Forget Bitcoin ETFs: Buy This Instead

The Purpose Bitcoin ETF (TSX:BTCC.B) launched recently, but investors might want to consider other options before buying this stock.

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Bitcoin seems to only catching more steam in 2021. Cryptocurrency bulls believe it’s only the beginning, with Bitcoin surging above the US$50,000 mark and still hovering around there. However, not everyone is so sure that the Bitcoin rally will continue.

In fact, some are calling Bitcoin outright dangerous. Yet it’s hard not to be tempted by Bitcoin, with prices surging, and investors like Elon Musk getting on board. But now, there is another way investors can jump on the Bitcoin bandwagon: through an exchange-traded fund (ETF).

Purpose Bitcoin

In February, Canadians received an opportunity to start investing in Bitcoin through the Purpose Bitcoin ETF (TSX:BTCC.B). The ETF aims to track the performance of Bitcoin directly, and investors clamoured aboard. More than $260 million of shares were bought and sold during the first day of trading on February 18 — all for the incredibly reasonable price of around $9 per share as of writing.

It’s likely that a correction will happen in the near future, as shares continue to climb. Yet it’s still a bargain compared to the near US$50,000 price of Bitcoin. Yet this insane rise during the last year raises red flags of investors looking for a get-rich scheme. It’s been further fueled by Elon Musk’s latest moves. But once the excitement wears down, I think investors like Warren Buffett have it right.

There are already enough currencies in the world, and there isn’t any real value to Bitcoin. People simply choose to use it or not. There’s nothing tangible that can be improved, held, made, it’s just is … so what could investors look to instead?


Another area continuing to see a major bull run is the e-commerce market. This isn’t something that will simply die overnight. In fact, the e-commerce market is set to boom right through the next decade according to analysts. It already was supposed to grow by leaps and bounds, but the pandemic sent shares in these e-commerce companies soaring.

If you still want a share price that’s not in the thousands, but want strong returns in the short term, I would recommend a stock like Lightspeed POS (TSX:LSPD)(NYSE:LSPD). The company’s expansion into e-commerce and the New York Stock Exchange recently has sent shares soaring. In fact, shares are up 150% in the last year alone!

Yet the company has so much more room to grow. Its customer base rose 74% during the latest earnings report, with 115,000 new locations. Many of these are in the United States, where the company continues to see massive growth as well. The best part is that the revenue coming in from Lightspeed stock is recurring from people signing up to the now necessary product of an online presence.

Bottom line

You don’t have to jump on the bandwagon, but it doesn’t mean you don’t have to jump on any bandwagon. E-commerce is still a bet I’d back any day of the week given the continued demand for e-commerce products. Lightspeed stock will continue to rise as it grows larger, but I’m not sure about Bitcoin. There is bound to be a pullback soon, so investors may want to wait for a cooldown before buying the Purpose ETF.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe owns shares of Lightspeed POS Inc. The Motley Fool owns shares of Lightspeed POS Inc.

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