Can investing via ETFs help you ride wild crypto wave?

economictimes.indiatimes.com:

Is it possible for you to have crypto in your portfolio without actually owning the asset? Do you feel the process of crypto is complicated? Exchange-traded funds (ETFs) that invest in Bitcoin or a basket of virtual assets, including several cryptocurrencies, might be a solution to navigate the crypto Wild West. Are these investment products available to Indians? What are the dos and don’ts? Aseem Gujar & Partha Sinha explore… When the US SEC allowed the first crypto-based ETF to be listed in October 2021, Bitcoin’s price had rallied to its record high of $67,000. Though the ETF didn’t invest directly in Bitcoin and instead bought its futures contracts, it was still a key event in crypto’s history as it signalled regulatory and institutional acceptance in the world’s largest financial market. Crypto futures are derivatives of virtual currencies similar to products on stocks, commodities, and other fiat currencies that are traded on exchanges globally. In recent months, several types of ETFs linked to crypto have debuted globally — some invest in virtual assets directly, some stick to futures, while others focus on stocks of companies that are in blockchain & other crypto-related areas. The first US ETF had created market history as it attracted $1 billion within days of its debut. But ETFs don’t just bring higher inflows, they also allow for a wider investor pool. Institutions and individuals are drawn to crypto ETFs as they are regulated investment vehicles.

Did you Know?

You can earn interest like bank savings account on your Bitcoin wallet

What are ETFsAn exchange-traded fund (ETF) is a basket of securities that trades on a bourse just like a