It’s hard to get rid of the greenback with interest rates in the U.S. rising the way they have thanks to the Federal Reserve’s hawkish policies. Despite the recent pullback, bitcoin continues to outperform other currencies around the world.
Bitcoin is not only outperforming emerging market currencies. It also affects the economic powerhouses in developed countries like Great Britain and China.
According to a Fortune magazine article, Bitcoin has outperformed the trend of falling currencies like the British Pound and Chinese Yuan. It has grown 6.3% in the past seven days, flirting with $20,000 and even growing as high as $6,000. Global markets have been affected by macro conditions such as rising inflation and fiscal uncertainty. Although Bitcoin has generally complied with financial swings over the past week, its strong performance in the last week has shocked traders and highlighted the turbulent times.
As Bitcoin matures, Bitcoin has shown less volatility in the past. Influx of institutional capital has helped to keep Bitcoin relatively stable compared to its early adoption years.
This has led to an asset that is more in line with traditional markets. Bitcoin is showing more correlation with stock markets, especially this year, though it’s still far from its early volatility days.
Tweeted Sven Henrich (founder of NorthmanTrader), “You know that we have reached a unique moment in history when #Bitcoin suddenly becomes less volatile than fiat currencies,”
We are at a moment in history where #Bitcoin is suddenly less volatile than fiat currencies.
– Sven Henrich (@NorthmanTrader) September 26, 2022
How to Get Actively Managed Bitcoin Exposure
The ProShares Bitcoin ETF is an option for investors who wish to have exposure to bitcoin but avoid investing through a cryptocurrency exchange. This fund tracks the price movements of bitcoin on a regular market exchange and provides exposure to futures.
BITO played a significant role in bringing bitcoin to its November record high. It was the first U.S. exchange-traded fund (ETF), to concentrate on the most popular cryptocurrency. Although crypto purists might be skeptical of a futures ETF it is possible for investors seeking alternative exposure.
The fund is actively managed giving investors peace of mind knowing that their investments are in the capable hands of experienced portfolio managers. Bitcoin is a volatile asset. Active management can adjust portfolios as needed to market conditions.