Today we will be exploring one of the most exciting investment opportunities available among blockchain companies today: the Bitcoin Exchange Traded Fund (ETF).
The first U.S. bitcoin futures exchange-traded funds, the ProShares ETF, debuted this week, allowing investors to buy and sell bitcoin derivatives outside of cryptocurrency exchanges for the first time in history.
Rather than buying or selling the underlying asset directly (such as Bitcoin), investors will be able to access exposure to bitcoin futures contracts — agreements to buy or sell the asset at a future date for an agreed-upon price.
The ProShares ETF saw one of the biggest first days on record, raking in $550 million from crypto-hungry investors.
Wondering how you can take advantage of this ground-breaking development? Let’s talk about the basics first, using Bitcoin to simplify the concept further.
What are Bitcoin ETFs?
An ETF that mimics BTC prices, known as a bitcoin ETF, allows investors to invest in the fund without having to trade bitcoins.
The implications are enormous, as it allows everyday investors to trade Bitcoin without actually holding any Bitcoin themselves! Not only does this reduce the barrier for entry into the market, but also removes the risks associated with storing Bitcoin safely.
Benefits of Investing in a Bitcoin ETF
By eliminating the need to purchase bitcoins, traditional investors have a much better chance of including Bitcoin in their portfolio.
There are many benefits to this beyond just being able to easily invest with your brokerage account, such as:
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Diversification
ETFs provide an opportunity for crypto-investors to diversify investments away from BTC alone. If the price of BTC drops, you won’t see an impact on your entire portfolio.
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Exposure
Investors get exposure to the digital currency without needing to worry about purchasing and securing it.
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Safety
No need for cold storage or private keys, which means less time worrying about security or filtering blockchain technology companies.
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User-Friendly Trading Platforms
Sure, you can purchase BTC directly using traditional exchanges, but the process is often convoluted and difficult for casual investors to navigate. Investors can now easily access Bitcoin investing through their brokerage accounts, just as they would with any other tradable asset class.
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Liquidity
ETFs allow investors to quickly and easily sell bitcoins, the same way they would any other stock. For example, an ETF might make it easier for you to run a market sell elsewhere.
Are Bitcoin ETFs a safe investment?
Far safer than buying coins, yes. The ETFs available on the market today are extremely safe, as they don’t actually purchase Bitcoin itself. Rather, it is a fund that owns Bitcoin futures contracts that you can buy into.
In addition to this, the actual exchanges where cryptocurrencies are traded have been growing exponentially in security and liquidity due to their popularity and rate of adoption.
However, just like any investment vehicle, you need to learn as much as you can before pouring your hard-earned money into any digital asset management solution.
That’s where Key Coin Assets can help.
Invest Wisely in Crypto with Key Coin Assets
While investing in crypto ETFs can be a smart decision, you still need to tread the market carefully. The more you know about how blockchain companies work, the better your chances for huge profits.
Key Coin Assets has 37 successful ICO investments around the world, and we have a history of picking winning investments, whether that’s ICOs, ETFs, new coins and tokens, and more. We’d be happy to help make safe and profitable steps in this exciting space. Call us NOW at 843-886-9547 to start investing in yourself!