Invest In Bitcoin Using the Easy Button with SPBC

Many investors are intrigued by the potential of Bitcoin, but at the same time may be a bit intimidated. After all, over the past decade Bitcoin has been at least three times more volatile than the S&P 500 Index and has gone through multiple 70%+ drawdowns.

 Knowing when to buy (or sell) hasn’t been easy. Even just holding comes with its own challenges, as Bitcoin has come with periods of explosive growth as well as drawdowns. For example, suppose an investor decides to allocate 5% of their portfolio to Bitcoin only to find that a year later that position has grown to 30%! What should they do? Just keep holding through the next inevitable bear market? Take profits? 

Enter the Simplify US Equity PLUS GBTC ETF (SPBC). 

How the Fund Works 

SPBC invests 100% of its assets in large cap US equities + a 10% allocation to Bitcoin via the Grayscale Bitcoin Trust (GBTC). GBTC can go as high as a 15% allocation or as low as 5% before it must be rebalanced back to the 10% target. It’s the only ETF that regularly rebalances a Bitcoin exposure. Therefore it takes the guesswork out of investing in Bitcoin. The Bitcoin price has run up? SPBC will take profits. Bitcoin is in a large drawdown? SPBC will buy more. At the same time, it uses a small amount of leverage (via futures contracts) to keep the large cap US equity exposure at 100%. Investors can therefore maintain their full desired equity exposure by allocating to SPBC. The Bitcoin returns get “stacked” on top. For financial advisors, blending the Bitcoin and equity exposure in a single line item can help reduce the volatility of a dedicated Bitcoin investment and thus keep their clients invested with greater confidence.

How to use it 

With a 100% exposure to large cap US equities, investors can simply substitute SPBC for any of their existing large cap US equity holdings. For investors that want an easy way to gain some Bitcoin exposure while not having to stress about the best times to buy or sell, and without having to worry about the position “getting away” from them, SPBC could be the product they’re looking for.

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