Three Cryptocurrency Investments to Buy as Bitcoin Hits a Five-Month Low

Paul Dykewicz

Three cryptocurrency investments to buy can be obtained at a discount in the wake of a recent five-month low in the price of Bitcoin.

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The three cryptocurrency investments to buy may particularly interest bargain hunters who like the idea of purchasing equities tied to Bitcoin after its price plunged 27.16% from a high of $73,750.07 on March 14 to a low of $53,717.38 on July 5. Even after a modest rise in the price in the following days, Bitcoin closed on Monday, July 8, down 22.7% since mid-March.

One of the key reasons for the recent drop in Bitcoin prices stems from the sudden return of about $8 billion in the cryptocurrency to creditors of a defunct Japanese cryptocurrency exchange called Mt. Gox. Other moves that hurt the price of Bitcoin include the German and U.S. governments liquidating some of their holdings in the cryptocurrency.

Three Cryptocurrency Investments to Buy: BITO

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One way to invest in Bitcoin without buying the cryptocurrency directly is through an exchange-traded fund (ETF) like ProShares Bitcoin Strategy ETF (NASDAQ: BITO). The ETF announced its monthly dividend, and it was another “whopping” $1.50 per share, according to the TNT Trader investment newsletter of Mark Skousen, PhD, a presidential fellow in economics at Chapman University, and his son Tim Skousen.

The elder Skousen, rated one of the top 20 most influential living economists by SuperScholar.org, also writes the monthly Forecasts & Strategies investment newsletter that focuses on stocks and funds. The TNT Trader advisory service that he runs with his son Todd provide both stock and option recommendations, as well as cryptocurrency investments.

“This has been an unexpected benefit of owning BITO at this time period, as we never intended to find a Bitcoin income play like this,” according to TNT Trader. “But since our recommendation, we have collected $6.82 a share in five months with a buy-in price of $26.91.”

If BITO sustains these kinds of payouts, it will have a dividend yield of 60%, according to the July 2 edition of TNT Trader. Even if the dividend payouts are suspended, BITO would end the year with a yield of 25%.

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“That’s a mind-blowing yield for any ETF,” according to TNT Trader.

Ben Franklin scion Mark Skousen, who heads TNT Trader, talks to Paul Dykewicz.

The United States added to the downward pressure on Bitcoin when it announced plans to sell nearly 4,000 bitcoins that were seized due to the conviction of a drug dealer, TNT Trader informed its subscribers. However, Bitcoin has absorbed that added volume well and will start to move back up, TNT Trader wrote.

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Chart courtesy of www.stockcharts.com.

Three Cryptocurrency Investments to Buy: BITO’s Backers Multiple

The Micro-Cap Stock Trader advisory service, led by seasoned Wall Street veteran Bryan Perry, is another advisory service that is recommending BITO. The fund invests in Bitcoin futures and not the coins themselves, he explained.

“Though BITO doesn’t track Bitcoin exactly, and the market cap of $2.95 billion is the smallest and most liquid asset that fits into our micro-cap universe, the correlation is surprisingly good and worthy of a long-side trade,” Perry advised his Micro-Cap Stock Trader subscribers.

In addition, because BITO trades futures on Bitcoin, the fund is able to generate sizeable monthly dividends from the spread it captures from its trades. Micro-Cap Stock Trader subscribers and other investors in BITO have been collecting the monthly dividend payouts since entering the trade. The enticing dividend yield has become a compelling reason to stick with the fund amid the ups and downs of Bitcoin’s price.

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Bryan Perry leads the Micro-Cap Stock Trader advisory service.

Another backer of BITO is Jim Woods, a former Army paratrooper who recommends it in the Income Multipliers portfolio for his Successful Investing newsletter subscribers. As a seasoned investment guide, Woods has developed a special interest in cryptocurrency investing and follows BITO closely for his Successful Investing subscribers.

Jim Woods leads Successful Investing and co-heads Fast Money Alert.

Three Cryptocurrency Investments to Buy: BLOK

In the July 8 weekly update of Mark Skousen’s Forecasts & Strategies investment newsletter he updated his recommendation of a crypto/blockchain exchange-traded fund (ETF), dividend-paying Amplify Transformational Data Fund (BLOK). The fund has “survived the storm” much better than Bitcoin and is up more than 21% this year, Skousen wrote to his Forecasts & Strategies subscribers.

Chart courtesy of www.stockcharts.com.

BLOK’s top holdings include Galaxy Digital (GLXY), MicroStrategy Inc. (NASDAQ: MSTR), Coinbase Global (NASDAQ: COIN), Robinhood Markets Inc. (NASDAQ: HOOD), Core Scientific (NASDAQ: CORZ) and PayPal (NASDAQ: PYPL). The purchase of the fund gives shareholders exposure to some of the biggest names in the blockchain arena.

Woods, who also is a co-leader of the Fast Money Alert advisory service with Skousen that recommends stocks, funds and options, is a fellow fan of Amplify Transformational Data Fund and its call options. In November 2023, the Fast Money Alert advisory service subscribers watched a recommendation of BLOK call options jump more than 120% in just a few weeks. Rather than leave such a large potential gain at risk, the seasoned leaders of that advisory service recommended that their subscribers sell half to take some triple-digit percentage profits, while letting the rest ride in pursuit of additional gains.

“We simply do not want to miss out on preserving our initial capital,” the Fast Money Alert leaders wrote.

Three Cryptocurrency Investments to Buy: WONDF

WonderFi Technologies Inc. (OTC: WONDF), a Canadian-based crypto-trading platform, is the third recommendation for pursuing profits in cryptocurrency. With 1.7 million registered Canadians and assets under custody exceeding $1.5 billion, WonderFi now operates the largest crypto trading platform in Canada. WonderFi also is a recommendation in the Micro-Cap Stock Trader advisory service.

Chart courtesy of www.stockcharts.com.

Argo Digital Gold Ltd. (Argo), a new online gold dealer offering secure digital gold and precious metals trading and storage, recently announced a strategic investment partnership with Paxos and WonderFi. This collaboration builds upon the strong foundation established by Argo’s founding investors, the Sprott family and Peter Grosskopf, further solidifying its position at the forefront of the digital gold revolution.

WonderFi owns and operates Bitbuy and Coinsquare, two key crypto platforms with strongholds in the Canadian market; WonderFi operates Internationally through its expansion in Australia, as well as through Smartpay, its global crypto payments platform.

“We have established brands, a strong balance sheet, and international expansion efforts underway,” WonderFi CEO Dean Skurka said recently. “With an exciting product roadmap established, we are poised to continue our growth efforts and focus on driving continued awareness and attracting additional investors.”

WonderFi Strategic investor Kevin O’Leary meets with Paul Dykewicz.

The three cryptocurrency investments to buy have shown some recent share price weakness, even if it has been less than the drop in Bitcoin. For investors who like to purchase equities when the price pulls back, the opportunity has arrived. with three cryptocurrency investments to buy.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Special Sale for Graduation Season! Paul is the author of an inspirational book, Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The uplifting book is great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many othersCall 202-677-4457 for reduced pricing on multiple-book purchases.

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