ETFs are one of the simplest ways for investors to diversify their exposure to a specific theme or asset class. In the early days of cryptocurrency, one of the most difficult aspects of investing in Bitcoin and other cryptocurrencies was determining how and where to buy them. Cryptocurrency ETFs make investing in Bitcoin as simple as buying common equities. There are currently a number of cryptocurrency-themed ETFs available, and the number is growing. However, keep in mind that these ETFs have significant management costs. Here are the top eight cryptocurrency exchange-traded funds (ETFs) with exposure to cryptocurrencies, crypto futures contracts, or companies with strong blockchain exposure.
Is there a bitcoin stock or exchange-traded fund?
Bitcoin has made its debut on the New York Stock Exchange, after years of wild ups and downs on cryptocurrency marketplaces. ProShares, a financial firm, created the first exchange-traded fund tied to bitcoin on October 19. The BITO ETF (ticker: BITO) does not invest in bitcoin directly.
Choose a Cryptocurrency Exchange
You won’t be able to buy cryptocurrencies from a bank or an online brokerage like Fidelity or Vanguard; instead, you’ll need to use a cryptocurrency trading platform. There are numerous cryptocurrency exchanges available, ranging from simple to complicated dashboards for advanced traders.
Most cryptocurrency exchanges will let you buy Ethereum because it is so popular, but we recommend sticking to a handful of the more popular exchanges like Coinbase, Gemini, or eToro. Ethereum is also one of the few types of cryptocurrency that can be purchased via services such as Venmo or PayPal. Different platforms have different pricing, security measures, and other features, so doing some research before signing up is a good idea.
What crypto options are there for me with my Vanguard account?
Because Vanguard is an IRA custodian and broker, its customers can participate in the cryptocurrency market in a variety of ways. Any over-the-counter bitcoin or crypto fund, such as the Bitwise 10 Crypto Index Fund (BITW) or Grayscale Bitcoin Trust (GBTC), is available to Vanguard consumers. Customers can also invest in bitcoin mining firms like Riot Blockchain and Argo Blockchain, which are publicly traded. They can also invest in publicly traded companies that own bitcoin and keep it on their balance sheets, such as MicroStrategy.
Unfortunately, none of these alternatives have the same advantages as holding bitcoin.
What have top Vanguard executives said about cryptocurrencies?
The company’s top executives have expressed their skepticism of bitcoin in particular, as well as the crypto sector as a whole. While Vanguard praises blockchain technology, it considers cryptocurrencies to be nothing more than a highly speculative asset class in their current form. As a result, Vanguard has made the corporate decision to exclude its customers from investing in cryptocurrencies.
What is the likely future of crypto on Vanguard?
Vanguard appears no closer to enabling bitcoin ownership than it was years ago, with no clear road to crypto acceptance and no plans allegedly in the works to reverse its anti-crypto attitude. For the time being, Vanguard consumers will have to make do with the over-the-counter crypto alternatives described above if they wish to invest in this asset class.
What is the best way to invest in cryptocurrency?
You’ll need a “wallet” an internet tool that can store your cryptocurrency to buy cryptocurrencies. In general, you open an account on a cryptocurrency exchange and then use real money to purchase cryptocurrencies like Bitcoin or Ethereum.
Are bitcoins held by Bitcoin ETFs?
The Bitcoin ETF prevents investors from holding and trading Bitcoins on larger trading platforms. Because the Bitcoin ETF is an investment vehicle, investors can short sell shares if they believe the price of Bitcoin will fall in the future.
Is it wise to invest in cryptocurrency?
In 2021, investing in cryptocurrencies has the potential to make you extremely wealthy. However, you could lose all of your funds. How can both be true at the same time? Investing in crypto assets is risky, but it can also be incredibly lucrative.
If you want direct exposure to the demand for digital money, cryptocurrency is an excellent investment, while stocks of firms with cryptocurrency exposure are a safer but perhaps less rewarding alternative.