Bitcoin’s price remains volatile but continues to offer strong gains. Over the past year, Bitcoin has increased nearly 60%. Despite ups and downs, many believe its upward trend is not finished. For this reason, the Grayscale Bitcoin Trust ETF (GBTC), priced under $100 per share, stands out as an attractive investment.
Buying shares of the Grayscale Bitcoin Trust ETF provides a straightforward way to add Bitcoin to your portfolio. This ETF tracks the price of Bitcoin directly, and you can buy or sell it within a regular investment account. This means you don’t need to manage digital wallets or deal with complicated crypto exchanges.
Bitcoin is the original cryptocurrency and remains the largest by market value. Many consider it a hedge against inflation because it has a limited supply. While it is not practical for everyday purchases like buying a pizza, Bitcoin is often seen as digital gold.
Since the U.S. left the gold standard in 1971, government spending has increased steadily. The government finances its budget deficit by issuing Treasury bonds, which adds more dollars to the economy. This expansion of the money supply can lead to inflation, reducing the purchasing power of the U.S. dollar. As inflation rises, Bitcoin, which is priced in dollars, tends to benefit.
Earlier this year, former President Donald Trump and Elon Musk launched the Department of Government Efficiency (DOGE) to identify potential government spending cuts to reduce the deficit. However, the effort has largely fallen short. DOGE has suggested about $180 billion in savings, far below the initial $2 trillion target. Moreover, few of these proposed cuts have been approved by lawmakers.
Legislation such as the One Big Beautiful Bill Act, endorsed by Trump, includes only $9.4 billion in spending cuts but raises the debt ceiling by $4 trillion. The Congressional Budget Office projects that this bill will increase the federal deficit to 7% of GDP by 2026.
Given the likelihood of continued high government spending, investors may want to consider Bitcoin as part of a diversified portfolio to hedge against inflation and fiscal risk.
Trump has supported cryptocurrencies in the past, signing an executive order to create a Strategic Bitcoin Reserve for the federal government. His preference for reducing regulations could encourage innovation in this sector.
At the same time, major corporations are adopting digital currencies. Coinbase has partnered with American Express to launch a credit card offering Bitcoin cash-back rewards. Amazon and Walmart plan to introduce stablecoins to create alternative payment methods outside traditional networks.
The shift to a digital economy is expected to benefit Bitcoin, the leading cryptocurrency. Investing in the Grayscale Bitcoin Trust ETF is a simple way to gain exposure to this trend. Given the current landscape, this ETF is a compelling choice.
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