The past few months have been an incredible period in the world of cryptocurrencies and much of that has been fueled by the remarkable rally in Bitcoin.
Bitcoin Hits $23K Mark
The world’s biggest cryptocurrency by market cap continued its surge this week and on Wednesday, went past $23,000 a token to hit its highest level in history. However, this has led to a massive rally in a digital asset fund that holds both Ethereum and Bitcoin. It rallied by as much as 369% in the middle of the latest rally and it suggests that investors are interested in having exposure to digital suggests.
It is also necessary to note that buying these cryptocurrencies outright would have worked cheaper but investors are willing to get access to this digital asset fund. The fund in question is the Bitwise 10 Crypto Index Fund (BITW), which is an index of the 10 biggest cryptocurrencies in the world.
It can be bought online by investors easily and consequently, the ‘fear of missing out’ or FOMO has created significant demand for its stock. It gives investors the opportunity to have exposure to digital assets without actually buying them individually.
One of the newest crypto funds to have come into existence is the Bitwise 10 Crypto Index Fund. It was established on December 9 and since its inception, it has rallied strongly. The fund has skyrocketed by as much as 370%. The rally in the fund is higher than the gains generated by Bitcoin and Ethereum during the same period.
However, at the same time, Bloomberg Intelligence analyst James Seyffart has called it a ‘mania’ and stated that there are a limited number of shares of these funds that are available.
He went on to state that the rally in these funds is a bit over the top and the premiums being paid by people are unrealistic. That being said, as long as Bitcoin continues to rally there is going to be interested in these funds and hence, investors could consider tracking these funds.
Disclosure: We hold no position in BITW stock.