Bitcoin Is Difficult to Value

Bitcoin is a speculative investment. There is no fundamental reason why it is priced where it is today. It is at the whims of supply and demand, making future prices hard to predict.

My colleague, Madeline Hume, took a look at four valuation methodologies for pricing bitcoin. Her conclusion? Each is flawed in its own way, and there doesn’t seem to be much appetite for improving them. Investors must understand that bitcoin prices, and therefore these ETFs, are untethered from a fundamental value. Don’t buy these ETFs if that makes you uneasy.