Edward Jones’ senior investment strategist, Mona Mahajan, shed light on the potential of Bitcoin BTC/USD exchange-traded-funds (ETFs) for investors.
What Happened: During a discussion with Business Insider, Mahajan proposed that Bitcoin ETFs could act as a lucrative avenue for “lottery ticket money” – a speculative slice of an investor’s overall portfolio.
After a strenuous ten-year journey striving for official sanction in the U.S., Spot Bitcoin ETFs have finally secured approval. With the regulatory nod secured on Wednesday afternoon, the much-awaited investment vehicles are set to join the hustle and bustle of trading platforms by Thursday morning.
Mahajan, in a discussion with CNBC on Wednesday, said, “I think the bitcoin ETF is a great part of your speculative basket.” Emphasizing its fit for risk-tolerance portfolios, she added, “Everyone has that 5% that’s lottery ticket money, but that’s a great place to put it.”
Why It Matters: Mahajan also recommended that investors diversify their portfolios. She advised to not only invest in the ‘Mag Seven’ and artificial intelligence but also in the equal-weighted S&P 493, parts of value and cyclical, and even mid- and small-cap sectors.
According to her, these sectors are starting to make progress, but there’s still more room to grow.
Meanwhile, Standard Chartered projected Bitcoin’s value to rise to $100,000 this year and $200,000 by the end of 2025. Fundstrat’s Tom Lee has predicted a rise to $500,000 within five years.
Price Action: At the time of writing, BTC was trading at $46,050.65 up 0.38% in the last 24 hours, according to Benzinga Pro.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
