ETF’s are one of the safest trading options on the market with other products such as Index funds and mutual funds operating on a similar platform. VanEck, one of the biggest investment companies in New York are aiming to start providing the VanEck Vectors Bitcoin Strategy ETF. The ETF rather than invest in bitcoin and crypto itself is set to provide investors with access to bitcoin companies and services making use of much more reliable assets.
Considering the volatility of Bitcoin itself, this will provide a valuable product to many looking to invest in the future technology while minimizing the prospect of losses for clients of the product. However the proposal sent to potential investors also did explain the risk associated with the service as if the adoption of bitcoin does slow down, the value of the fund will also fall accordingly.
“The Fund seeks to achieve its investment objective by investing, under normal circumstances, in U.S. exchange-traded bitcoin-linked derivative instruments (“Bitcoin Instruments”) and pooled investment vehicles and exchange-traded products that provide exposure to bitcoin (together with Bitcoin Instruments, “Bitcoin Investments”).”
This isn’t the first time a Bitcoin ETF proposal has been formed as previously the Winklevoss twins also attempted to launch a similar fund to expand the bitcoin investment markets. Sadly this remained a unfulfilled venture as it met with red tape from the government. ETF’s remain one of the most widely traded funds as the provide a simple way to diversify ones portfolio, but with the dangers many perceive with direct investment into crypto, a ETF provides legal safety nets too .
To conclude, the VanEck investment company are attempting to launch a Bitcoin ETF which will allow US customers to invest in a number of bitcoin related organizations.