The Motley Fool

3 Top Bitcoin Plays for the Next Bull Market

stock market
Image source: Getty Images

Bitcoin is beginning to rise again after a crash earlier this year. After reaching a high of US$63,729 in April, BTC began a steep descent, going as low as US$30,000. The downward price movement had many investors panicking at the time, but it was not to last. Just weeks after reaching US$30,000, Bitcoin rallied. Today it sits at a princely US$46,000. BTC is still not anywhere near its all-time highs, but it is once again in bullish mode.

In this article, I’ll outline three Bitcoin plays that you can use to ride the wave of positive momentum in the world’s biggest cryptocurrency.

Purpose Bitcoin ETF

The Purpose Bitcoin ETF (TSX:BTCC.B) is a publicly-traded ETF that holds–you guessed it–Bitcoin. The fund doesn’t have any other holdings apart from BTC, making it essentially a stock market traded Bitcoin play. The fund’s managers charge a 1% per year fee. That might sound steep, especially considering that this fund doesn’t involve any active management, but it may be worth it.

First off, with a publicly-traded ETF like BTCC.B, you don’t have to worry about security issues like lost passwords. Second, this fund can easily be held in a Tax-Free Savings Account (TFSA), so you don’t need to worry about paying taxes on your holdings. Overall, it’s a nice alternative to holding Bitcoin that could save you money in the long run.

HIVE Blockchain Technologies

HIVE Blockchain Technologies (TSXV:HIVE) is a crypto mining company that mines BTC and Ether. It’s not a Bitcoin pure play but it’s pretty close to it.  The company mines two different cryptocurrencies, of which Bitcoin is one. In its most recent quarter, HIVE achieved:

  • $13.7 million in digital currency income, up 147%.
  • $13.7 million in cash flow, up from $5.7 million.
  • $0.05 in net income per share, up from $0.01.

Those are petty solid numbers all around. They come from the company’s quarter ended December 30. HIVE encountered some difficulties preparing its financial statements this year, so its first-quarter earnings aren’t out yet. While that’s perhaps not the best sign regarding management competence, at least the most recent quarter we do know about was good.

Bitcoin

Last but not least, we have Bitcoin itself.

If you’re pretty tech-savvy and know how to get a crypto wallet, you can always invest in good old BTC and just sit on the position. Unlike BTCC.B and HIVE, Bitcoin has no fees, expenses, or other financial factors you have to keep on top of. As long as demand for Bitcoin increases more than supply, your BTC will keep going up.

On that note, about 18.5 million of the 21 million total minable Bitcoin have been mined already. So BTC is nearing its supply cap, which it should hit in 2040. Unlike fiat currency, BTC won’t be printed away to nothing. As long as people still believe in it, it will have some value.

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 Andrew Button has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.