How to Invest in Bitcoin Without Buying Crypto!

Crypto Robot

Want to invest in Bitcoin without the stress of managing wallets or worrying about hacks? In this video, we break down the best ways to invest in Bitcoin without actually buying cryptocurrency — from Bitcoin ETFs and trust funds to blockchain equities and crypto-related stocks.  👉 Subscribe for daily alpha on crypto market trends, bold Bitcoin predictions, and altcoin gems that could 10x your portfolio! – https://www.youtube.com/channel/UCpjN8bNE-CoAgpfMatghM9g  📧 Email: cryptorobothelp@gmail.com  💰 Affiliate Links  Sofi Checking & Savings – Get $25 free ➝ https://www.sofi.com/invite/money?gcp=16a53d0f-b4b2-441d-9100-cfb506305260&isAliasGcp=false  Sofi Investing – Free $25 in stock ➝ https://www.sofi.com/invite/invest?gcp=ab31edd8-701e-4109-9225-51b41e35d246&isAliasGcp=false  Coinbase Exchange – Earn up to $300 BTC ➝ https://coinbase.com/join/YPUQLCY?src=referral-link  Tracking Tools – CoinGecko | CoinMarketCap  Trading Tools – Get $15 off TradingView ➝ https://www.tradingview.com/pricing/?share_your_love=cryptonextsteps  #Bitcoin #Crypto #BitcoinETF #CryptoInvesting #Blockchain #Finance #Money #Wealth #Investing #CryptoNews #BTC #BitcoinInvesting #FinancialFreedom #Altcoins #DeFi

Transcript

00:00welcome back to the deep dive today we're going to tackle something really interesting uh a kind

00:10of financial puzzle how do you get exposure to bitcoin one of the well most talked about assets

00:16out there without actually getting tangled up in the crypto weeds that's exactly it i mean bitcoin

00:21is huge now right people call it digital gold a new store value even a hedge but let's be honest

00:27for most regular investors people using traditional brokers actually buying and holding bitcoin

00:33it's still a pretty big headache oh it's a hurdle for sure you've got the whole digital wallet thing

00:37seed phrases you can't lose worrying about exchanges getting hacked and you know that constant low-level

00:43anxiety about self-custody like if you mess up your private keys poof your money's just gone no bank to

00:49call right that fear is a real barrier so our mission today for you the learner listening in is to kind of

00:55be your guides through this we've dug into a bunch of sources and we found five uh structured totally

01:01legitimate regulated ways you can get significant bitcoin exposure without touching a token without

01:06ever managing a crypto token directly no wallets to download no private keys to stress over okay let's

01:13unpack that because um this isn't just theory anymore is it something's really shifted why is now

01:18like 2024 onwards the moment this whole indirect investing thing is taking off it really comes down

01:25to one thing institutional validation wall street traditional finance you know trad fi they're not

01:32just kicking the tires anymore they are actively building well a massive bridge straight into the

01:38crypto world a bridge yeah a well-regulated one the idea that bitcoin was just for like tech

01:42enthusiasts or cypherpunks that's kind of fading fast big money institutional capital they want in

01:49and now they're regulated products that let them so say i'm listening maybe i run a small business

01:54manage my family's investments or i'm just trying to figure out my retirement savings what are the

01:57actual like tangible benefits of going this indirect route versus you know the wild west of holding it

02:02myself well first off you get professional grade infrastructure and it's accessible you immediately avoid

02:08those big security risks the compliance headaches of direct ownership but maybe the biggest thing

02:14flexibility and diversification how so you can slot bitcoin exposure right into your existing accounts

02:20your ira your 401k your normal brokerage account places you already understand and trust

02:26ah okay so it brings bitcoin into the fold tax advantages and all exactly makes it feel like well

02:34just another asset class you can hold alongside stocks and bonds yeah the safety net of traditional

02:38markets meets the let's say potential upside of digital assets and that legitimacy that regulatory green light

02:46we saw especially with the etfs it wasn't just opening a door it was more like knocking down a

