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If there’s one commodity that’s on every investor’s mind as of late, it has to be Bitcoin. Bitcoin has been making huge waves in both the market and the news. Adding to the excitement is the recent introduction of Bitcoin ETFs, including one that recently amassed over 200,000 BTC in assets — the iShares Bitcoin Trust (IBIT), writes Jim Woods, editor of The Deep Woods.

With high inflation a continuing threat in 2024, hedge investments such as Bitcoin have been experiencing a rebound, with some experts speculating that its value could reach up to $100,000 during the next year.

Opened in January of this year by BlackRock (BLK), IBIT has already carved out a comfortable spot for itself in the market. IBIT is a passively managed fund that seeks to track the spot price of Bitcoin, with the intention of providing investors with easy access to the cryptocurrency instead of worrying about the hassle of acquiring, holding, and trading it directly.

IBIT is backed by Bitcoin held in what is known as “cold storage.” Cold storage is a safeguarding method that generates and stores private keys corresponding to the trust’s Bitcoins offline, making them more resistant to hacking.

The trust’s holdings are valued daily based on the CF Benchmarks Index, which tracks the once-a-day benchmark rate of Bitcoin’s price in US dollars. The index aggregates the trade flow of several Bitcoin platforms during its observation window with a focus on transactions the index provider finds relevant.

The fund has an expense ratio of 0.12% and $13.58 billion in assets under management. Plus, 100% of the fund’s holdings are in Bitcoin, making the trust’s sole investment focus on the cryptocurrency. This is excellent for investors looking for an easy way to invest in Bitcoin.

As of March 11, the trust is up an astounding 51.4% in the past month. Since the ETF launched recently, IBIT does not yet have a three-month or a year-to-date performance listed.

My recommended action would be to consider buying IBIT.

About the Author

Jim Woods is a 20-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor. He is the editor and investment director of Intelligence Report, Successful Investing, Bullseye Stock Trader, High Velocity Options, and The Deep Woods e-Letter (Mr. Woods also co-directs the Fast Money Alert trading service, alongside Dr. Mark Skousen).

The independent firm TipRanks has rated Mr. Woods the #1 financial blogger in the world (out of more than 6,000 competing analysts), and has been ranked inside the Top 12 globally for more than a decade. His books include co-authoring, Billion Dollar Green: Profit from the Eco Revolution, and The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse. 

Mr. Woods formerly worked with Investor's Business Daily founder William J. O'Neil, helping to author training courses in the CANSLIM stock-picking methodology. He is known in professional and personal circles as "The Renaissance Man," because his expertise includes such varied fields as composing and performing music, western horsemanship, combat marksmanship, martial arts, auto racing, and bodybuilding.

Mr. Woods holds a BA in philosophy from the University of California, Los Angeles, and is a former U.S. Army paratrooper. A self-described "radical for capitalism," he celebrates the virtue of making money from his Southern California horse ranch.

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