »

A bull and bear face off.
Tech Stocks

How to Invest $50,000 of TFSA Cash in 2025

The market sell-off in the last two months amid fear of tariffs has created an opportunity to invest your cash…

Read more »