02:51wall right suddenly bitcoin is on the table for serious financial players it really changed the game

02:55made it a viable asset class for global finance okay so option number one has to be the big one the

03:00one everyone's talking about the spot bitcoin etf seems simple but uh let's get specific what exactly is

03:06it what are you buying beyond just a ticker symbol right so when you buy a share of a spot bitcoin etf

03:13think black rocks ibt or fidelity's fbtc those are the big ones you're buying a security that trades

03:19on a major stock exchange just like apple or google stock okay simple but here's the crucial part

03:26by regulation that etf share is backed by real bitcoin the fund actually holds the underlying bitcoin

03:33in secure custody on your behalf so if bitcoin goes up two percent the etf share price should theoretically

03:40go up pretty much two percent too minus any small fees i guess that's the idea yeah minimal tracking

03:44error and the beauty of it is the sheer convenience wrapped in that regulatory blanket

03:49use your existing fidelity account your schwab account whatever no new apps no weird crypto exchanges

03:53exactly you skip the whole wallet setup private key anxiety the sometimes sketchy world of

03:59unregulated exchanges it just plugs right into your normal financial life now you mentioned custody

04:04if i'm giving up holding my own keys where is this bitcoin actually kept because you know

04:08trust is a big issue here that's central to the whole institutional buy-in these big etf providers

04:13they don't just like stick the bitcoin on a usb drive in the office they partner with established

04:20heavily regulated institutional grade custodians like coinbase i hear their name a lot coinbase custody

04:26is a major player yeah yeah they provide the secure vault essentially for many of these etfs we're

04:32talking multi-layer security cold storage meaning offline storage comprehensive insurance

04:38all designed to meet the standards expected by well multi-billion dollar institutions so the risk

04:44the burden of keeping it safe shifts from my laptop to their institutional vault precisely and that level

04:51of security and regulation is what makes them eligible for retirement accounts like iras and 401ks

04:56that was almost impossible before yeah that's a huge deal getting bitcoin into tax advantage accounts

05:02legitimizes it for long-term planning not just quick trades it totally changes the conversation

05:08potential retirement asset okay but let's talk impact because this wasn't just a trickle of interest

05:12was it the floodgates kind of opened when these got approved oh it was staggering unprecedented

05:17really after the sec gave the green light in was it january 2024 the money that poured in was

05:24immediate and massive our sources show over 20 billion dollars flowed into these spot etfs within

05:30just the first few months 20 billion yep more than anyone really expected for a new etf launch

05:36way more and that's coming from traditional investment channels right not just existing

05:40crypto money moving around primarily yes regulated traditional capital and think about what that

05:46means it's pure supply and demand all that money flowing in forces the etf managers blackrock fidelity

05:52to go out and buy equivalent amounts of actual bitcoin on the open market to back the shares they're

05:57issuing ah so the etf demand directly creates buying pressure for bitcoin itself directly and that

06:03sustained large-scale institutional buying that's what fueled that big rally we saw pushing bitcoin

06:09past seventy thousand dollars the link is undeniable now etf flows are a major force driving the bitcoin

06:14price okay i gotta push back slightly though it sounds easy but nothing's free you give up self-custody

06:21you avoid the tech headaches but there's a cost right a fee and doesn't that kind of go against the

06:26original bitcoin idea of cutting out middlemen that's a fair point and important for you listening to

06:31understand yes there is a cost these funds charge management fees they're generally small usually

06:37in the uh 0.20 to 0.25 per year range quarter of a percent annually okay it's not huge but it is a

06:46cost however you have to weigh that against the potential cost of doing it yourself the risk of

06:50getting hacked the stress the learning curve and crucially the risk of losing everything if you

06:55mismanage your piece so for most people coming from traditional finance that small fee probably

07:00feels like a reasonable price for institutional security and simplicity that's how many see it

07:05yeah it's the price of delegating the complexity and the risk it's a trade-off you gain accessibility

07:10and safety but you embrace a degree of centralization that's a recurring theme here definitely something to

