The price of Bitcoin went up to a three-month high at 46,293 USD after bulls established that they aim to take complete control of the market. While cryptocurrency traders may be seeing themselves in the green again, with pro traders looking to include much vaster leveraged positions, not every category of investors to gain direct exposure to Bitcoin.
For institutional investors, a fund manager establishes the rules for what portion of the portfolio is invested in numerous asset classes as well as different firms have diverse appetites for risk. The reasons why investors may be jumping into these assets versus merely holding Bitcoin involve the already mentioned restrictions and the regulatory uncertainty around the purchase of Bitcoin directly.
Due to this, several entities are held back from investing directly into Bitcoin as well as other digital currencies but there are alternate ways to gain exposure to the cryptocurrency sector.
Corporations that specialize in the mining of Bitcoin have also managed to generate large profits, and a large portion of them are listed can be an offset play for the type of investors seeking to gain some exposure to Bitcoin in their stock portfolios.
The recent miner clampdown in China has resulted in a more divided mining network. It has also prompted numerous rounds of expansion as well as fundraising for registered Bitcoin mining firms that could likely benefit from the remodelling of Bitcoin’s international mining network that is bound to continue for what is to come.
The software firm MicroStrategy along with its chief Michael Saylor have become very well known throughout the virtual currency sector for his constant support for the world’s leading digital currency as a store of value and the enormous amount of Bitcoin the firm invested into in the previous year.
Aside from helping educate the world about the promising nature of Bitcoin and blockchain technology, MicroStrategy has aggregated a Bitcoin portfolio with a surplus of 105K in Bitcoin in its exchequer as a means of hedging against inflation.
Consequently, MicroStrategy’s share price has become fairly correlated with the price-quality ratio of Bitcoin and it has been witnessed moving concurrently with the leading virtual currency.
Registered companies that primarily deal in Bitcoin and virtual currency mining have also taken advantage of the price growth in Bitcoin, the most popular Bitcoin mining company being Riot Blockchain, a firm that works at operating warehouses with ASIC miners to aid in processing transactions on the network in exchange for Bitcoin rewards.
