People Are Talking About Bitcoin Again, but I’m Buying This Stock Instead

Bitcoin passed the US$50,000 mark, the highest it’s been since December 2021, but if you think it’s headed to US$100K, buyer beware.

| More on:

Cryptocurrency bears, we hardly knew ye.

After two years of thinking Bitcoin (CRYPTO:BTC) was going to be dead and buried, the price of Bitcoin surged over US$50,000 this week. This marked the highest level in over two years. The cryptocurrency hit its highest level at US$50,334 on Monday, the highest level since December 2021.

But should you buy now? In short, nah. Instead, there is another investment option to consider instead.

What happened

First off, let’s certainly state that the US$50,000 mark is a significant milestone for Bitcoin. The price has risen steadily over the last while, up 17% year to date as of writing. This has continued to put it at the top spot among cryptocurrencies, and that spot could only grow stronger.

That being said, the coin is still far below all-time highs. And those that thought it would reach US$100,000 were sadly mistaken back in 2021. Even so, spot-market demand will likely continue to see a spike in trading volume. And this comes down to one thing – exchange-traded funds (ETF).

Why ETFs

The key is that the introduction of ETFs with a focus on cryptocurrency has seen a large inflow of investments. And as the price only climbs higher, every type of investor has the opportunity to get in on the climbing spot price. Net inflows to spot-Bitcoin ETFs reached US$1.1 billion over the past week, and US$2.8 billion since the launch of these ETFs.

And it’s not just Bitcoin. Other ETFs and cryptocurrencies have seen their prices climb in response to the rise in Bitcoin. What’s more, there continues to be a relaxing monetary policy in China. This has further led to more asset purchases, especially in Bitcoin and other cryptocurrencies, including ETFs.

Yet, here’s the thing. These ETFs are only new in the United States. Here in Canada, they’ve been on the market a lot longer. So before you go loading up on some of those new ETFs, there are far safer and more stable and diversified options to consider here at home.

1 ETF to consider

If you want exposure to Bitcoin, then there are certainly ETFs that focus solely on the cryptocurrency. However, if you’re a bit more worried about the spot price of Bitcoin and other cryptos, I would understand that as well. Which is why it might be a good idea to not only get into crypto, but also investments supporting the crypto market’s growth.

If you’re looking at investing in cryptocurrency and all that supports it, I would consider investing in the ETF Horizons Big Data & Hardware Index ETF (TSX:HBGD). This ETF invests in blockchain companies, mining companies, data centres, and more.

Shares of the ETF are up 56% over the last year, though down 13% year to date. However, should we continue to see momentum in the cryptocurrency space, this could turn around in the near future. So sure, cryptocurrency is great, but it’s still risky as well. Therefore, getting into these companies that support the overall crypto market’s growth may certainly offer more opportunity. And a lot more stability than Bitcoin.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Bitcoin. The Motley Fool has a disclosure policy.

More on Tech Stocks

Canadian Dollars bills
Dividend Stocks

2 Incredibly Cheap Canadian Growth Stocks to Buy Before It’s Too Late

Buying cheap stocks needs patience and a long-term investment approach. Only then can they give you extraordinary returns.

Read more »

dividend growth for passive income
Tech Stocks

2 Canadian Growth Stocks Set to Skyrocket in the Next 12 Months

There are some great growth stocks out there for investors to consider, but of them all these two look like…

Read more »

A small flower grows out of a concrete crack.
Tech Stocks

Got $3,000? 2 Monster Growth Stocks to Buy Right Now Without Hesitation 

Here is a method to identify monster growth stocks in which you can invest $3,000 and let your money grow…

Read more »

hand stacks coins
Tech Stocks

2 Stocks That Could Turn $100,000 Into $1 Million

When it comes to winning growth stocks, these two have made millionaires time and again.

Read more »

AI microchip
Tech Stocks

2 Canadian AI Stocks Poised for Significant Gains

If you are looking to ride a decisive bull market phase from the beginning, discounted AI stocks in Canada might…

Read more »

Woman in private jet airplane
Tech Stocks

Could This Undervalued Canadian Stock Be a Millionaire-Maker? 

Futuristic growth stocks can be your ticket to millionaire status.

Read more »

Canada Day fireworks over two Adirondack chairs on the wooden dock in Ontario, Canada
Tech Stocks

Best Tech Stocks for Canadian Investors in the New Year

Three tech stocks are the best options for Canadians investing in the high-growth sector.

Read more »

doctor uses telehealth
Tech Stocks

What to Know About Canadian Small-Cap Stocks for 2025

Small cap stocks are a great way to experience outsized gains. Here is what you need to know about small…

Read more »