The latest crypto sell-off may have shaved off a considerable number of retail investors, but institutional investors still have curiosity in the long-term potential of the crypto market. Venture capital firms, in particular, are harboring more interest in the leading cryptocurrency, bitcoin.
Venture capital funds have been flowing into the crypto space with respect to startups, but capital has been spread out as opposed to being concentrated in a certain niche. This umbrella approach might be akin to hedging bets in the crypto space with a lot uncertainty swirling, especially amid the latest sell-offs.
“Venture capital firms have plowed billions of dollars. into crypto startups in recent years, however, their scattergun approach betrays a lack of in-depth expertise and a lack of certainty about the likely winners to emerge,” a Forbes article said.
Despite this, one constant has been bitcoin. The leading cryptocurrency in terms of market cap has seen better days after reaching a high of $69,000 back in November 2021.
Year-to-date, bitcoin has fallen about 60%, but it’s still the go-to cryptocurrency when looking at the vast number of options available in the market. The latest sell-offs may have pushed certain crypto projects to the wayside, but interest in bitcoin is still resilient.
Countries like Argentina have been flocking to bitcoin as a respite from global inflation pressures. This is still the case despite recent turmoil in the crypto market.
“But amidst all the noise, bitcoin has always stood out from the crypto crowd,” the article added. “It is well-established and widely traded – with both corporate and sovereign adoption now beckoning. Notwithstanding the current dip, it has proven itself to be stable, secure, and technologically unique, over a prolonged period.”
Prospective crypto investors also have options when it comes to bitcoin exposure. Using bitcoin futures as its primary focus, investors can use an exchange traded fund (ETF) in the form of the ProShares Bitcoin ETF (BITO).
Investors worried about security via online cryptocurrency exchanges can invest with confidence in a traditional market exchange using BITO — in this case, the New York Stock Exchange. The fund is also actively managed, putting the portfolio management of the fund in the hands of professionals.
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