Ciaran Ryan
3 minute read
7 Mar 2021
8:16 am

Investing in stocks that invest in bitcoin

Ciaran Ryan

Investment firms are now realising they can no longer ignore the outsize returns generated in this new asset class.

MTI promised investors up to 10% return a month using a computerised trading system, first trading forex, then bitcoin, although the Financial Sector Conduct Authority (FSCA) could not find any evidence of trading success by the company. Picture: GETTY IMAGES NORTH AMERICA/AFP/GEORGE FREY

Some investment mandates specifically preclude a direct investment in cryptocurrencies, but there are ways to invest in stocks that provide an indirect exposure to bitcoin. Perhaps the most high profile of these is Tesla, which recently announced a $1.5 billion (about R23 billion) investment in bitcoin, equivalent to nearly 10% of its treasury assets. “Having some Bitcoin, which is simply a less dumb form of liquidity than cash, is adventurous enough for an S&P 500 company,” tweeted Tesla CEO Elon Musk recently. Musk was persuaded of the benefits of bitcoin as a store of value by MicroStrategy CEO Michael Saylor,...