The first negotiable mutual fund (ETF) for Bitcoin futures (BTC) was released in the United States on October 19, 2021. Since then, many other cryptocurrency investment products have been released in various markets.

The first ETF, the Prosciences Bitcoin Strategy ETF, became the best trading ETF of all time at its inception, and soon after, several other Bitcoin futures contracts were released in the United States, offering investors a wide variety of offers. Investment options.

For Martha Reyes, head of research at the Bequant Cryptocurrency Trading Platform, these choices are important. In an interview with the Cointelegraph, Reyes noted that in traditional finance, ETFs “have proven to be incredibly popular in recent years and the ETF’s assets are expected to reach $ 14 trillion by 2024.”

Reyes said market-side investors may now decide to invest in cryptocurrencies if they have “low cost, flexibility and convenience [ETF], especially because they do not need to keep the cryptocurrencies to themselves”.

According to Reyes, storing cryptocurrencies can be “a technical hurdle for some people who are not cryptocurrencies”. The circulation of ETF cryptocurrencies allows investors to diversify their portfolios through cryptocurrencies, although some want to access the market “through a basket that reflects various trends in this rapidly growing market”. She added:

“Others prefer to be more practical or combine strategies. The key is that investors have choices.”
In fact, several options have been launched in recent weeks. The American company WisdomTree has placed the cryptocurrency exchange (ETP) product, Crypto Mega Cap Equal Weight ETP, on the Euronext stock exchanges in Paris and Amsterdam.

The product traded with the MEGA ticker symbol is supported by physical cryptocurrency with Bitcoin and Ether (ETH) and is updated quarterly. WisdomTree also released the ETP WisdomTree Crypto Market (BLOC) and the WisdomTree Crypto Altcoin (WALT).

Similarly, in December, Bitcoin Capital AG issued two ETPs on the Swiss stock exchange SIX, giving investors access to Bitcoins and Airtime. These products are actively managed by FICAS AG and are available to institutional, commercial and private investors.

So far, these products have been successful and new options are being released regularly, substantially expanding the opportunities for market investors. According to some experts, these products are part of the next step that needs to be taken to expand cryptocurrencies.

Investment products and acceptance
According to Reyes, participation in these investment products is still “primarily institutional”, especially in countries such as the United States, where only futures are traded. “Small investors are aware of the additional cost of restructuring in the future compared to spot ETFs, which means lower returns compared to the base,” he said.

Reyes added that “we will probably have to look at spot production for wider retail involvement.”

Speaking to Cointelegraph, Sui Chung, CEO of FCF-regulated cryptocurrency index supplier CF Benchmark, said cryptocurrency investment products are “important large-scale application guides” and that although the company “wants to see a broad path” , the results could still be significant. :

“The impact of these products on attracting new investors and capital to the cryptocurrency should not be underestimated and how it will accelerate long-term implementation.”
Karan Sood, CEO and CEO of Cboe Vest, an asset management partner at Cboe Global Markets, told Cointelegraph that increasing the involvement of diverse investors is “good for the market” because it increases liquidity and helps create markets. ». Infrastructure “.

The court said that before investing, investors should carefully consider their options, as some products were initially released to give investors access to the cryptocurrency market, while others “try to solve the problem of extreme bitcoin instability”.

According to the court, instability is “located in the field of cryptocurrencies” and sales, in which bitcoin and other cryptocurrency assets lose more than half of their value, are quite common, so you can expect more than 20 reductions. % Added:

What is new, however, is the availability of funds that allow investors to access B

Source: CoinTelegraph