07:15keep in mind all right let's shift gears to option number two this is uh quite different it's less

07:21about directly tracking bitcoin and more about using the stock market itself buying shares in companies

07:28that hold a ton of bitcoin exactly we call this the buying the treasury proxy strategy the idea is simple

07:34you invest in publicly traded companies that have made a strategic decision to hold significant bitcoin

07:40on their balance sheet usually as a primary reserve asset so buying their stock gives you sort of

07:46indirect exposure to bitcoin's price swings indirect and often amplified because the company's stock

07:52price tends to react not just to the bitcoin price but also to the market's perception of their strategy

07:57their debt their core business it gets interesting and the absolute king of this strategy the one

08:03everyone points to is micro strategy mstr oh absolutely micro strategy basically invented this playbook

08:09released perfected it at scale they've been incredibly aggressive accumulating bitcoin relentlessly

08:14they hold what over 200 000 btc now worth i mean north of 14 billion dollars last i checked so for a

08:21traditional investor buying mstr stock isn't really about buying a software company anymore it's become

08:27the most concentrated way to bet on bitcoin through the stock market outside of an etf okay let's spend a

08:34bit of time on this leverage proxy idea because this is where the numbers get kind of wild right the stock

08:39moves way more than bitcoin sometimes this is the key thing to grasp why does mstr stock often jump

08:46say 3x when bitcoin only jumps 40 there are a couple of reasons first leverage microstrategy often finances

08:55its bitcoin buys using debt specifically convertible notes meaning they borrow money effectively betting they

09:02can pay it back easily if bitcoin's price goes up potentially by issuing more stock later pretty much

09:07they're using borrowed funds to acquire more bitcoin so if bitcoin's price skyrockets the value of

09:13their holdings explodes relative to that they took on that leverage acts like a magnifying glass on the

09:17gains okay leverage makes sense what's the second factor it's market perception or what you might call

09:22a premium stock market doesn't really value mstr just as a software business plus its bitcoin holdings

09:29it sees it as a unique aggressive bitcoin investment vehicle so the price reflects excitement about future

09:35bitcoin gains exactly investors often bid the stock up beyond the current value of its assets

09:41anticipating future appreciation or more aggressive buying it trades on momentum and sentiment as much

09:46as fundamentals and that explains that crazy example from early 2024 bitcoin rallies 40 mstr stock triples

09:54that's serious leverage it is but and this is a big but leverage cuts both ways hard when bitcoin drops

10:01mstr stock tends to fall much further and faster because the premium evaporates and suddenly that

10:06debt looks riskier precisely fear replaces greed the leverage works in reverse and concerns about their

10:12ability to service the debt mount if the asset value tanks so it's definitely high risk high reward neatly

10:18packaged in a nasdaq ticker not for the faint of heart understood now mstr is kind of an extreme example

10:25putting almost everything into bitcoin what about other companies where bitcoin is important but may be

10:30more integrated into their actual business not just sitting on the balance sheet yeah there are other

10:35ways to get exposure through stocks you could look at companies weaving bitcoin into their services tesla

10:40tsla for instance they've held bitcoin reserves bought some sold some it fluctuates so maybe less of a pure

10:48bitcoin play than mstr definitely less direct more influenced by their core car business and elon musk's

10:55latest tweets frankly then you have companies building the infrastructure like block looks

11:00a queue right block formerly square they're deep into bitcoin through cash app letting millions buy

11:05sell and even use bitcoin investing in block is more a bet on bitcoin's growing utility and mainstream

11:11adoption in payments and finance okay so it's a bet on the ecosystem growing yeah and then there's

11:15coinbase coin in we mentioned them as a custodian for the etfs right the plumbing exactly buying coin stock

11:23isn't direct bitcoin exposure but it's a bet on the overall health trading volume and institutionalization

11:29of the entire crypto market their revenue comes from transaction fees custody services for those big

11:35etfs they are the infrastructure in many ways investing in them is betting on the pipes themselves

