Should You Invest In Spot Ether ETFs? Here's What Experts Say
You can now invest in ether (ETH), the native token of the Ethereum blockchain, by putting money into one of the nine spot ether exchange traded funds that began trading Tuesday. But should you?
These ETFs have made getting a slice of the second-largest cryptocurrency by market capitalization easier via a brokerage account, just like you would do for other stocks and ETFs.
“Most investors are accustomed to holding securities in their brokerage accounts, and they’re unfamiliar with holding digital assets in digital wallets. By having a Bitcoin or Ethereum ETF, they can invest in these assets in a more familiar way,” said Douglas Boneparth, CFP and founder of Bone Fide Wealth.
Fidelity and Charles Schwab are among brokers that offer these products, and investors should check with their brokers to see if they have the option.
Despite attracting more than $100 million in inflows on their first day, ether ETFs have not really captured investor interest just yet.That's in stark contrast to massive inflows seen by spot Bitcoin ETFs that began trading in January.
If you're considering investing in crypto, be prepared for a rollercoaster ride, experts say.
“These are funds that don't have significant track records. There's a lot of volatility, and people really need to get used to what these types of funds are doing in the marketplace,” said Megan Gorman, a managing partner at Chequers Financial Management.
Although cryptocurrencies such as bitcoin (BTC) and ether have the potential to offer greater returns than a conventional 60/40 equity and fixed-income portfolio, it also comes with much greater risks.
“These are cryptocurrencies that have had incredible returns over their respective lives, and that’s also come with a
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