Bitcoin and is it worth speculating a small portion
of one’s portfolio?
We would prefer IBIT (Canadian ETF version) for a CAD denominated Bitcoin ETF, or IBIT (US ETF version) for US dollars.
BTC is showing negative momentum right now, despite the rally in equities, and we think this could be caused by forced selling as a result of a liquidiation event that happened a month ago. Despite its near-term and intermediate-term moves, we know that historically BTC has made most of its gains in a short period of time, and this has historically been part of the allure of bitcoin. It is highly volatile, it can be uncorrelated with the broader markets (for better or for worse), and a high degree of patience is required with this name. For an investor that has a high risk tolerance, understands the asset class, and is willing to potentially see underperformance for the near and intermediate-term, we think it makes sense as part of a long-term holding.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in IBIT.