Topic: The first ETF launched in the United States! (Read 83 times)
Does it have the same benefits as a regular ETF though, I am pretty sure that they aren't going to have that, and also with ETFs I think that you really don't own anything that you invest in, you just chip in money so they can buy more and let you in for a small percentage of the profit, be careful with this kind of thing people.
Probably not many on this forum would use an ETF to invest in crypto since it is easy and not expensive to build your own portfolio of crypto and also because there is a third party risk involved, even some counterpart risks if using derivatives. That risk is not present when you buy and is even less if you hold your keys and keep your own safety.
However, it is good that another ETF comes to live, as it will allow institutional investors and large capitals to become part of the crypto ecosystem, thus adding network value to the whole community.
However, it is good that another ETF comes to live, as it will allow institutional investors and large capitals to become part of the crypto ecosystem, thus adding network value to the whole community.
I really think that if you want to invest in cryptos, you probably don't want to hold these ETFs per se.
Sure, these things are going to generate quite a lot of hype in the short run given the fact that it is a completely novel concept. But if you look at how the index is structured (an ETF holding a bunch of companies who are then in turn holding at least $100m in cryptos), it is laden with regulatory and counterparty risk.
If you were going to invest in specific companies in the first place, then sure, this is an investment structure that could probably work. But in terms of getting exposure to actual cryptos, this is a terribly inefficient method of achieving that ends.
Sure, these things are going to generate quite a lot of hype in the short run given the fact that it is a completely novel concept. But if you look at how the index is structured (an ETF holding a bunch of companies who are then in turn holding at least $100m in cryptos), it is laden with regulatory and counterparty risk.
If you were going to invest in specific companies in the first place, then sure, this is an investment structure that could probably work. But in terms of getting exposure to actual cryptos, this is a terribly inefficient method of achieving that ends.
Great news ... earlier, when I was actively trading, I was subscribed to the Telegram alert related to the adoption of ETFs, as the price of bitcoins was quite volatile in the lead up to such hearings, (although I am still skeptical, as acceptance will become a precedent for challenging previously denied ETF requests). The bad news is that almost the main criterion for including a crypto company in the Bitwise index is the presence of an IPO ... below are the secondary criteria for inclusion in the index.
Quote
Criteria: In most cases, companies in the new index derive at least 75% of their revenue from directly servicing cryptocurrency markets or have at least 75% of their net assets accounted for by direct holdings of liquid cryptoassets. Such companies may, for example, offer crypto brokerage services, financial and banking services, mining solutions, technology solutions.
The company announced in a press release on May 12 that the first exchange-traded fund (ETF) with the word "crypto" in its name, the $ 1.5 billion Bitwise Digital Asset Management Fund, has been launched in the United States.
The ETF, called the Crypto Industry Innovators 30 Index, will be on the public listing of cryptocurrency companies such as Coinbase, the largest cryptocurrency exchange in the United States.
Only "pure-play" names with "material activity" in the industry, and at least $ 100 million in assets will be included in this index.
While Bitwise launched the first "crypto" ETF, there are a number of ETFs targeting blockchain and mining companies.
However, the US Securities and Exchange Commission (SEC) has not yet approved an ETF that directly tracks the price of bitcoin, as a growing number of programs continue to generate enthusiasm.
Source: https://u.today/first-crypto-etf-just-launched-in-the-us
The ETF, called the Crypto Industry Innovators 30 Index, will be on the public listing of cryptocurrency companies such as Coinbase, the largest cryptocurrency exchange in the United States.
Only "pure-play" names with "material activity" in the industry, and at least $ 100 million in assets will be included in this index.
While Bitwise launched the first "crypto" ETF, there are a number of ETFs targeting blockchain and mining companies.
However, the US Securities and Exchange Commission (SEC) has not yet approved an ETF that directly tracks the price of bitcoin, as a growing number of programs continue to generate enthusiasm.
Source: https://u.today/first-crypto-etf-just-launched-in-the-us
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