Cathie Wood isn’t afraid to make bold predictions.
Back in early 2018, the owner of Ark Invest said Tesla shares would go from $300 to $4,000 within five years — a potential upside of around 1,200%.
Yet Tesla hit the target early. This January, Tesla shares surged past the $800 mark, or $4,000 on a split-adjusted basis.
Pretty astounding, but Tesla may not be Wood’s most bullish call at the moment. Last month, she told CNBC that the price of Bitcoin could soar to half a million dollars in five years.
“If we’re right and companies continue to diversify their cash into something like Bitcoin, and institutional investors start allocating 5% of their funds in Bitcoin [...] we believe the price will be ten-fold what it is today. Instead of $45,000, over $500,000,” she said.
Bitcoin is already moving in that direction; the cryptocurrency trades at around $62,000 at the time of this writing.
Here are a couple ways to play the crypto boom, even if you’re just dabbling with some of your “spare change.”
Wood herself is offering a new way to invest in cryptocurrency. In September, Ark Next Generation Internet ETF tweaked its prospectus to include exposure to Bitcoin via Canadian ETFs.
The first bitcoin ETF on the New York Stock Exchange just started trading last week, but Canada has been ahead of the U.S. for a while. Several Bitcoin ETFs launched in Canada this year, including Purpose Bitcoin ETF, 3iQ CoinShares Bitcoin ETF, CI Galaxy Bitcoin ETF and Evolve Bitcoin ETF.
In the U.S., the debut of the ProShare Bitcoin Strategy ETF was arguably a major catalyst behind Bitcoin’s latest rally. The fund holds bitcoin futures contracts that trade on the Chicago Mercantile Exchange.
Investors who want exposure to the crypto market can invest in these ETFs, but you can also buy Bitcoin directly. Some investing apps allow you to buy both cryptocurrencies and ETFs commission-free.