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Should You Invest in Bitcoin & Blockchain ETFs?

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  • (2:15) - Why Should Investors Consider Bitcoin?
  • (7:30) - Can Bitcoin Become A Mainstream Currency?
  • (10:45) - How Can You Assign A Value To Bitcoin?
  • (14:20) - Grayscale Bitcoin Trust: GBTC
  • (22:15) - Will The SEC Approve A Bitcoin ETF Anytime Soon?
  • (28:30) - What Is Blockchain Technology and Why Is It So Important?
  • (32:20) -  Reality Shares Nasdaq NexGen Economy ETF: BLCN
  • (41:30) - Why Has The Adoption Of Blockchain Been So Slow?
  • (48:25) - Episode Roundup: Podcast@Zacks.com

 

In this episode of ETF Spotlight, we focus on bitcoin and blockchain ETFs. Bitcoin has seen renewed interest of late since it has surged more than 50% this year. Blockchain is the technology that underpins bitcoin and other cryptocurrencies.

In the first part, my guest is Michael Sonnenshein, Managing Director at Grayscale Investments, the world’s largest digital currency asset manager. In the second part, I speak with Eric Ervin, CEO of Reality Shares, about the best performing blockchain ETF of 2020.

The Greyscale Bitcoin Investment Trust (GBTC - Free Report) acts as a bitcoin fund but is not an ETF. Several ETF providers have filed for cryptocurrency ETFs, but all those applications have been rejected by the SEC so far. Shares of GBTC, which are eligible to be held in certain IRA and other brokerage accounts, however, usually trade at a premium to its NAV.

Michael talks about the investment case for bitcoin, its role in an investment portfolio and making sense of its value. The notoriously volatile asset, which is still trading significantly below its all-time high of about $20,000 reached in late 2017, could get a boost from ultra-loose monetary policies.

Blockchain is a very powerful technology that has many applications beyond cryptocurrencies.

The Reality Shares Nasdaq NexGen Economy ETF (BLCN - Free Report) , one of the first ETFs to focus on this technology, has gained about 33% this year.

Overstock (OSTK - Free Report) , Nvidia (NVDA - Free Report) , Square (SQ - Free Report)  and DocuSign (DOCU - Free Report)  are among its top holdings.

Tune into the podcast to learn more. Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.

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