With uncertainty still swirling about the economy, it’s an opportune time to get exposure to decentralized assets such as bitcoin. Dubbed “digital gold,” it provides investors with a safe haven amid the U.S. Federal Reserve’s tightening monetary policy.
Of course, that monetary tightening could come at the expense of economic growth. As such, rumblings of a recession continue, making it imperative that investors get diversified assets like bitcoin.
More and more, bitcoin has been building a reputation as a store of value aside from its capacity to serve as a medium of exchange. That store of value component is where the leading cryptocurrency in terms of market value mimics tangible precious metals like gold and silver.
“Investors have been diversifying with gold and silver for decades to limit their exposure to poorly executed monetary and fiscal policies,” wrote Frank Holmes in Forbes.
Additionally, the decentralization characteristic of gold and silver also flows over into bitcoin. The cryptocurrency only has a finite amount, and unlike the U.S. dollar, the U.S. government can’t simply make more of it, increasing its attractiveness and scarcity as a valuable asset.
“For the same reasons, more and more investors are also diversifying with Bitcoin, an asset whose payment system is based on ‘cryptographic proof instead of trust,’” Holmes added.
Get Exposure to Bitcoin via Futures
While investors may want to invest in bitcoin directly via unregulated crypto exchanges, there’s a safer option by using the traditional finance route, which has regulatory infrastructure. As such, consider investing in bitcoin futures via the ProShares Bitcoin Strategy ETF (BITO).
BITO provides the gateway for investors who want crypto exposure to diversify their assets but still want to remain within the safe confines of a regulated market. While the crypto market is growing and the government is looking into shoring up its regulatory structure, BITO can give investors the regulated crypto exposure they desire.
Additionally, the fund is actively managed, giving investors the peace of mind of knowing that their investment is in the hands of seasoned portfolio managers. Bitcoin can be a volatile asset, and active management can make portfolio changes on the fly when market conditions warrant an adjustment.
BITO is an alternative to getting decentralized exposure without direct access to the asset. Given the current economic uncertainty, now could be a good time to do so.
“As I see it, decentralized assets have never looked more attractive than they do now,” Holmes added. “That includes gold, silver and Bitcoin, and you could also make the case for collectibles like art.”
For more news, information, and strategy, visit the Crypto Channel.
