MARA - IBIT Is A Great Vehicle For BTC Investing
2024-06-21 08:00:00 ET
Summary
- iShares Bitcoin Trust is an institutional bitcoin ETF allowing retail investors to indirectly invest in BTC through any brokerage account.
- Approval of bitcoin spot ETFs changed how individuals invest in bitcoin, removing operational risks associated with alternative strategies like investing in mining companies.
- IBIT provides substantial liquidity to investors with $19.7b in AUM with a low bid/ask spread.
iShares Bitcoin Trust ( IBIT ) is one of many institutional bitcoin ETFs launched this year after the SEC’s approval of bitcoin ETFs on January 10, 2024 . This event significantly changed how retail investors could access the coin by allowing them to indirectly invest in the cryptocurrency without outright purchasing them through a separate exchange. IBIT, like other ETFs, can be purchased through any brokerage account, whether taxable or tax deferred. From an advisor’s perspective, it would be prudent to allocate upwards of 5% to IBIT as a proxy for BTC; however, looking at BTC from a short-term trader’s perspective, the coin appears to be going through a downcycle. I recommend IBIT with a BUY recommendation for long-term investors seeking to gain exposure to BTC in their retirement accounts. Given the volatility of BTC, I cannot recommend a price target for IBIT....
IBIT Is A Great Vehicle For BTC Investing