Major companies and banks are now buying into bitcoin. If you want exposure, here's how

Published Fri, Feb 12 20212:39 PM EST

Jesse Pound @/in/jesse-pound @jesserpound

As bitcoin moves further into the mainstream, the ways for individual investors to dip their toes into the cryptocurrency world are expanding. Bitcoin traded at nearly $49,000 per unit this week, putting the nascent asset class up nearly 70% since the start of the year. The price of bitcoin jumped sharply in 2020 as well, with major hedge fund managers and other high profile signaling their interest in the cryptocurrency. Companies are getting more comfortable with bitcoin as well. Elon Musk's Tesla bought $1.5 billion of bitcoin and will start accepting it as payment for its cars. Employees at major Wall Street banks are clamoring to be allowed to trade crypto. Adoption by mainstream companies and financial institutions has long been a part of the optimistic case for many bitcoin bulls, including Galaxy Digital CEO Mike Novogratz. It now looks like that tide could be turning . To be sure, bitcoin and other cryptocurrencies are extremely volatile assets and may not be suitable for all investors. But there are several ways to get involved for those who are willing to take the risks. High risk: Buy directly The most direct way for investors to get exposure to bitcoin is to buy some themselves. There are several websites and online exchanges focused on cryptocurrencies, including Coinbase. In New York, users who verify their identities on Coinbase can buy cryptocurrency with a debit card. Some mainstream financial institutions will let investors buy bitcoin as well, including PayPal and Square 's Cash App. Square also bought $50 million of bitcoin in October . High Risk: Futures contracts Another way to trade cryptocurrencies is futures contracts. The Chicago Mercantile Exchange recently introduced futures for ether to go along with its bitcoin futures. Medium Risk: Funds While there are no exchange traded funds based on bitcoin trading in the U.S., there are funds related to bitcoin. Ark Invest's Next Generation ETF holds several stocks related to cryptocurrencies and a stake in the Grayscale Bitcoin Trust . Grayscale has several bitcoin-related products that trade over the counter. The Grayscale Bitcoin Trust has more than tripled in value over the past six months. The fund has more than $30 billion in assets and each share represents .00095 bitcoin, according to the firm's website. Less Risk: Stocks Additionally, there are the stocks of major companies that are buying bitcoin or hosting transactions in bitcoin, meaning the value of their stocks could rise and fall with the cryptocurrency. Before Tesla swapped some of the cash on its balance sheet to bitcoin, the CEO of MicroStrategy encouraged Elon Musk to do so . Shares of the Virginia-based enterprise software company have traded in a similar pattern to bitcoin since last August, when MicroStrategy revealed that it had bought more than 21,000 bitcoins. The stock is up more than 600% over the past six months, including a big jump the day Tesla made revealed its bitcoin investment.

A woman uses a Bitcoin ATM machine placed within a safety cage on January 29, 2021 in Barcelona, Spain.

Cesc Maymo | Getty Images

As bitcoin moves further into the mainstream, the ways for individual investors to dip their toes into the cryptocurrency world are expanding.

Bitcoin traded at nearly $49,000 per unit this week, putting the nascent asset class up nearly 70% since the start of the year. The price of bitcoin jumped sharply in 2020 as well, with major hedge fund managers and other high profile signaling their interest in the cryptocurrency.