Investing $100k in Bitcoin and S&P 500 ETF (SPY), Which is More Profitable?

Have you ever wondered what it will look like to invest $100k in Bitcoin and S&P 500 ETF? We have created a price history of the two within a ten-year period, and it is interesting!

What is Bitcoin and S&P 500 ETF (SPY)? 

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• Before diving deep into which is more profitable between the two, let’s have an overview of the two assets. Apparently, Bitcoin is the apex cryptocurrency, created in 2009 to disrupt traditional finance. The creation of Bitcoin led to the birth of many other cryptocurrencies, such as Ethereum, Cardano, XRP, Litecoin, and many others. 
• On the other hand, the S&P 500 ETF (SPY) is an exchange-traded fund (ETF) that tracks the S&P 500 Index. The creation of this ETF happened in 1993. This ETF often gets commendations as the first ETF to be listed and remains one of the most actively traded. Apparently, this is even with the introduction of competing S&P 500 ETFs. 

First Year of Investing $100k in Bitcoin and S&P 500 ETF (SPY)

• In the first year of investing $100k in Bitcoin and S&P 500 ETF (SPY), the former comes out the top in the profits made from the investment. However, this is only by a slight margin. 
• Bitcoin comes out the top with $135,447, and the SPY ETF comes second with $ 115,735. 

Second Year of Investing $100k in Bitcoin and S&P 500 ETF (SPY)

• In the second year of investment, Bitcoin takes massive losses. In fact, there’s no comparison between the two assets. 
• Bitcoin came out this year with 57,576. That’s the two total growth for the year. However, the SPY ETF ended the year at $102,725. It was still in profit but by a small margin. 

Third Year of Investing $100k in Bitcoin & SnP 500 ETF (SPY)

• Bitcoin made a massive comeback in the third year. At the end of the year, Bitcoin ended up at $232, 491. However, the SPY ETF ended the year at $134,770. That’s a stark difference between Bitcoin and S&P 500 ETF. 

Fourth Year of Investing $100k in Bitcoin and S&P 500 ETF (SPY)

• In the fourth year, Bitcoin isn’t taking any chances with the growth. It ended the year at $282,938. On the other hand, the ETF ended up at $164,188. That’s another wide difference in the growth. 

Fifth Year of Investing $100k in Bitcoin and SPY ETF 

• The fifth-year shows how different the two assets look. Bitcoin was already close to reaching half a million dollars, while the ETF was a bit over $168k. So, Bitcoin ended the year at $385,884. On the other hand, the ETF ended the year at $168,669. 

Sixth Year of Investing $100k in Bitcoin and SPY ETF 

• The sixth year was much better than the spy ETF, but Bitcoin was still better. Furthermore, this was another scenario of differences between Bitcoin and S&P 500 ETF. The growth at the end of the for Bitcoin was $577,389, while the ETF was $201,553. 

Seventh Year of Investing $100k in Bitcoin and SPY ETF 

• In the seventh year, it was clear that the SPY ETF would never meet Bitcoin. In fact, the gap was so clear that Bitcoin was now more than 20x better. Bitcoin ended the year at $4,745, 191. On the other hand, the SPY ETF was around $234,128. Still no comparison between Bitcoin and S&P 500 ETF. 

Eight Year of Investing $100k in Bitcoin and S&P 500 ETF (SPY) 

• In the 8th year, Bitcoin was already close to 3x of the last year’s price. Bitcoin growth at that time saw it at $11,804,461. However, the ETF was struggling at $263, 063. 

Ninth Year of Investing $100k in Bitcoin and SPY ETF 

• In the 9th year, Bitcoin suffered some massive breakdown from the growth trend. Nevertheless, it was still millions of dollars away from the SPY ETF. In the 9th year, Bitcoin ended the year with $5,336,737. Apparently, it was still no match for the SPY ETF at $265,171.

Tenth Year of Investing $100k in Bitcoin and S&P 500 ETF (SPY)

• In the last year of this assumption, the investors who put their money into Bitcoin would have become multi-millionaires. Apparently, Bitcoin at this point was at $21,745, 436. On the other hand, the SPY ETF was around $330,369.

Conclusion 

Both investments made massive profits for the investors within 10 years. Apparently, between Bitcoin and S&P 500 ETF, the former made some crazy profits in the same period. Assuming you invested $100,000 in the first year and left it alone till the tenth year, you will have more than $21 million as profit. However, if you do the same thing for the SPY ETF, you will only have around $200k as profit after removing the $100k capital.