Bitcoin (CRYPTO: BTC) received a major boost earlier this month when US authorities approved the first-ever exchange-traded funds (ETFs) that directly invest in the cryptocurrency.
These Bitcoin ETFs are different to previous funds that invested in the fortunes of the crypto because they directly represent the present "spot" value, rather than using indirect mechanisms like futures.
So the theory is that buying $1 of a spot ETF instantly means you hold $1 of Bitcoin.
Unsurprisingly, the value of Bitcoin shot up immediately due to this development.
Moomoo market strategist Jessica Amir reckons the positive impact of these new Bitcoin ETFs on the cryptocurrency would be long-lasting.
"The fact that investors can now buy into Bitcoin via an ETF, which is just like buying a share, will support its price higher, as it will be added to investment managers' portfolios."
The investment thesis will be further strengthened with the possibility that Bitcoin could come more into use in everyday life.
"Public companies like Tesla Inc (NASDAQ: TSLA) and Microsoft Corp (NASDAQ: MSFT) already accept Bitcoin as payment.
"Although it may be a long while before Bitcoin is fully assimilated into everyday life, it will likely put the 2022 crash behind it and hit new highs."
But did you know there is one particular stock in the S&P/ASX 200 Index (ASX: XJO) that could also benefit from the rise in Bitcoin?
Image Source: Moomoo
You have used this ASX 200's products, for sure
While the name Block Inc CDI (ASX: SQ2) may not be familiar to everyday Australians, they have certainly used their technology at one time or another, if not almost everyday.
"Block is the company behind the Square terminal that you may tap on to pay for a doctor's visit, a coffee or a meal," said Amir.
"It's also the company that bought the buy now pay later app Afterpay and it has a mobile payment service, Cash App."
Block Inc and its famous co-founder Jack Dorsey have been long-time fans of cryptocurrencies.
In fact, back in December 2021, days after Dorsey resigned as chief executive of Twitter, the company changed its name from Square to Block.
The new name was partially a hat tip to the "blockchain", the software structure on which cryptocurrency is built on.
Amir pointed out crypto has been integrated into the ASX 200 company's consumer apps to promote and broaden its usage.
"Block's revenue will also grow after it launched a Bitcoin mobile app that allows users to access, store and use their Bitcoin through an app and a hardware key.
"With a diversified revenue stream, Block is one to watch amidst the Bitcoin hype."
Professional investors are bullish on Block Inc. According to CMC Invest, all three analysts that cover the fintech are currently rating it as a strong buy.
