It’s no secret that Wall Street has been slow to warm up to Bitcoin (BTC). But that doesn’t mean that there’s no interest in the leading cryptocurrency on the world’s most famous street.
In fact, there are a number of ways to buy Bitcoin on Wall Street, though it may not be as simple as buying stocks or bonds.
One way to buy Bitcoin on Wall Street is through a digital currency exchange like Coinbase or Kraken. These exchanges allow investors to buy and sell cryptocurrencies like Bitcoin, Ethereum (ETH), Litecoin (LTC) and others.
They work similar to traditional stock exchanges, but with a few key differences.
First, because cryptocurrencies are not regulated by any government or financial institution, there is no central authority overseeing these exchanges. This means that they are subject to much higher hacking and theft risks.
Second, crypto exchanges are open 24/7, meaning that prices can fluctuate rapidly and without warning. Finally, because crypto assets are not yet widely accepted as payment methods, most exchanges do not allow users to directly buy goods or services with them.
Despite these risks, digital currency exchanges are growing in popularity and attracting more mainstream users. For those looking to buy Bitcoin on Wall Street, these exchanges may be the best option.
Another way to buy Bitcoin on Wall Street is through a company that offers BTC futures contracts. Futures contracts are legal agreements to buy or sell an asset at a set price at a future date.
They are often used by investors to speculate on the price of an asset, or to hedge against price fluctuations.
BTC futures contracts were first offered by the Chicago Mercantile Exchange (CME) in December 2017. Since then, they have been offered by several other exchanges including the Chicago Board Options Exchange (CBOE) and the NAsdaq Stock Market.
These futures contracts allow investors to bet on the future price of BTC without actually owning any of the currency.
While BTC futures contracts may be less risky than buying crypto directly from an exchange, they still come with some risks. For one, the prices of BTC futures contracts are often different from the spot price of BTC (the price at which BTC is currently trading).
This difference is due to the fact that futures prices are based on predictions about where the market will be at a future date, while spot prices reflect the current market conditions.
Another risk associated with BTC futures contracts is that they are often leveraged. This means that investors only have to put up a small amount of money in order to make a large trade.
While this can lead to bigger profits if things go well, it can also amplify losses if the market moves against the investor’s position.
Despite these risks, BTC futures contracts have become increasingly popular in recent months. In fact, they now make up a significant portion of overall Bitcoin trading volume.
For those looking for exposure to Bitcoin without having to own any of the currency directly, BTC futures contracts may be a good option.
There are also a number of ETFs that offer exposure to Bitcoin without investors having to hold any of the currency directly. ETFs are investment vehicles that hold a basket of assets and track an underlying index or benchmark.
They trade on stock exchanges like regular shares and can be bought and sold throughout the day.
The first Bitcoin ETF was launched in Canada in February 2018 and was quickly followed by several others around the world including in Sweden, Switzerland and the United States. These ETFs offer investors exposure to Bitcoin without them having to hold any of the currency directly or worry about the risks associated with digital currency exchanges or futures contracts.