The cryptocurrency market has been trending higher this year, following massive losses in 2022. Traders and investors alike are looking at improving conditions. The biggest potential improvement is better regulatory clarity.
One way that regulators could improve things is by approving a bitcoin spot price ETF. That would make it easy for investors to allocate some capital to bitcoin with their existing investment accounts. Over a dozen proposed ETFs are before regulators. Rumors of approval tend to move crypto prices higher.
That’s what happened on Monday. While the most recent rumors were dispelled, investors see it only as a matter of time before a bitcoin ETF is approved and prices rise.
One easy way to invest in that trend is by investing with companies that already have exposure to bitcoin. MicroStrategy (MSTR) is the most correlated to bitcoin, as they’ve bought billions of dollars’ worth on their balance sheet.
Action to take: Investors looking for a way to get exposure to bitcoin with a traditional brokerage account now can buy shares of MicroStrategy. The company is correlated to moves in bitcoin, and could be worth far more following an ETF approval.
For traders, the April 2024 $500 calls, last going for about $20.00, could see a jump higher from an ETF approval in the starting months of next year, when regulators are likely to make an announcement.
Disclosure: The author of this article has a position in the company mentioned here, and may further trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.