Despite Crypto Winter, Elon Musk Says Bitcoin “Will Make It”
Tesla founder and CEO Elon Musk isn’t worried about the recent retreat of bitcoin. Cryptocurrencies have been decimated all year, but Musk says bitcoin in particular will make it through the “crypto winter.”
After seeing a rally past the $21,000 mark, bitcoin has recently pulled back, falling below $16,000 at one point. The latest downturn was the fallout from the FTX disaster, which reintroduced doubt into the cryptocurrency market as a safe means of parking capital.
“FTX, one of the leading cryptocurrency exchanges in the world, came to a drastic and almost instantaneous end,” reported a Bitcoin Magazine article. “The company, which presented itself as a savior of the ecosystem when it constantly insisted it would buy other failing companies to protect consumers, failed to protect its own customers after filing for bankruptcy and then being hacked for over $515 million in consumer funds.”
Security measures have already plagued the cryptocurrency world, casting doubt on the security of exchanges. This has been a constant talking point for the Securities Exchange Commission (SEC) as an obstacle to allowing more bitcoin-related funds to enter the traditional financial infrastructure.
Furthermore, inflation fears have the crypto market correlating with stocks and bonds for most of the year. Nevertheless, bitcoin still has a vote of confidence from Elon Musk.
BTC will make it, but could be a long winter
— Elon Musk (@elonmusk) 14 November 2022
Bitcoin Futures Exposure
The recent pullback may provide investors with a value range for a buying opportunity. While investors may want to invest in bitcoin directly via unregulated crypto exchanges, using the traditional financial route, which has regulatory infrastructure, is a safer option. Investors can consider investing in bitcoin futures via ProShares Bitcoin Strategy ETF (BITO).
BITO provides the gateway for investors who want crypto exposure to diversify their assets, but still want to remain within the safe confines of a regulated market. As the crypto market grows and the government looks to strengthen its regulatory structure, BITO can provide investors with the regulated crypto exposure they want.
In addition, the fund is actively managed, giving investors peace of mind knowing that their investment is in the hands of experienced portfolio managers. Bitcoin can be a volatile asset, and active management can make portfolio changes on the fly when market conditions warrant an adjustment.
BITO is an alternative to get decentralized exposure without direct access to the asset. Given the current economic uncertainty, now may be a good time to do so.
For more news, information and strategy, visit Crypto channel.
