Three cryptocurrency investments to duck tariffs give investors exposure to an asset class that forecasts predict can outperform the stock market for the rest of the decade.
Bitcoin is starting to climb again this week to approach $120,000, after slipping to $113,887.55 on Tuesday, Aug. 3. The Trump administration ushered in policies last month to enhance interest in the cryptocurrency to show unbridled support to spur the cryptocurrency market.
In fact, the price of Bitcoin reached a new high of $123,000 in July. After President Trump won election in November 2024, the price of Bitcoin surged from roughly $70,000. As I wrote last week, the price drop in early August turned into a timely buying opportunity for those willing to face the typical volatility of cryptocurrencies.
Three Cryptocurrency Investments to Duck Tariffs: Forecast
President Trump has supported relaxed regulation of cryptocurrencies, along with crypto-friendly voting in Congress. One example is last month’s passage of the GENIUS Act, which set up regulatory norms for the crypto space and solidifies a connection between crypto and the dollar with requirements for backing with U.S. treasury bills, according to the TNT Trader advisory service led by Mark Skousen, PhD, and his son Tim Skousen.
Mark Skousen, head of TNT Trader and Forecasts & Strategies, meets with Paul Dykewicz.
Three Cryptocurrency Investments to Duck Tariffs: Diversification
Now is a great time to own a well-diversified portfolio, according to the Retirement Watch investment newsletter. U.S. stock indexes recently established all-time highs.
But many international stocks lately are doing even better than U.S. stocks. Gold probably will soon break out of the trading range it has been in since late April and resume its multi-year, record-breaking bull market, while Bitcoin and related assets have bounced back from their corrections earlier this year to set new highs, wrote Retirement Watch investment newsletter leader Bob Carlson, a former pension fund chairman. He now is recommending positions in Bitcoin.
Bob Carlson heads Retirement Watch and his proprietary IRA Caculator.
“Several factors are behind the latest surge in Bitcoin,” Carlson counseled. Exchange-traded funds (ETFs) that hold Bitcoin became available just over a year ago are experiencing increased demand, especially from U.S. investors.
“The interest is propelled by favorable regulatory changes in the United States and reports that the Federal Reserve might reduce interest rates later this year,” Carlson continued. “In addition, more companies are adopting the approach of Strategy (NASDAQ: MSTR), formerly MicroStrategy, of turning themselves into leveraged investors in Bitcoin,” he added.
“Bitcoin rallies always bring new speculators into the market,” Carlson counseled. “Regulators can increase the upward momentum,” he added.
Three Cryptocurrency Investments to Duck Tariffs: BLOK
Investors increasingly are buying shares in equities that are tied to cryptocurrencies like Bitcoin, blockchain technology or both. One speculative recommendation that adds alpha to the Forecasts & Strategies newsletter portfolio is Amplify Transformational Data Fund (NYSEArca: BLOK). The fund invests in crypto and blockchain technology.
BLOK invests in companies that finance cryptocurrencies and blockchain technology. TNT Trader subscribers notched an average 120.54% gain in BLOK late in 2024 when the were advised to buy call options in the fund and sell them in three parts. The exposure to blockchain technology helps the fund diversify beyond a pure play in Bitcoin.
Chart courtesy of www.stockcharts.com
Five Cryptocurrency Funds for Buying to Aid Diversifying: GBTC
Grayscale Bitcoin Trust (GBTC) is an open-ended trust launched and managed by the world’s biggest crypto asset manager, Grayscale Investments, LLC, to give exposure to Bitcoin. GBTC invests through derivatives such as futures, swaps and other Commodity Futures Trading Commission (CFTC)-regulated products.
The company aims for aggressive growth, while dividend-paying GBTC tracks the performance of the TradeBlock XBX Index. As for trading liquidity, GBTC dominates other Bitcoin-focused funds and exchange-traded products (ETPs).
I recommended GBTC for the 2024 MoneyShow special report in late 2023, and it doubled during 2024 to finish as the second-best-performing investment among the more than 40 market forecasters who contributed their top ideas. GBTC rose 137.3% in 2024, following a rise of 317.61% in 2023.
However, Bitcoin can be volatile. Examples include GBTC falling 75.0% in 2022, after rising 7.0% in 2021, 290.7% in 2020 and 106.5% in 2019. As further proof appreciation is not assured, GBTC slid 82.1% in 2019.
President Trump’s support for Bitcoin and other cryptocurrencies could help boost their value further in 2025. A key reason why I recommended GBTC in December 2023 still exists. Bitcoin’s launch in 2009 called for the total supply to be limited to no more than 21 million coins. That cap avoids potential inflation of Bitcoin that remains as relevant now as it did then.
Another reason is that the Securities and Exchange Commission (SEC) approved the launch of exchange-traded funds to allow trading of cryptocurrencies such as Bitcoin on the spot market like stocks and funds. That happened in January 2024, just as I predicted.
Chart courtesy of www.stockcharts.com
Three Cryptocurrency Investments to Duck Tariffs: BTC
“There are a lot of big and small players in cryptocurrency, and I feel like investors are entering the Wild West days of this unregulated and relatively new asset class,” said Michelle Connell, the head of Dallas-based Portia Capital Management. “No one needs to be a cowboy.”
If an investor feels the need to have exposure to cryptocurrency, Connell said she recommends allocating monies to Grayscale Bitcoin Mini Trust (BTC), an ETF that is solely and passively invested in Bitcoin.
Michelle Connell heads Dallas-based Portia Capital Management.
The fund’s investment objective is to reflect the value of Bitcoin held by the Grayscale Bitcoin Mini Trust, less expenses and other liabilities. Bitcoin’s increasing support by the Trump administration is boosting investor interest in the digital asset.
“BTC gives an investor exposure to Bitcoin without a direct investment in the cryptocurrency and the complexities of setting up an account,” Connell told me. “At 0.15%, the expense ratio is the one of the cheapest ways for an investor to own Bitcoin.”
“With Grayscale already having more than 10 years of experience, it is one of the largest crypto managers,” Connell continued. Grayscale’s Bitcoin ETF’s assets under management is now “huge” by reaching $5 billion. The fund also should offer liquidity during a financial crisis.
Chart courtesy of www.stockcharts.com
Five Cryptocurrency Investments to Duck Tariffs: Gold
The historic bull market in gold has slowed lately, but the forces behind it remain in place.
The major factor the last few years has been global central banks, especially in Asia, reducing their U.S. dollar reserves in favor of gold. It came in response to the financial sanctions imposed on Russia after it invaded Ukraine more than three years ago. The central bank diversification has not been completed.
“The trade and tariffs war and global conflicts in general also boost demand for gold,” said Carlson. “The tumbling U.S. dollar also increases the price of gold in dollars,” he added.
Five Cryptocurrency Investments to Duck Tariffs: Summary
The three cryptocurrency investments to duck tariffs should benefit for any Bitcoin rebound. Despite the uncertain outcome of planned talks in Alaska between President Trump and Russia’s President Vladimir Putin this Friday, Aug. 15. The talks are inteneded to address a potential ceasefire of the war Russia started, but President Putin has been made that he wants to be given control of land that is part of Ukraine’s sovereign territory.
Investors still may be able to profit from cryptocurrencies despite the high geopolitical risk. With cryptocurrency equities rising again, some investors may feel comfortable to buy now.
Bitcoin is not immune to slipping back below $100,000, with the price showing weakness but no signs of a deep drop. However, ZAYK Charts reported that a dip to $95,000, a level not seen since early May, is a possibility based on technical analysis. Let buyers beware.
Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is great as a gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for multiple-book pricing.
