With craze beginning to take hold among investors looking to take advantage of the incredible rise of cryptocurrencies such as Bitcoin following 500% increases year to date (or more), finding creative ways to invest in such vehicles has continued to be the focus of a small, but growing, group of industrious speculative investors.
Cryptocurrencies such as Bitcoin have begun to experience traits similar to those of precious metals markets in which said cryptocurrencies will experience periodic increases or declines on global volatility or geopolitical concerns; as such, the allure of cryptocurrencies has become one of a defensive investment – a new asset class which promises to provide downside protection should markets begin to correct, or gains should financial markets continue to trade sideways.
One such way Canadian investors will soon be able to get their hands on the elusive cryptocurrency sector is a new exchange traded fund (ETF) set to be launched by Evolve Funds. The preliminary prospectus for the ETF has been submitted to Canadian regulators, with the proposed ticker symbol BITS.
Should this ETF launch according to plan, Evolve Funds anticipates significant interest, given the relative lack of investment options for market participants interested in gaining exposure to this sector.
Some vocal opponents to the cryptocurrency segment, however, have voiced concern over the long-term risks associated with such an asset class being more available to the masses.
Concerns over speculation and flash crashes are legitimate, and this asset class remains one which is largely untested, making this proposed ETF one which I intend to stay away from as a cautious long-term investor.Invest wisely, my friends.