11:41makes sense different flavors of indirect exposure so our next couple options three and four

11:46zoom in on the companies actually building and running the nuts and bolts of the network

11:50this is where things get uh maybe a bit more specialized let's get into option three then

11:55this one sounds potentially exciting but also maybe kind of risky bitcoin mining stocks the company is

12:01actually creating the new bitcoin so explain how miners like say riot marathon or hut 8 actually make

12:08money and how does that connect to bitcoin's price okay so miners are essentially the bookkeepers

12:12and security guards of the bitcoin network they run powerful specialized computers asics to solve complex

12:18math problems when they solve one they get to validate a block of transactions and add it to the

12:23blockchain and for doing that work they get rewarded in two ways transaction fees paid by users and more

12:29importantly newly created bitcoin this is the block reward so companies like riot mora clsk het their

12:38core revenue stream is earning bitcoin directly ah so if the price of bitcoin doubles the value of the bitcoin

12:44they earn instantly doubles too exactly their revenue is directly tied to the btc price this makes their

12:50stocks naturally leveraged plays on bitcoin when bitcoin booms their potential profits can explode but

12:56unlike microstrategy just holding bitcoin miners have massive real world costs right power bills

13:02warehouses full of computers that sounds fundamentally different it's a completely different beast huge

13:07operational complexity and risk yes they benefit massively when bitcoin goes up but they face enormous

13:12headwinds first energy costs they need vast amounts of cheap reliable electricity power prices can make

13:18or break them okay energy is a big one what else second hardware those specialized asic miners become

13:25obsolete fast there's a constant race to buy the newest most efficient chips if they fall behind their

13:31profitability plummets and third maybe the trickiest part is the dynamic between their own computing power

13:38their hash rate and the network's overall difficulty whoa okay hash rate difficulty why do those matter to an investor

13:46because the bitcoin network is designed to produce a new block roughly every 10 minutes

13:50no matter how many miners are competing if the bitcoin price surges more miners jump online increasing the total global

13:57hash rate more competition right so the network automatically makes the math problems harder

14:02the difficulty increases to keep that 10 minute block time steady this means each individual miner even

14:08if they keep their machines running starts earning less bitcoin over time for the same effort unless they

14:13constantly upgrade or expand faster than the competition it's like a treadmill they can't get off yeah and

14:18then you have the halving the halving is the scheduled event roughly every four years where the bitcoin

14:23block reward gets cut in half instantly it's a massive supply shock baked into the code which must crush the

14:28miners who aren't super efficient absolutely post having only the leanest operations with the cheapest

14:34power and best machines survive and thrive the potential upside is huge we saw mining stocks out

14:40reform bitcoin by like 60 120 in that 2024 rally but the dem side the downside is bankruptcy or heavy

14:48delusion if they can't manage costs or if bitcoin's price falls they are incredibly volatile when bitcoin

14:54pulls back these stocks often crash much harder you're betting on their operational skill just as

14:59much as on bitcoin itself definitely a high octane play requires real conviction and tolerance for wild

15:05swings okay so if betting on a single miner feels too risky but you still like the idea of investing

15:10the underlying infrastructure growth that brings us to option four diversified blockchain etfs that sounds

15:16well safer it's definitely designed to be a broader less concentrated approach it's for investors who

15:22believe in the whole ecosystem the entire blockchain economy rather than trying to pick the winning

15:28mining company or the company with the biggest bitcoin stash it spreads the risk so what's actually in

15:33these etfs how do they diversify well you have funds like blok that's amplifies transformational data

15:40sharing etf or bkch from global x or dapp from vanek they hold a mix of companies across the digital asset

15:47space not just bitcoin related stuff not exclusively no they aim for a wider lens on blockchain technology

15:54so if you peek inside say blok's holdings you'll find a blend give us an idea like what you'll likely

16:00see some mining stocks sure like marathon to get that direct production exposure but you'll also see

16:05key infrastructure players like coinbase the exchanges the custodians you might see tech giants like nvidia

