Bitcoin retains its appeal among venture capitalists
Jhe latest crypto selloff may have wiped out a considerable number of retail investors, but institutional investors are still curious about the long-term potential of the crypto market. Venture capitalists, in particular, are more interested in the main cryptocurrency, bitcoin.
Venture capital funds have been pouring into the crypto space when it comes to startups, but the capital has been spread out instead of concentrated in a certain niche. This umbrella approach could be akin to hedging bets in the crypto space with a lot of uncertainty swirling around, especially amid the latest selloffs.
“Venture capital firms have invested billions of dollars in crypto startups in recent years, however, their dispersal approach betrays a lack of deep expertise and a lack of certainty about winners likely to emerge,” said a Forbes article.
Despite this, one constant has been bitcoin. The leading cryptocurrency by market capitalization has seen better days after hitting a high of $69,000 in November 2021.
Bitcoin interest holds up despite sell-offs
Since the beginning of the year, bitcoin has fallen by around 60%, but it is still the benchmark cryptocurrency given the large number of options available in the market. The latest selloffs may have pushed some crypto projects to the wayside, but interest in bitcoin is still resilient.
Countries like Argentina have flocked to bitcoin to ease global inflationary pressures. This is still the case despite recent turmoil in the crypto market.
“But amid all the noise, bitcoin has always stood out from the crypto crowd,” the article adds. “It is well established and widely marketed – with both enterprise and state adoption. Despite the current decline, it has proven to be technologically stable, secure and unique over an extended period of time.”
Potential crypto investors also have options when it comes to bitcoin exposure. Using bitcoin futures as their primary focus, investors can use an exchange-traded fund (ETF) in the form of the ProShares Bitcoin ETF (BITO).
Security-conscious investors via online cryptocurrency exchanges can invest with confidence in a traditional market exchange using BITO – in this case, the New York Stock Exchange. The fund is also actively managed, putting management of the fund’s portfolio in professional hands.
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