Be Prepared To Buy The Right Bitcoin ETP As The Digital Currency Could Be Approaching A Key Inflection Point

Bitcoin: Quick Technical Insight

Bitcoin is facing a make-or-break moment following the latest selloff between November 2021 and February 2022. On the technical side, the cryptocurrency remains is a positive momentum according to the MACD (12, 26, 9) readings and it has just touched the overbought territory in line with the RSI (14). Although those two measures show the possibility of the new long-term uptrend forming, it is worth to note the price of Bitcoin is trading well above the 50 days MA which recently changed its direction upwards. Moreover, the digital currency has started testing the 200 days MA resistance level. If this level is broken we may see the Bitcoin price to go well above the level of $50k.

Bitcoin Price – Source: StockCharts

Things look very interesting also on the relative basis. The Bitcoin vs. SPX ratio has just started trading above the 200 days MA. Is this the right moment to short the S&P 500 Index and go long Bitcoin? There is no simple answer to this question, but the relative value technical investors are probably wondering what is going to happen next.

Bitcoin vs. SPX Ratio – Source: StockCharts

ETPs To Gain Exposure To Bitcoin

European investors should consider the largest ETP which is the BTCetc – ETC Group Physical Bitcoin ETP (BTCE), 100% physically backed.

Advantages of trading BTCE

  • Simple trading, with no digital wallet required
  • Institutional-grade asset custody
  • 100% backed and physical redemption
  • Regulated and listed on major exchanges
  • Carbon neutral pure Bitcoin exposure

This ETP is approx. $800m in size and charges the TER of 200 bps. It was launched on June 8th, 2020.

There are more Bitcoin trading ETPs which you can explore on the online Algo-Chain database that offers very insightful analysis of the universe of over 13k ETFs and ETPs listed globally. See below just a sample outcome of the Bitcoin ETPs different listings.

Algo-Chain ETF Genie (database)

You are also welcome to visit the Algo-Chain Case Study Gallery with the sample growth multi-asset model portfolios with exposure to Bitcoin as a satellite position on the level of 3 or 5 percent.

Algo-Chain Case Study Gallery

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