16:11who make the chips essential for mining and ai okay so the hardware suppliers too right and maybe even

16:16companies like microstrategy for that balance sheet exposure the goal is to capture the growth of

16:20the whole sector from different angles so investing in one of these is less a bet on bitcoin's price

16:26tomorrow and more a bet that blockchain tech itself is going to be transformative for finance data

16:33whatever and lots of companies involved will benefit that's the core idea you're investing in

16:38the systemic shift the overall trend of digital transformation you figure a rising tide will lift most boats

16:45in this sector and you don't have to guess which boat will float highest or sink first

16:49it's a diversified bet on the future plumbing of the digital economy got it a more balanced if

16:54perhaps less explosive way to play the theme okay moving on to option five now we're getting into

16:59slightly more niche territory these are products often used by more active traders or institutions

17:05offering bitcoin exposure through traditional financial instruments but maybe not ideal for everyone right

17:10we established the spot etfs option one are kind of the go-to for long-term buy and hold in your ira

17:16so what's different about these other products what's the catch the main example here is something

17:20like bito the pro shares bitcoin strategy epf the key difference is it's not a spot etf it doesn't

17:27hold actual bitcoin it doesn't what does it hold then it holds bitcoin futures contracts these are agreements

17:34to buy or sell bitcoin at a set price on a future date they trade on regulated exchanges like the

17:39chicago mercantile exchange cme okay futures why would that be less suitable for just buying and holding

17:46long-term it boils down to something called contango and roll costs see futures contracts expire

17:54so for an etf like bdo to maintain constant exposure it has to continually sell the contracts that are

17:59about to expire and buy new contracts with later expiration dates this is rolling the position okay

18:05standard futures management what's the problem the problem often arises when the market is in contango

18:11that's when the price of futures contracts further out in time is higher than the price of contracts

18:15expiring soon or the current spot price so when the etf rolls its contracts it's effectively selling

18:21lower priced contracts and buying higher priced ones just to stay invested month after month this

18:26creates a small but consistent drag on performance it costs money just to maintain the exposure ah so

18:32the etf price tends to lag behind the actual bitcoin spot price over time exactly that roll yield

18:38decay can be significant especially over longer holding periods so while bit2 was important it was

18:43the first u.s bitcoin etf allowed and it's useful for traders wanting short-term exposure or hedging tools

18:50it's generally not the best choice for someone wanting to park money in bitcoin for years in their

18:55retirement account the spot etfs option one are structurally better for that gotcha so be able to

19:01a eels trader tool spot etf equals long-term holder tool makes sense bonus crypto integrated fintechs

19:10indirect access okay let's talk about a bonus approach this one feels like it taps into the

19:14bigger picture of adoption investing in the big fintech companies that are increasingly playing in the

19:19crypto sandbox yeah this is more about betting on the on-ramps and off-ramps as the core infrastructure

19:24like the etfs makes crypto more stable and accessible where are mainstream users actually

19:29going to interact with it often it's through apps they already use like robin hood adding more coins

19:33or sofi exactly companies like sofi robin hood and especially paypal they are integrating digital

19:40assets deeper and deeper into their platforms paypal's move with their stable coin pyusd felt like a big

19:47step it was huge a regulated dollar backed stable coin issued by a global payment giant that signals

19:54they see a massive future in facilitating payments and value transfer using digital rails they want

20:01to be a core part of that new economy so the play here isn't directly betting on bitcoin's price going up

20:07but rather betting that these huge established fintech players will successfully capture a lot of the new

20:13users and transaction volume coming into crypto precisely you're investing in the platforms that

20:18are bridging the gap between traditional finance and the emerging digital asset world their stock

20:23price should benefit if they can successfully monetize this wave of adoption through trading fees new

20:28services payment flows so it's an indirect bet on the growth and mainstreaming of the whole space

20:34channeled through familiar regulated companies correct it's scalable exposure to the digital finance

20:39trend itself rather than a specific assets price hashtag synthesis and takeaways okay we've covered

