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With the recent launch of new crypto exchange-tradedfunds (ETFs), it's never been easier to buy Bitcoin (CRYPTO: BTC) for your portfolio. Bitcoin's annualized return was 230% per year. That trounced the returns of high-growth tech stocks, which were up 20% per year. Currencies backed by precious metals (e.g.,
Bitcoin (CRYPTO: BTC) has received a lot of attention lately, mainly due to the approval by the Securities and Exchange Commission and the subsequent launch by major asset managers of spot exchange-tradedfunds (ETFs). I expect its return to be much higher than that, though. Zooming out, it's a similar story.
A look at the encrypted ledger The allure of Bitcoin investments has always been twofold: the potential for significant returns and its suggested role as digital gold. There are Bitcoin-based exchange-tradedfunds now, and the easy access to this user-friendly investment method could change the game in the long run.
To put the gains in context, the S&P 500 (SNPINDEX: ^GSPC) market index showed a total return of 49% over the same period: Where to invest $1,000 right now? With the introduction of exchange-tradedfunds (ETFs) based on spot Bitcoin prices, the fourth halving of Bitcoin mining rewards, and the introduction of a more crypto-friendly U.S.
High-risk, high-reward investments like Bitcoin can provide more generous returns than buying low-rate debt papers. The recent introduction of exchange-tradedfunds (ETFs) based on spot Bitcoin prices has made the crypto asset available to whole new types of investors. Image source: Getty Images.
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