There have also been measures to bring cryptocurrency into the listed investment space, with the launch of cryptocurrency exchange-traded funds (ETFs) and futures on various exchanges around the world.
Last year, the Chicago Mercantile Exchange (CME) Group announced it would be launching a futures product tracking the performance of the bitcoin crypto-currency. After a short delay, it went live and, in January, the president of the Chicago Board Options Exchange (CBOE) said he expects the exchange to launch more cryptocurrency futures products within the near future.
Later on in January 2018, Adena Friedman, chief executive of US exchange Nasdaq told US broadcaster CNBC it was also looking into bitcoin futures.
Investors interested in a passive tracker that can take advantage of Bitcoin could consider two different ETFs: the Ark Web x.0 ETF and Ark Innovation ETF.
According to its latest factsheet, the Ark Web x.0 ETF is a "thematic multi-cap exposure to fast moving internet technologies including cloud computing, big data, digital media, e-commerce, bitcoin, and the Internet of Things. Ark Web is the first ETF to include exposure to Bitcoin".
The fund seeks long-term growth of capital. It seeks to achieve this investment objective by investing under normal circumstances primarily (at least 80 per cent of its assets) in domestic and US exchange-traded foreign equity securities of companies that are relevant to the Fund’s investment theme of Web x.0.
The fund will be concentrated in issuers having their principal business activities in the Internet information provider and catalogue and mail order house industry
There is also a Bitcoin Investment Trust (NPV) available to investors, although information on this can be difficult for the average investor to get hold of.
For example, users of Hargreaves Lansdown's investment service cannot view any information on this trust, because the party responsible for publishing the key investor information documents has not made them available to Hargreaves Lansdown for this stock and so it cannot be purchased.
However, "even with the recent introduction of Bitcoin futures, the [volatility] is a risk that is very difficult to hedge", says Mr Futter.
Forward-look at uses and transactions
Fidor's Mr Kroner believes the use of cryptocurrencies will become increasingly widespread, as people become more confident and gain further knowledge about it.
He says this will lead to a "serious shift" towards consumer-friendly usage.
"For example, payments on e-commerce sites, such as Amazon, could integrate Bitcoin options sooner than we think, and other online retailers may be quick to follow this.
"Amazon has already registered the 'amazonbitcoin.com' domain name, but I think Bitcoin may be used for more daily micro transactions as well. The payment-use case is totally under-represented currently, with much of the focus on the speculation of Bitcoin."
