ETFs
You might regret ignoring this little-known ETF that combines the power of the S&P 500 and Bitcoin
History has shown that one of the easiest ways for investors to consistently give their portfolio the best in the market is to invest in S&P500 (SNPINDEX: ^GSPC). Made up of the 500 largest U.S. companies, the S&P 500 has generated an average return of 10% per year over the long term.
^SPX Chart
An average return of 10% – which includes both up and down years – is nothing to sneeze at, but for a growth investor with a long-term time horizon (and a greater appetite for risk), there is better opportunities in the market. This often means investing in riskier stocks, particularly technology companies at the forefront of innovation, because they have notable long-term potential. However, there is another asset that proves to be a valuable addition to wallets: Bitcoin (CRYPTO:BTC).
Image source: Getty Images.
The Bitcoin effect
Over the past five years, Bitcoin has grown by over 675%. Zooming in even further, the cryptocurrency has grown much more. The reason for Bitcoin’s massive appreciation is nuanced, but what’s important to note is that it still holds. lots of potential to continue to grow.
While blockchains and cryptocurrencies have significant potential to transform financial markets, the majority of the crypto asset class is rife with speculation. For several reasons, Bitcoin is the safest crypto investment one can make. The crypto market is worth $2.57 trillion and Bitcoin accounts for over 50% of that value. This means that as Bitcoin evolves, so does the rest of crypto.
This makes it a great proxy for investors who want exposure to the burgeoning potential of cryptocurrencies without having to pick individual winners, much like investing in the S&P 500.
What if investors could invest in Bitcoin and the S&P 500 through one convenient exchange-traded fund (ETF)? Enter the Cyber Hornet Bitcoin Strategy ETF (NASDAQ:ZZZ) from OneFund.
What makes this ETF unique
This ETF is one of a kind. It allocates 75% to the S&P 500 and the remaining 25% to Bitcoin futures. Having debuted in December 2023, over the past six months it has returned a generous 20%, as Bitcoin and the S&P 500 both sit near all-time highs.
The beauty of the Cyber Hornet ETF is in its simplicity. By adding this ETF to your portfolio, you will gain exposure to the most valuable cryptocurrency on the market and, with that, the gains that only Bitcoin is able to provide. Additionally, investors are putting their money to work through the S&P 500 and major companies including Microsoft, Nvidia, Appleand many other famous names.
The story continues
The most important benefit this ETF offers is the mix of old and new. The 75% devoted to the S&P 500 serves as a buffer to the volatility and significant declines that have historically hit Bitcoin every four years or so. While a 25% allocation to Bitcoin gives investors a chance to benefit from growth spurts.
Take 2022 for example. During this period, Bitcoin and its futures contracts fell more than 65%, while the S&P 500 fell 19%. Even if the Cyber Hornet ETF wasn’t trading at the time, it would have fallen about 30% given its allocation. Make no mistake, a 30% drop is not ideal, but this example shows how investors are protected from the worst of Bitcoin’s corrections thanks to the ETF’s unique allocation strategy.
However, on the contrary, in 2023, the S&P 500 increased by 24%. Again, although it is not traded, the Cyber Hornet ETF has reportedly shown its true power by yielding a commendable 59% return, mainly due to the resurgence of Bitcoin and the rebound in Bitcoin futures which increased by approximately 165%.
This Bitcoin/S&P 500 ETF might be right for you if…
Maybe you’ve heard about Bitcoin’s ability to rise dramatically in a short period of time or heard about the recent approval of spot Bitcoin ETFs, but you’re still shy about diving in head first . Maybe you don’t know how to buy Bitcoin on a crypto exchange or how to manage a digital wallet.
If that’s the case, but you’ve done your research and believe in the long-term potential of Bitcoin, the Cyber Hornet ETF might be right for you.
It should now be made clear that this ETF is not intended for an investor close to retirement, who does not have much time to recoup their losses. Although Bitcoin has proven its ability to generate substantial returns, a byproduct of its limited supply and increased adoption, it is not without corrections.
For those with time on their hands, the Cyber Hornet ETF offers a balance that few other ETFs can: a blend of the best of crypto and the best of the traditional stock market. Your money could benefit from Bitcoin’s long-term trajectory while being protected from the increased volatility that so often occurs when investing in cryptocurrencies.
Should you invest $1,000 in the Cyber Hornet S&P 500 and Bitcoin 75/25 Strategy ETF right now?
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RJ Fulton has positions in Bitcoin. The Motley Fool holds positions and recommends Apple, Bitcoin, Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Mad Motley has a disclosure policy.
You might regret ignoring this little-known ETF that combines the power of the S&P 500 and Bitcoin was originally published by The Motley Fool