Musk Says Bitcoin “Will Make It” Despite Crypto Winter
Tesla founder and CEO Elon Musk isn’t worried about the recent bitcoin pullback. Cryptocurrencies have been decimated all year, but Musk says that bitcoin in particular will make it through the “crypto winter.”
After seeing a rally past the $21,000 mark, bitcoin has pulled back recently, falling below $16,000 at one point. The latest drop was fallout from the FTX calamity, which re-instilled doubt in 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,” a Bitcoin Magazine article reported. “The firm, which presented itself as a savior to the ecosystem when it continuously insisted it would acquire other failing companies to protect consumers, failed to protect its own customers after filing for bankruptcy subsequently getting hacked for over $515 million in consumer assets.”
Safety measures have already been plaguing the cryptocurrency world, casting doubt on the safety of exchanges. This has been a constant talking point for the Securities Exchange Commission (SEC) as a hurdle for allowing more bitcoin-related funds to enter the traditional finance infrastructure.
Furthermore, inflation fears have the crypto market correlating with stocks and bonds for most of the year. Nonetheless, bitcoin still has a vote of confidence from Elon Musk.
The recent pullback could give investors an area of value for a buying opportunity. While investors may want to invest in bitcoin directly via unregulated crypto exchanges, there’s a safer option by using the traditional finance route, which has regulatory infrastructure. Investors can consider investing in bitcoin futures via the 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. While the crypto market is growing and the government is looking into shoring up its regulatory structure, BITO can give investors the regulated crypto exposure they desire.
Additionally, the fund is actively managed, giving investors the peace of mind of knowing that their investment is in the hands of seasoned 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 getting decentralized exposure without direct access to the asset. Given the current economic uncertainty, now could be a good time to do so.
For more news, information, and strategy, visit the Crypto Channel.