Bitcoin Surpasses $100,000 Again: Financial Expert Ric Edelman Shares Insights on the Crypto ETF Surge

Bitcoin’s milestone week comes as new crypto exchange-traded funds are hitting the market. Investor and best-selling personal finance author Ric Edelman believes the rollout provides investors with enhanced access to potential gains. He finds buffer ETFs and yield ETFs particularly exciting.

“You can now invest in bitcoin ETFs that protect you against the downside volatility while preserving your ability to enjoy the upside profits,” Edelman told CNBC’s “ETF Edge” this week. “You can generate massive amounts of yield, much more than you can in the stock market.”

Edelman is the founder of the Digital Assets Council of Financial Professionals, which educates financial advisors on cryptocurrencies. He is also a member of Barron’s Financial Advisor Hall of Fame.

“Crypto is meant to be a long-term hold, just like the stock market,” said Edelman. “It’s meant to diversify the portfolio.” His insights were shared as a bitcoin rally began, with the cryptocurrency crossing $100,000 on Thursday for the first time since February. As of Friday’s close on Wall Street, bitcoin gained 6% this week and is now up almost 10% so far this month.

However, Edelman sees potential issues regarding leverage and inverse bitcoin ETFs. He cautioned that not all crypto ETFs are suitable for retail investors, as many may not fully understand how they operate. “These leveraged ETFs often assume you’re going to hold the fund for a single day, a daily reset,” he noted. “That’s literally the same thing as buying a lottery ticket. This isn’t investing.”

During the same interview, “ETF Edge” host Bob Pisani referenced the 2x Bitcoin Strategy ETF (BITX) as an example of a leveraged bitcoin product that includes daily fees and resets. The fund has been performing well this week, jumping more than 12%. So far this month, the ETF is up 19%. However, the BITX has been underperforming bitcoin this year, up about 1.5%, while bitcoin has risen roughly 10%.

Volatility Shares is the ETF provider behind BITX. The company advises that “The Fund is not suitable for all investors… An investor in the Fund could potentially lose the full value of their investment within a single day.”