Bitcoin-Holding Companies ETF Up 26% in Three Months

Korea Economic Daily

Summary

The ETF investing in global companies holding Bitcoin, 'Grayscale Bitcoin Adopters' (BCOR), reportedly rose around 26% since its listing.
It is noted that ETFs have lower volatility compared to individual coin-related stocks, making them more attractive for investors.
ETFs investing in convertible bonds (CBs) of Bitcoin companies are also gaining attention as alternatives, as they can provide principal protection during stock price declines.

Lower volatility than individual coin stocks makes them attractive

As global cryptocurrency-related stocks experience rollercoaster-like fluctuations, there is advice to focus on Exchange Traded Funds (ETFs) rather than highly volatile individual stocks. 'Grayscale Bitcoin Adopters' (ticker BCOR) is an ETF that invests broadly across global companies holding Bitcoin. Since listing on the New York Stock Exchange last April, it has risen by around 26%. Its holdings include not only MicroStrategy, the company with the largest Bitcoin holdings in the world, but also Metaplanet—the biggest Bitcoin-holding company in Japan—and Mercado Libre, the top e-commerce company in Latin America and a cryptocurrency issuer, among other global crypto-related stocks.

ETFs that invest in the convertible bonds (CBs) of crypto-related companies are also seen as an alternative. Due to the nature of CBs, if the stock price drops, they offer principal protection like bonds, while if the price rises, they can be converted to stock to seek profit. Most of these CBs carry a 0% coupon rate, making it difficult to receive interest.

A representative ETF is 'Bitcoin Corporate Convertible Bonds' (BMAX), which is characterized by investing broadly in the CBs of companies such as MicroStrategy, GameStop, and Trump Media.

Suji Na, Reporter suji@hankyung.com

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