20:46a lot of ground five distinct strategies plus that fintech bonus all designed to give you bitcoin exposure

20:53without the direct crypto hassle let's try and synthesize this how should you the listener think about

21:00choosing the right path based on say risk tolerance right matching the strategy to your goals and comfort level is key

21:06we can break it down pretty clearly all right let's start low risk say i want the safest most regulated route

21:12i prioritize simplicity low fees ideally and i definitely want it to be eligible for my ira or 401k for the long haul

21:19what's the move unquestionably these bought bitcoin etf like ibid or fbtc that's what they're built for

21:25regulated custody easy trading liquid retirement account friendly full stop okay any other lowish risk options well if you want

21:32broader exposure to the whole sector rather than just bitcoin's price and you're still fairly conservative

21:37a diversified blockchain etf like blok could fit you spread the risk across miners infrastructure tech

21:44makes sense now middle ground moderate risk i'm okay with more volatility i want the potential for returns

21:52that beat bitcoin in a bull market but i still want the convenience of buying a stock on nasdaq or nyse

21:58that points towards public companies holding lots of bitcoin micro strategy mstr is the prime example

22:04you're taking on the stock specific risks their debt strategy market sentiment swings but the payoff

22:10can be significantly amplified returns compared to just holding bitcoin or an etf got it mstr is the

22:16leverage stock play and the high risk end of the spectrum i want maximum potential upside i can stomach

22:22extreme volatility and i understand there are external factors like energy costs or tech changes involved then

22:26you're probably looking at bitcoin mining stocks riot mara clsk etc they offer the highest leverage to

22:33bitcoin's price driven by their mining operations but it requires nerves of steel and a good understanding

22:38of their operations right not just the bitcoin price absolutely you need to be comfortable with their

22:43operational risks the impact of the halving energy markets it's the highest potential reward but also

22:49carries the highest risk of significant loss or even failure okay so the big picture takeaway here the thing we

22:55really want you listening to remember is that the old barriers to getting bitcoin exposure they're

23:00basically gone now at least for traditional investors totally dismantled you can build serious meaningful

23:06exposure to bitcoin whether you see it as a speculation a diversification tool or part of your retirement

23:11plan all within your existing regulated brokerage account no keys no crypto jargon no stress but getting hacked

23:18and looking even bigger picture what's the fundamental driver here that's pushing crypto towards becoming truly

23:24mainstream truly adopted globally it really comes down to that institutional embrace

23:29particularly the reliance on regulated custody the fact that trillions of dollars could potentially flow

23:34through ets managed by blackrock custody by coinbase that builds an incredibly robust trusted bridge so

23:42relying on these established regulated financial players is actually the key step it seems paradoxical maybe but

23:47yes that dependency on trusted institutional infrastructure is what's transforming bitcoin from a niche digital

23:55curiosity into something that can be seamlessly integrated into global finance portfolios it makes

24:01it accessible and investable for everyone hashtag tag outro you know this whole shift this massive success of

24:07spot etfs and companies like microstrategy basically acting as bitcoin proxies it does raise a kind of

24:13fundamental maybe philosophical question about crypto's original goals yeah it's a fascinating tension

24:19isn't it bitcoin was born from this idea of decentralization getting away from intermediaries censorship

24:24resistance but now its biggest growth engine seems to be these highly centralized regulated wall street

24:30products funneling potentially trillions of dollars through established giants so the provocative thought

24:36for you to chew on is this if bitcoin's path to global dominance relies so heavily on these centralized

24:41custodians and traditional finance structures does that ultimately strengthen or undermine the core

24:46decentralist principles it started with it's a complex irony definitely something worth thinking

24:51about as you figure out your own approach to this space well that brings us to the end of today's deep

24:56dive on navigating the world of bitcoin investment without actually buying crypto we really hope breaking

25:02down these sources and strategies was helpful yeah absolutely and look if you found this analysis useful

25:08if it gave you some new perspectives or actionable ideas for your own portfolio we genuinely rely on

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