Want to invest in Bitcoin or Ethereum but don’t want the hassle? Financial advisors are finding a clever workaround. Instead of dealing with digital wallets and private keys, they’re recommending clients invest in the stocks of companies that already own or mine crypto.
Company Stocks: Your Crypto Backdoor
Companies like MicroStrategy (MSTR) and Bitmain Technologies (BMNR) are prime examples. MSTR holds a massive amount of Bitcoin, while BMNR actively mines crypto. Owning their stock is essentially like owning a piece of the crypto itself, without the complexities. Big investors like Ark Invest are already on board, demonstrating the growing popularity of this approach.
This method offers several advantages:
- Simplified Tax Reporting: Instead of a bunch of complicated tax forms for each crypto transaction, you’ll likely see a single line item on your brokerage statement.
- Transparency and Security: These are publicly traded companies, meaning they have qualified audits and are subject to regulatory oversight. This is a much safer and more transparent option compared to holding crypto in your own wallet.
- Familiar Investment: For those unfamiliar with blockchain technology, this feels like a more traditional investment in energy or software companies.
Robinhood’s Sweet Deal: A Crypto Incentive
Beyond investing in company stocks, Robinhood is also encouraging users to explore the broader crypto world. They’re offering a 2% bonus when you transfer your crypto off their platform and into your own wallet. This small incentive can cover transaction fees, potentially leaving you with extra crypto. This move is likely tied to the recent unlocking of staked Ethereum, as platforms compete to attract users who are now free to move their assets.
In short, there are now several easier ways to gain exposure to Bitcoin and Ethereum without the headaches of direct ownership. Whether you choose company stocks or take advantage of Robinhood’s bonus, there are options for every comfort level.
