Bitcoin Price Surpasses $100,000: Experts Predict Significant Growth Ahead

Ark Invest’s Bold Forecast for Bitcoin’s Future

The value of Bitcoin has recently eclipsed the $100,000 mark, leading many industry analysts to speculate that this surge may just be the beginning. Cathie Wood, CEO of Ark Invest, has restated her ambitious target for Bitcoin to reach $700,000 by 2030. She envisions a future where a single Bitcoin might even attain values in the millions.

Every investor is advised to have at least a minimal stake in Bitcoin, even if it’s merely a $100 investment. Such a sum facilitates entry into the two Bitcoin exchange-traded funds (ETFs) highlighted below, though caution is advised; these funds offer distinctly different access to Bitcoin and the broader cryptocurrency market.

The World’s Largest Bitcoin ETF

Currently, the top Bitcoin ETF, in terms of total investments, is the iShares Bitcoin Trust ETF. As of the last reporting period, it boasted nearly $70 billion in assets, significantly surpassing its nearest competitor. This massive scale allows the fund to maintain lower management fees, set at a competitive 0.25%, compared to higher expenses often charged by rival ETFs.

One of the standout features of this Bitcoin ETF is its exclusive focus on Bitcoin investments. Purchasing Bitcoin directly can introduce numerous complexities, including challenging tax implications and potential security threats, with many investors falling prey to scams. Opting for the iShares Bitcoin Trust ETF simplifies the process, as highlighted in its prospectus, which states that structuring a Bitcoin investment through an ETF mitigates the operational, tax, and custody issues associated with holding Bitcoin directly.

Moreover, one of the greatest benefits of this ETF is the possibility for automated investing. A one-time investment of $100 can be supplemented with a monthly automatic withdrawal of the same amount, enabling investors to gradually dollar-cost average into Bitcoin, which is particularly beneficial given its volatility.

With over 99.9% of the trust’s assets allocated directly to Bitcoin, and a small fraction reserved for cash to cover daily operational needs, this ETF represents one of the most effective means of gaining exposure to Bitcoin. However, if your interests extend beyond Bitcoin, an alternative ETF awaits.

A Diversified Crypto ETF Beyond Bitcoin

Unveiled in 2023, the Bitcoin & Ether Market Cap Weight ETF offers a more diversified investment approach. While it primarily invests in Bitcoin, it also includes some allocations toward Ethereum, which is recognized as the second-largest cryptocurrency globally.

Ethereum presents unique differences from Bitcoin; it serves as a decentralized platform allowing the development of applications. As a result, investing in Ethereum means placing a bet on the entire crypto ecosystem instead of solely Bitcoin.

According to the latest data, this ETF maintains an 88% allocation in Bitcoin, with the remainder in Ethereum. Notably, exposure to these assets is achieved through futures contracts rather than direct holdings, introducing an element of correlation risk.

Investors should note that this added diversification comes at a higher cost, with an expense ratio of approximately 0.95%. For those looking for a more straightforward and economical option, the iShares Bitcoin Trust ETF is generally the recommended choice. Nevertheless, the BETH ETF serves as an excellent comprehensive alternative, allowing for automated investments in both Bitcoin and the broader crypto market without requiring large initial capital.

In conclusion, whether one opts for the more cost-effective iShares Bitcoin Trust ETF or the multi-faceted Bitcoin & Ether ETF, both avenues provide instant access to the evolving cryptocurrency landscape with a minimum investment of just $100.

Disclosure: Ryan Vanzo is an investor in Bitcoin and Ethereum. The Motley Fool has positions in and endorses Bitcoin and Ethereum, adhering to a strict disclosure policy.