How to benefit from crypto assets

Investors can benefit from the cryptocurrency boom in a number of ways: with stocks, ETFs, and bonds. An overview for everyone.

A worker inspects a Bitcoin farm in Russia.

When it comes to Bitcoin and other crypto values, opinions couldn’t be more contradicting. “Disgusting,” she thinks Charlie Munger, who runs the Berkshire Hathaway conglomerate with Warren Buffett. Opposite the 97-year-old are people like Mike Novogratz, who see Bitcoin as digital gold because the crypto currency, like the precious metal, is limited in availability and must therefore increase in value. According to the head of the investment company Galaxy Digital, the Bitcoin price could reach half a million dollars by 2024 – around ten times more than today. Bitcoin would then have a higher market capitalization than all gold for which there are securities.

Reality stands between fans and despisers: The fact is that more and more professional investors and companies attribute importance to crypto currencies as a store of value and to protect against inflation; like gold, only digital and not with that long history. A cryptocurrency like diamonds, art, postage stamps or gold does not generate any cash income, according to portfolio manager Jeroen Blokland of asset manager Robeco: “Nevertheless, all of these types of investment have monetary value and most of them are viewed as a store of value.” But the fact is that some large Bitcoin owners can cause violent fluctuations: because they sell handsome shares, or because someone like Tesla boss Elon Musk announces that the e-car manufacturer will no longer accept Bitcoin as a means of payment.

ALyo Natour