Tag: Bitcoin (BITSTAMPUSD)

Is Bitcoin An Inflation Hedge? Maybe...

Posted on by Wayne Burritt

I don't have to tell you that no matter what economic stat you're interested in, the belle of the ball is inflation. It's the one that everyone loves to talk about. It's the one that politicians and talking heads like to worry you about. And it's the one that is responsible for a ton of real-world economic horror stories.

And right now, it stands a mind-boggling 5.4% annual rate, way above the Federal Reserve's target rate of 2%.

So, as a Bitcoin and blockchain enthusiast, is there something that maybe crypto can do for us as we navigate through increasing inflation?

You bet. And I'm about to tell you why.

Yes, Inflation Is Too High

If you're a fan of moderate inflation, you're probably not feeling great right now. Prices are at levels that haven't been seen in decades.

In fact, right now, inflation stands at an annual rate of 5.4% in September, up from 5.3% in August. And we haven't seen these kinds of levels in a long time. See for yourself... Continue reading "Is Bitcoin An Inflation Hedge? Maybe..." →

5 Week Winning Streak Ends

Posted on by The INO.com Team

The DOW rose 179.08 points or +0.50%, to close at 36,100.31. The S&P 500 gained +0.72% at close at 4,682.85, and the NASDAQ rallied, gaining +1.0% or 156.68 points to end the day at 15,860.96.

However, all three major indexes closed the week lower after the hottest inflation report in 30 years. The DOW fell -0.6%, the S&P 500 dipped -0.3%, and the NASDAQ eased -0.7% on the week. Despite the week's losses, the three major indexes are still within striking distance of their record highs. The S&P 500 is up more than 24% in 2021. Continue reading "5 Week Winning Streak Ends" →

The New Bitcoin ETF BITO: What You Need To Know Right Now!

Posted on by Wayne Burritt

I haven’t anticipated the launch of a security quite as much as the first Bitcoin Exchange Traded Fund (ETF), ProShares Bitcoin Strategy ETF (BITO). And when it finally hit two weeks ago, it was a ton hotter than even the most fervent enthusiasts expected.

But before you take a dive into this ETF, make sure to listen up for a sec. BITO is not all rainbows and unicorns.

What Is An Exchange-Traded Fund?

Before we get into the nitty-gritty surrounding BITO from ProShares, let’s take a step back and revisit what an ETF is under the hood.

An ETF is a type of security that tracks an index, asset, sector, or another asset. They can be designed to track a wide and diverse collection of assets or a narrower basket. They can also be created to track investment strategies.

In fact, if it’s an asset or index out there, there’s likely an ETF that can track it and let you invest in it. Continue reading "The New Bitcoin ETF BITO: What You Need To Know Right Now!" →

Indexes Set Records On Strong Jobs Report

Posted on by The INO.com Team

The stock market set another round of record closes on Friday after the October jobs report came in better than expected, boosting optimism about the economic recovery.

Pfizer announced a significant development regarding its easy-to-administer Covid-19 pill, which fueled hope for a smoother reopening, sending shares of airlines and cruise line operators soaring.

The DOW rose 203.72 points or +0.56%, to close at 36,327.95. The S&P 500 gained +0.374% to 4,697.53 for its seventh straight positive day, and the NASDAQ edged up +0.20% to 15,971.59. All three major averages reached their respective record-closing highs.

All three major indexes posted their fifth positive week in a row and finished solidly higher for the month. On a weekly level, the DOW gained +1.42%, the S&P 500 +2.00%, and the NASDAQ rounded out the week up +3.05%. Continue reading "Indexes Set Records On Strong Jobs Report" →

Bitcoin ETFs Aren't Going To Produce Same Returns As Bitcoin

Posted on by Matt Thalman

Bitcoin and other cryptocurrencies have once again hit new all-time highs over the past few weeks; many believe this was largely due to the hype surrounding the inception of the first Bitcoin Exchange Traded Funds in the United States.

The hype around the Bitcoin ETFs, like the ProShares Bitcoin Strategy ETF (BITO), was largely due to the idea that now the average investor or fund manager can easily garner access to Bitcoin through their standard investment platforms. The ETF would allow them to invest in Bitcoin without relying on the Coinbase's of the world or setting up a digital wallet and transferring funds into those accounts. It may sound like a small thing, but most investors prefer all their investments in one clean place.

The Grayscale Bitcoin Trust (GBTC), which many considered the first fund that gave the average investor access to Bitcoin in an easily tradable way and is a fund that actually holds bitcoins. BITO and the other newer Bitcoin ETFs, hold ‘futures’ contracts on Bitcoin, not the actual asset itself and this causes some issues with these new ETFs accurately tracking the price movements of Bitcoin. That is not to say that BGTC tracks Bitcoin price movements perfectly either, but it doesn’t have to deal with the same issues the newer ETFs will be facing. *(see footnote)

This type of investing is different from actually holding the asset itself because, in order to gain exposure to the asset through futures contracts, you spend more money to gain that exposure. Plus, you spend it each and every month when you'll roll' from one month's futures contracts into the next. Continue reading "Bitcoin ETFs Aren't Going To Produce Same Returns As Bitcoin" →