Learn about investing, trading, retirement, banking, personal finance and more.
While there aren’t that many ways to use institutional-level, regulated vehicles to get exposure to bitcoin and other cryptocurrencies, there are some, and the market will likely expand.
Money managers are finding ways to offer managed investments that offer exposure to cryptocurrencies, despite the hurdles presented by regulators and skepticism from large financial companies.
On the over-the-counter market OTCQX, you can buy shares of the Bitcoin Investment Trust from Grayscale (Nasdaq: GBTC). This fund has seen massive gains recently but does come with a 2% fee. The Chicago Mercantile Exchange (CME) has stated that it would like to start trading cryptocurrency futures, but it may be a little time before this becomes a reality, due to significant red tape and guidance needed regarding cryptocurrencies.
In the unregulated cryptocurrency exchanges that exist internationally, it is possible to hold futures positions on various cryptocurrencies, and some of these exchanges are well-established, but actually holding investments with these exchanges comes without any protection such as SIPC insurance in the US financial markets. Meanwhile, more and more hedge funds investing primarily in cryptocurrencies have hit the market, but, once again, these are for accredited investors with a high net worth.
Cryptocurrency mining outfits such as Macro Energy’s Digital CC are traded as stocks on international exchanges, where investors can take part in the dividends of the cryptocurrency mining. Genesis Mining, out of Iceland, offers institutional-level investors to take part in their mining profits, part of which is cloud mining that is paid for using customer-level investment participation by renting the rights to profits for a certain bandwidth of mining capability. The cut that comes off the top of those profits will partially go to the international hedge fund investors. Iceland is an ideal spot for bitcoin mining due to low energy costs, and low temperatures which naturally keep the mining machines cool.
In San Francisco, multiple ventures are seeking to bring cryptocurrency funds to the market. One of which, Bitwise Asset Management, launched their Hold 10 Index in October of 2017 with funding from the co-founder of AngelList, Naval Ravikant. Hold 10 is a private fund available only to those who meet SEC qualifications as accredited investors with over $10,000 to invest. It is designed to passively hold the top 10 cryptocurrencies.
The incentive to use it as opposed to a DIY approach is partially that the major cryptocurrency exchanges limit the amounts that investors can buy in many cases, and there tends to be a lot of hassle when dealing with significant amounts in different currencies, so that fund would solve those problems for you. The Winklevoss twins, who helped found Facebook, were shot down by regulators in March with their proposal to start a different cryptocurrency ETF. Scouring the internet for more information regarding possible entry points for such exposure will be necessary since the markets and regulations are always changing. But be assured that more investment options will come online as time passes.
Investing in stocks carries inherent risks such as capital loss, market volatility, and risk misestimation. Learn about these risks, the implications of margin trading, and the importance of investing within your risk tolerance levels for successful stock investing
Explore how 529 plans can affect your child's future financial aid eligibility. Understand the role of 529 plans in financial aid calculations, the implications of parent-owned vs. non-parent-owned accounts, and strategies to optimize educational savings.
Discover how much money you need to start investing. Learn about the importance of an emergency fund, the costs of various investment types like stocks, ETFs, and mutual funds, and the role of robo-advisors. Understand the benefits of a monthly investment plan
Discover the meaning and implications of turnover ratio. Learn how it's used in inventory management, mutual funds, and asset efficiency to gain deep insights into company operations. It's a crucial tool for making informed financial decisions.
Learn about market-on-open orders, a key trading strategy that allows traders to buy or sell shares at the opening price of a trading day. Discover how this order type functions, its benefits, and how it compares to other order types like market-on-close orders.
Dive into the world of Annual Percentage Rate (APR) and discover its impact on loans, credit cards, and investments. From decoding its basics to distinguishing between APR and interest rate, this guide offers clarity on making informed financial decisions. Let APR be your financial compass
Explore the potential of penny stocks with our beginner's guide. Learn how affordable penny stocks can yield significant returns, how to leverage advanced tools like Tickeron for research, and how to use volatility to your advantage. Start your penny stock trading journey today.
Explore the differences between HELOCs and home equity loans. Understand their pros and cons to make an informed decision for accessing your home equity. Learn about fixed rates, flexible options, tax benefits, and more.
Learn about the DAX Stock Index, Germany's prime financial indicator, representing 40 leading companies. Understand its history, methodology, and global significance. A vital guide for investors analyzing German and European economies, it reflects trends and impacts various industries.
Explore the 401(k) contribution limits for 2022 & 2023. Discover the changes made by the IRS and their implications. Learn about the employee, combined, and Roth 401(k) limits, including the benefits for older contributors. Stay informed and optimize your retirement savings strategy.