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Bitcoin ETFs: A Safe Haven or High-Growth Asset?

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Bitcoin, the world’s largest cryptocurrency by market value, surged to a new all-time high of $125,245.57 on Sunday, per Reuters, as quoted on Yahoo Finance. Bitcoin prices are up by 33.3% so far this year (as of Oct. 3, 2025).

The rally has been fueled by supportive regulations from the Trump administration and rising demand from institutional investors. Grayscale Bitcoin Mini Trust (BTC - Free Report) and iShares Bitcoin Trust (IBIT - Free Report) have added about 101% over the past year.

Inside the Streak of Gains 

Friday’s session marked Bitcoin’s eighth successive day of gains, supported by strength in U.S. equities and continued inflows into bitcoin exchange-traded funds (ETFs), per the above-mentioned Reuters article. With institutional interest growing, fueled by the introduction of Bitcoin-based ETFs in January 2024, the cryptocurrency market has experienced a surge in demand, while its supply remains relatively fixed, as quoted on CNBC. Trump’s crypto-friendliness also favored the whole crypto space.

Is Bitcoin a Safe Haven Now?

The U.S. dollar weakened on Friday on government shutdown concerns, which delayed key data releases, including payrolls. Some market watchers are of the opinion that Bitcoin is probably rallying on safe-haven demand amid shutdown worries.

Also, Bitcoin is widely regarded as a hedge against inflation, thanks to its fixed supply cap of 21 million coins. As most governments are easing monetary policies and Trump’s import tariffs may raise inflation globally, Bitcoin’s scarcity may help it retain value better than traditional currencies.

Rate Cuts Could Favor Risk-On Assets Like Bitcoin

The Fed enacted the first rate cut of this year in September. The central bank is expected cut more in the coming days to restore a weakening labor market. Lower rates normally favor risk-on assets like Bitcoin by reducing the opportunity cost of holding non-yielding assets.

Bitcoin Miners Focusing on AI Infrastructure

Bitcoin miners are evolving fast. Originally focused on mining, they are now leveraging their power-dense data centers to tap into the booming AI infrastructure market. By mid-2025, dozens of former Bitcoin mining companies started redirecting their infrastructure into AI data centers, converting their GPU-heavy, energy-intensive setups into rentable compute farms for training, inference, and high-performance computing, as quoted on datacenters.com.

Safety vs. Volatility

Despite its recent gains and increasing mainstream acceptance, Bitcoin remains a complex asset that can register acute price swings. While the introduction of ETFs and growing investor interest have contributed to its stabilization, interested investors should remain cautious and aware of the risks involved.

Safe Bitcoin ETFs for Risk-Averse Investors

Issuers have introduced various tools to make a high-risk asset, such as Bitcoin, more accessible and appealing to risk-averse investors. Calamos has launched a suite of Bitcoin buffer ETFs: Bitcoin Structured Alt Protection ETF – January (CBOJ - Free Report) , Bitcoin 90 Series Structured Alt Protection ETF – January (CBXJ - Free Report) and Bitcoin 80 Series Structured Alt Protection ETF – January (CBTJ - Free Report) .


 

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