5 Ways to Invest in Crypto Without Purchasing Cryptocurrency

Despite the surge in the number of crypto investors over more than a decade, many people are still not comfortable with the idea of directly buying and holding cryptoassets. 

Whether it’s due to the price volatility, security concerns, or the technical know-how required, there are many valid reasons investors might hesitate. Luckily, there are ways to invest in the burgeoning crypto market without ever owning a single coin. 

Here are five alternative strategies to consider.

Invest in Blockchain and Crypto Stocks

Blockchain is the technology underpinning cryptocurrencies like Bitcoin (BTC). Investing in companies that develop and utilize blockchain technology or serve the cryptoasset industry allows you to tap into this ecosystem without direct exposure to cryptoassets. 

One prominent example is the major crypto exchange Coinbase, as its shares are listed on NASDAQ. Bitcoin miners Riot Platforms and Marathon Digital Holdings might be worth exploring as well. 

Some of the biggest Bitcoin mining hardware manufacturers, such as Bitmain and Canaan, can also be found on stock exchanges. There are also asset management-focused crypto companies, such as Coinshares and Samara Asset Group, whose shares are listed on exchanges. 

Investing in these stocks provides a way to benefit from the growth of the blockchain and cryptoasset industries while mitigating some of the risks associated with direct investments in these assets. Keep an eye on this space as multiple major crypto companies are planning to go public.

Purchase Shares in Crypto ETFs

Exchange-traded funds (ETFs) have long been a popular way for investors to gain exposure to various markets without having to purchase underlying assets. This convenience is also offered by Bitcoin ETFs, which stormed the US market in 2024. 

For example, among them is the biggest BTC fund, iShares Bitcoin Trust (IBIT), operated by the world’s largest asset manager, BlackRock.

ETFs can also invest in a basket of crypto assets or blockchain companies, allowing you to gain diversified exposure to this sector. By investing in cryptoasset industry-related ETFs, you can spread your investment across multiple assets, reducing the risk associated with investing in a single asset or company.

Look for Crypto-involved Companies

Another indirect way to invest in the cryptoasset market is by purchasing shares in companies that are not crypto companies per se but are still involved in this space. These companies might not be developing blockchain technology themselves but are leveraging its capabilities for their business models. 

For instance, payment giants such as Block and PayPal have integrated cryptocurrency trading into their platforms, allowing users to buy, sell, and hold these currencies. By investing in these companies, you are also betting on the growing adoption of cryptocurrencies and their ability to drive business growth.

Additionally, investing in firms like Nvidia and AMD, which manufacture components used in Bitcoin mining, can be a lucrative option. 

Also, a new trend is starting to emerge among traditional listed companies as they implement the so-called Bitcoin strategy. By doing so, they’re making BTC their reserve asset and investing millions, and even billions USD, in this cryptocurrency, as in the case of US-based MicroStrategy, which saw its stock rise sharply.

Engage with Crypto-related Funds

Hedge funds and mutual funds that focus on crypto assets and blockchain technology offer another avenue for indirect investment. These funds are managed by financial professionals who actively research and invest in various aspects of the crypto market, aiming to generate high returns for their investors.

Among the biggest crypto hedge funds, you can find Pantera Capital, BlockTower Capital, BH Digital, and more. However, hedge funds are usually available for professional investors only. Meanwhile, if you’re looking for a public entity, mutual funds such as IDX Risk-Managed Bitcoin Strategy Fund (BTIDX) and Bitcoin Strategy ProFund (BTCFX) might be worth your attention.

These funds provide a managed approach to investing in the cryptoasset market, potentially reducing the risks associated with direct investment and allowing for professional oversight. However, you will need to pay a fee for these services.

Support Private Bitcoin and Crypto Companies

Another way to invest in the Bitcoin and crypto space is by investing in already established but still private companies or startups in this industry by becoming their shareholder. It can be done via direct negotiations with the teams or by joining syndicated investment rounds, benefiting from the terms agreed by bigger investors.

For example, one of the most important and quickly growing sectors in the cryptoasset industry is related to custody services. Therefore, if you get a chance to invest in a Bitcoin custodian with strong potential, this might become another way to capitalize on the growth of the cryptoasset industry.

Final Take

Investing in the cryptoasset market doesn’t have to mean buying and holding these assets directly. There are several ways to gain exposure to this ecosystem while mitigating some of the risks associated with direct investment, such as self-custody

Whether it’s through blockchain stocks, crypto ETFs, supporting crypto-focused companies, engaging with crypto-related funds, or investing in private companies and startups, these strategies offer viable alternatives for investors looking to capitalize on the growth of the cryptoasset market. 

As always, it’s important to do thorough research and consider your risk tolerance before diving into any investment.