Crypto exchange-traded funds a fizzer on debut

Other investors may also have been waiting to see if local crypto ETFs encountered any technical issues in their debut. There were none.

Crypto ETFs had low trading volumes, partly attributed to the fact that some brokerage platforms do not support their trades, as they are required to hold much higher levels of collateral for each trade, due to the extreme crypto volatility.

“As with all highly speculative investments, we encourage investors not to get carried away by the hype.”

Chris Brycki, founder of Stockspot

Crypto tracking ETFs listed on Cboe — ETF Securities’ bitcoin tracking ETF (code EBTC) and its Ethereum tracking ETF (EETH), and Cosmos Asset Management’s (CBTC) fund that tracks bitcoin — will be followed by more crypto-tracking ETF listings.

BetaShares and VanEck plan to launch crypto ETFs on the Australian Securities Exchange, but they are still weeks away from debuting.

The Australian Securities and Investments Commission gave the green light to crypto ETFs last year, but providers must meet a number of strict conditions aimed at protecting investors.

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“As with all highly speculative investments, we encourage investors not to get carried away with the hype,” says Chris Brycki, founder of Stockspot, an online investment adviser and fund manager.

He says the price of bitcoin could easily double – or drop 80% or more – within 12 months.

“We don’t think you need these products in a diversified portfolio,” Brycki says. “We think gold is a much better defensive asset [that can also be accessed through ETFs].”

“If people want to invest in them, only allocate a small percentage of your overall portfolio and ‘average dollar cost,'” Brycki says, referring to the strategy of drip cash in the investment, rather than injecting money all at once. big hit.

ETF shares can be bought and sold like shares in listed companies. They follow the prices of all types of markets.

Crypto ETFs are convenient for investors who otherwise face the hassles of having to owe crypto directly, such as having to go through a crypto exchange and having passwords and digital wallets.

  • The advice given in this article is of a general nature and is not intended to influence readers’ decisions regarding investments or financial products. They should always seek professional advice that takes their personal circumstances into account before making financial decisions.

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