As the Bitcoin price dances in the $60,000s, investors are reminded of an effectively inherent element – volatility. Now that Bitcoin has become mainstream, investors and traders have more ways than ever to gain exposure to this digital currency. They are no longer limited to buying and holding in dedicated crypto wallets or exchanges, thanks to a combination of regulatory tailwinds and tech innovation that has opened up the world of crypto directly within brokerage accounts.
While many people are focusing on Spot Bitcoin ETFs, one of the most interesting ways to capitalize on this opportunity includes listed companies that are piling Bitcoin onto their balance sheets, such as MicroStrategy (NASDAQ:MSTR).
The company’s strategic decision to invest heavily in Bitcoin ties its stock performance closely to the digital currency’s price swings. As a result, trading in MicroStrategy shares effectively becomes a play on Bitcoin’s infamous volatility. This has particularly appealed to traders who seek exposure to Bitcoin’s potential upsides and inherent risks, while also leveraging the liquidity and regulatory framework of a NASDAQ-listed stock. MicroStrategy’s own implied volatility is a potentially attractive feature for those looking to benefit from rapid price changes in the crypto market, magnified by the company’s significant Bitcoin holdings. With an average …
Full story available on Benzinga.com