Cryptocurrency ETF ?” How It Benefits Investors

   03 Aug 2022, Wednesday      245       Finance
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Cryptocurrency ETF ?” How It Benefits Investors

All the leading cryptocurrencies like Bitcoin, Ethereum, etc. can now be traded as cryptocurrency ETF. The ETF provides a safer way of scooping the benefits of these cryptocurrencies without getting any direct exposure. Thus, this situation protects the investors from the frauds, regulation issues and other difficulties that come along with the cryptocurrencies. 


Apart from the protection, the idea of cryptocurrency ETF offers other benefits; a few are as discussed below:

  1. Diversification: Various crypto funds in India combine several crypto assets to offer a diversified basket for investment. It helps the investors earn the best from the income multipliers while spreading the risk. Thus, the investors get to enjoy double whammy of higher returns and enhanced safety of funds when they choose to invest in cryptocurrency funds. 
  2. Dispensing direct exposure to cryptocurrencies: Especially the newbies who want to invest in cryptocurrencies but don’t want to deal with managing cryptocurrency wallets, cryptic keys and other hassles, can get the exposure to this investment niche without dealing with these assets directly.
  3. Readymade platform to invest: The ETFs of the crypto assets are rolled out by the existing banks or brokerage firms that investors are well-acquainted with. Since no additional step is required to trade in ETFs, the idea seems appealing as well as time-saving to all.
  4. Availability of regulated platforms: ETFs are traded through regulated companies and exchanges. Thus, it is just a new product available on a trusted platform. It helps get a shield from the frauds and cyber scandals that are part and parcel of dealing in cryptocurrencies. Since the exchanges or trading companies are regulated and checked regularly on compliance parameters, the investors can enjoy better levels of safety.
  5. No fear of loss of access: All the cryptocurrencies are to be kept in digital wallets. It is a cryptic key-protected solution. The users face a lot of trouble if they are locked out of their own wallets. They land up paying money to get the wallet unlocked to access their funds, which is certainly not a pleasant idea. ETFs come with the advantage of liquidity and there is no key to remember to access the earnings. 
  6. Access to multiple digital assets: The companies that design crypto funds in India work on ETFs too to help investors savor the essence of various types of digital assets. By investing in ETFs, the investor can leverage from Layer1, Layer2, MetaVerse, Gaming. NFTs, and several different digital assets through a single product. Thus, they need not bear the cost that comes with investing in every product individually.

However, the ETFs are not as liquid as cryptocurrencies and cannot be used to complete transactions. So, if you want to add to your earnings by using ETF as an investment vehicle, then only consider it as an alternative. In near future, with growth in demand of ETFs, the investors may find various products to pick from and further enrich their portfolio. To know more about ETF, you can reach experts at Fortuna Capital, one of the leading crypto funds in India that have yielded appreciable returns for the investors.

Niishi Singh

Nishi singh rajput


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