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Think Cryptocurrencies are Due for a Bounce? Then Consider Buying These 2 ETFs

Published 12/06/2021, 11:57 AM
Updated 12/06/2021, 01:30 PM
© Reuters.  Think Cryptocurrencies are Due for a Bounce? Then Consider Buying These 2 ETFs
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Following a crackdown by Chinese regulators, the United States has emerged as the new crypto capital for miners. In addition, miners have been stockpiling cryptocurrency, which could further drive the crypto market higher. So, we believe investors seeking to benefit from favorable trends in the crypto market in a less risky manner should consider investing in cryptocurrency ETFs Grayscale Bitcoin (GBTC) and Amplify Transformational Data Sharing (BLOK). Let’s discuss.Cryptocurrencies are becoming more widely recognized as a method of exchange worldwide, with numerous multibillion-dollar corporations already accepting Bitcoin payments. And after China effectively shut down the Chinese crypto industry by outlawing Bitcoin—the largest cryptocurrency—the United States has emerged as the world’s new mining capital, accounting for 35% of the worldwide hash rate, which is a measure of the aggregate computational power of miners.

Following a near-all-time high rally, Bitcoin fell below $16,200 post-Thanksgiving. This was purportedly linked to Chinese authorities retrieving $4.2 billion in cryptocurrencies as part of the Plustoken Ponzi scheme. However, the recent price dip could be viewed as an opportune time to invest in cryptocurrencies. In addition, as investors' interest in high-flying digital currencies continues to grow, the global cryptocurrency mining market is projected to grow at an 11.5% rate over the next seven years.

Since it’s challenging to choose the best cryptocurrency, we think investors seeking to cash in on the favorable crypto trends in a less risky manner could bet on quality crypto funds Grayscale Bitcoin Trust (GBTC) and Amplify Transformational Data Sharing ETF (BLOK).

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