In partnership with
Get value stock insights free.
PayPal, Disney, and Nike recently dropped 50-80%. Are they undervalued? Can they recover? Read Value Investor Daily to find out. We read hundreds of value stock ideas daily and send you the best.
Imagine standing at a crossroads. On one path, there's the traditional route — stocks, bonds, and the safety of familiar investments. On the other, a road less traveled, marked by the flashing signs of cryptocurrency, a realm where fortunes have been made overnight, and lost just as quickly.
Cryptocurrencies have turned many into millionaires over the last decade, and Bitcoin (BTC) has been a major player in this transformation. Optimists like Michael Saylor, executive chairman of MicroStrategy (MSTR), believe that Bitcoin's journey is just beginning and that its value could climb much higher in the years ahead, potentially creating a new wave of millionaires.
However, buying Bitcoin hasn’t always been straightforward. Traditionally, it required setting up an account with a cryptocurrency exchange, sharing your banking details, and navigating a sometimes complicated buying process. This was once the only way to directly add Bitcoin exposure to your investment portfolio.
That all changed in January 2024, when the Securities and Exchange Commission (SEC) approved the launch of 11 spot Bitcoin exchange-traded funds (ETFs). These ETFs allow investors to buy and sell shares just like they would any other stock, with share prices directly linked to Bitcoin’s real-time value.
This shift has made investing in Bitcoin more accessible than ever. Leading the way is the iShares Bitcoin Trust ETF (IBIT), currently the largest and most popular spot Bitcoin ETF, with a current price of around $34.42 and a 52-week range between $22.02 and $41.99. But the question remains: Can you count on this iShares trust to help you achieve millionaire status?
Is Bitcoin a Smart Investment?
The iShares Bitcoin Trust only makes sense as an investment if there is confidence in Bitcoin's long-term potential. Enthusiasts like Michael Saylor are convinced that Bitcoin will continue to rise, while others remain cautious. Notably, renowned investor Warren Buffett has stated he won't be buying this ETF anytime soon.
Bitcoin is Forever Money with Michael Saylor
In 2018, Buffett predicted that Bitcoin and the broader cryptocurrency market would "come to a bad ending." Even four years later, he maintained that he wouldn't buy "all the Bitcoin in the world" for $25, believing it lacks any intrinsic value.
While Buffett’s skepticism is hard to ignore, it doesn't necessarily mean Bitcoin should be dismissed entirely. For some, there is value in Bitcoin as a secure form of digital asset storage, warranting a small, measured position in their portfolio. For instance, many investors keep cryptocurrency exposure limited to less than 1% of their total investments, with Bitcoin representing only a fraction of that allocation.
This approach positions itself between the extremes of Warren Buffett’s caution and Michael Saylor’s bullishness — open to the potential gains Bitcoin might offer, but not overcommitting. It strikes a balance that may seem more reasonable than either staying completely on the sidelines or going all in. Of course, each investor must consider their own risk tolerance and investment strategy when making such decisions.
What Makes the iShares Bitcoin Trust ETF Stand Out?
If you're considering an investment in Bitcoin, the iShares Bitcoin Trust ETF might have caught your attention. But what sets this fund apart from the others?
Many investors see it as a top pick, as reflected in its rapid growth. With $22.7 billion in assets under management, it broke records by surpassing the $10 billion mark faster than any other ETF to date.
The second-largest spot Bitcoin ETF, the Grayscale Bitcoin Trust ETF (GBTC), currently holds around $14.4 billion in assets. It is trading at approximately $48.37 per share, with a 52-week range of $34.31 to $65.66. Grayscale initially experienced strong growth, reaching a peak of $29 billion in assets before new crypto ETFs emerged.
On the other hand, the Fidelity Wise Origin Bitcoin ETF (FBTC) manages around $11.4 billion in digital assets. It is currently priced at about $52.88 per share, with a 52-week range from $33.77 to $64.42.
Among these leading ETFs, the iShares Bitcoin Trust continues to see faster inflows of new funds, indicating that its appeal extends beyond just an early launch advantage and is growing over time.
This isn’t surprising given that the iShares fund is managed by BlackRock (BLK), a giant in the investment services industry, providing a strong layer of financial security. While the fund currently benefits from an introductory rebate on its annual fee ratio, it is expected to align with its competitors when that advantage ends.
For those who feel comfortable with owning Bitcoin indirectly through an exchange-traded fund, the iShares Bitcoin Trust ETF presents a solid choice, backed by a reputable manager, making it a compelling option for gaining Bitcoin exposure.
Final Thoughts on Becoming a Millionaire with the iShares Bitcoin Trust ETF
Becoming a millionaire with the iShares Bitcoin Trust ETF is possible, but it won't be easy or quick. The key factors are how much you invest initially, how often you add to that investment, and how Bitcoin performs in the long run.
For instance, starting with $10,000 and assuming a 15% annual growth rate, it could take around 31 years to reach $1 million. By adding $200 each month to that initial investment, you could potentially achieve millionaire status in about 25 years. However, this all depends on Bitcoin maintaining a steady growth rate — which, given its volatility, is far from guaranteed.
The path to becoming a millionaire with this ETF requires a mix of patience, consistent investing, and a willingness to endure market fluctuations. It’s crucial to have a long-term perspective and an investment strategy that aligns with your risk tolerance and financial goals.
If you're ready for the ride and believe in Bitcoin’s future, the iShares Bitcoin Trust ETF could be part of your journey to substantial wealth — but it's not a get-rich-quick scheme.
Before I wrap up this blog, if you’re committed to leveling up your investing and trading game, here are three secrets and a free resource that have personally transformed my strategy—and they can do the same for you:
💰 SuperInvestor Club: Gain exclusive access to market insights that have given me a winning edge in my investments. You can grab a free 14-day trial if you sign up before August 31, 2024!
🎓 The Ultimate Stock Investing Programme: In just 7 days, this course taught me Buffett-style strategies that completely reshaped how I approach the market.
🚀 Professional Platform to Copy Master Traders for Consistent Growth: I’ve boosted my returns by following top traders and leveraging their proven strategies—this platform has been a game-changer.
📈 Free Resource: Unlock the trading advantage you need with Bullseye Trades! I subscribe to receive free daily stock and options trading ideas, featuring real-money trade alerts from renowned trading expert Jeff Bishop. Whether you’re a seasoned pro or just starting out, Jeff’s insights have guided me to smarter, more profitable trades. Don’t miss out—elevate your trading game today with Bullseye Trades!
These secrets and resources helped me reach new heights in my investing journey, and they can do the same for you. Take action now and level up your financial strategy! 💥
Thank you for joining us on this journey. Remember, the best investment you can make is in yourself. Happy investing!
Together, BuildWealthWise
ChuWei
P.S.: I hope you found value in today’s read. If you enjoy the content and want to support me, consider checking out today’s sponsor or buying me a coffee. Your support helps me continue creating quality content for you and the community. Thank you for being part of this journey!
Disclaimer: The content provided on this blog is for educational and informational purposes only and is not intended as financial, investment, tax, or legal advice. Investing and trading in the stock market involves risks, including the loss of principal. The views, thoughts, and opinions expressed in this blog are solely those of the author and do not reflect the views of any company, organization, or other group. Readers are encouraged to perform their own research and due diligence before making any financial decisions and actions based on the content. Neither the author nor the publisher is liable for any losses or damages arising from the use of the advice or information contained herein.