Bitcoin Basics

On January 10, 2024 the United States SEC approved the Bitcoin Spot ETFs which would allow large institutions to participate in the price movements of Bitcoin, buying and selling for profit. While this was a momentous occasion for the participation of large funds in the crypto market, it's important to note there have been many ways, prior to 2024 where individual consumers have participated in crypto trading.

Bitcoin (BTC) was invented in 2008 and released as open-source software in early 2009. The first Bitcoin transaction took place in January 2009 and cryptocurrency exchanges emerged between 2009 and 2017, which facilitated Bitcoin sales and purchases. Because of the lack of transparency around account ownership, money laundering, and other security risks, buying crypto on exchanges still had initial challenges where you couldn't use a credit card or linked bank account to make the purchase. With the 2024 announcement there is an ever evolving landscape on how to participate in crypto (specifically, Bitcoin) trading.

Investing for Exposure to Bitcoin Cryptocurrency

Closed End Funds

• Grayscale Bitcoin Trust ($GBTC)

Bitcoin Futures ETFs

• ProShares Bitcoin Strategy ETF ($BITO)

Bitcoin Spot ETFs (approved 1/10/24)

• Blackrock's iShares Bitcoin Trust ($IBIT)
• ARK 21Shares Bitcoin ETF ($ARKB)
• WisdomTree Bitcoin Fund ($BTCW)
• Invesco Galaxy Bitcoin ETF ($BTCO)
• Bitwise Bitcoin ETF ($BITB)
• VanEck Bitcoin Trust ($HODL)
• Franklin Bitcoin ETF ($EZBC)
• Fidelity Wise Origin Bitcoin Trust ($FBTC)
• Valkyrie Bitcoin Fund ($BRRR)
• Hashdex Bitcoin ETF ($DEFI)

Companies with Large Bitcoin Holdings on Balance Sheet

• MicroStrategy ($MSTR) - over $3 billion invested in Bitcoin
• Tesla ($TSLA) - over $1 billion invested in Bitcoin
• Block ($SQ) - over $50 million invested in Bitcoin

Companies Involved in the Mining of Bitcoin

• Riot Blockchain ($RIOT)
• Marathon Digital ($MARA)

Publicly Traded Cryptocurrency Exchanges  (or offer ability to buy/sell Bitcoin)

• Coinbase ($COIN)
• Robinhood ($HOOD)
• PayPal ($PYPL)

Picks and Shovels (Hardware/software needed in creation/management of Bitcoin)

• Nvidia ($NVDA) - their GPUs used for mining
• Advanced Micro Devices ($AMD) - their GPUs used for mining