BITQ ETF

Concentrated in crypto-related companies, Bitwise Crypto Industry Innovators ETF offers highly speculative exposure to Bitcoin without direct crypto investment. Despite high risks, BITQ's current discount to Bitcoin may present an opportunity for risk-tolerant investors if Bitcoin hits another significant milestone. An abundance of other crypto ETF options makes it hard to recommend the BITQ ETF except for a specific, risky trade idea.

Bitcoin has been riding the wave of crypto-friendly Donald Trump's win, nearing the $90,000 level.

BITQ ETF's top holdings primarily burn cash and face risks of dilution or insolvency. Recent changes in holdings haven't mitigated these risks; new additions like TeraWulf, Core Scientific, and Cipher Mining still struggle with negative cash flows. Incumbent miners continue to burn cash, while Coinbase and Galaxy remain the strongest players with positive free cash flows.

After flirting with but ultimately missing all-time highs earlier in June, bitcoin stumbled last week. Experienced cryptocurrency investors know one week usually doesn't make or break bitcoin's fortunes.

Bitcoin and Ethereum have seen significant rallies this year, while many crypto-adjacent stocks have languished. Investors may be interested in the Bitwise Crypto Industry Innovators ETF as a way to gain long-term exposure to equities benefiting from crypto price increases. In my view, the fund may be too reliant on Bitcoin mining stocks - which I view as generally poor long-term investments.

Coinbase, the biggest regulated cryptocurrency broker, announced on Tuesday that it is teaming up with Lightspark to incorporate bitcoin's Lightning Network in order to improve cryptocurrency payment processes.

The quadrennial bitcoin halving arrives next month and it's widely expected to be a catalyst for bitcoin prices. Some say it already has been.

If the last year or two have taught investors anything, it's that alts can play a big role in portfolios. As recently as 2022, bonds struggled amid significantly low interest rates, with their role as a contrast to stocks weakened.

The greenback???s subdued future expectations, driven by different economic factors, increase the need to hedge and diversify one's portfolio.