Pro-XRP lawyer John Deaton warns against using home equity to buy Bitcoin originally appeared on TheStreet.

Pro-XRP lawyer John Deaton has sounded the alarm over the latest investment trends emerging in the Bitcoin community.

There are multiple ways to trade Bitcoin in the U.S. One can directly trade in BTC over centralized or decentralized crypto exchanges, invest in stocks of Bitcoin-focused companies such as Strategy (Nasdaq: MSTR), or invest in exchange-traded funds (ETFs) tied to Bitcoin.

There are even more innovative ways of Bitcoin investing that are gaining the attention of the trading community. One such way is using home equity to invest in Bitcoin.

Recently, a technology company Horizon launched a program that lets a homeowner access a portion of their home's equity — without monthly payments — and invest some of that equity in Bitcoin.

Deaton cautioned against such trends in Bitcoin investing even as he reminded everyone that he is himself a Bitcoin bull. He reminded his followers on X that he disclosed holding 80% of his net worth in Bitcoin to the Federal Election Committee (August 2024 Senatorial financial disclosures). He added that he even took on Democrat Elizabeth Warren in Massachusetts during the 2024 election, who he says sought a ban against self-custody of Bitcoin in the country.

Nonetheless, Deaton said Bitcoin investing trends such as mortgaging homes or acquiring preferred stocks offered by Strategy for the purpose could lead to "bad outcomes" for such investors due to risks involved.

Bitcoin has had a terrific year so far and has grown nearly 50% over the last 12 months. As per Kraken, it was trading at $105,370.29 at press time.

Pro-XRP lawyer John Deaton warns against using home equity to buy Bitcoin first appeared on TheStreet on Jun 4, 2025

This story was originally reported by TheStreet on Jun 4, 2025, where it first appeared.