Your Funds: Bitcoin ETFs shouldn’t excite you … yet | Business News
Cryptocurrency remains a highly volatile asset class. In investment terms, it’s still new, and there are some well-founded fears that have skeptics wondering what, exactly, drives its market value and whether that worth can be sustained.
Speaking historically, investors have a tough time with volatile asset classes. Buying and selling at the wrong times, they get excited by gains and defeated by drops and the resulting performance is disappointing, even when the underlying asset gains in value.
ETFs will make it easier to ride along with crypto, but if you’re not prepared to go for the long haul, it’s likely not worth your effort.
The chatter beneath the headlines on the ProShares fund was all about the futures structure; that’s a legitimate concern, but dramatically less important than simply deciding if you want crypto now.
Still, you need to know how a futures fund will work and the potential trouble spots.
Futures-based funds…
