Asset managers have found alternative investments such as cryptocurrencies and nonfungible tokens (NFTs), a popular way to reach this new investor group. I have been actively trying to predict the future for alternative assets as a result of my expansion into cryptocurrency.
The SEC has allowed , the first public-tradeable futures-based cryptocurrency futures exchange-traded funds (ETF), to be traded on Wall Street. This is one of the most significant developments in cryptocurrency. This is a significant development for crypto investors for several reasons.
1. As an alternative investment option, cryptocurrencies like Bitcoin and Ethereum are becoming more popular.
2. This ETF has given cryptocurrencies more credibility as an alternative investment option.
3. This ETF will likely increase awareness of crypto investing among the general public, which could lead to increased demand for these assets and a rise in prices.
Although the supporters of the bitcoin ETF are happy with the development, many believe that the fund lacks an important function. The current ETF tracks bitcoin’s future performance. You don’t actually hold any bitcoins when you invest in or sell your stake in the fund.
Some criticizing the ETF would prefer a fund that tracks bitcoin and allows you to redeem it to your crypto wallet. This is because it is a bearer asset which is highly liquid in an open market that is open 24 hours a days/seven days per week. This ETF is not beneficial to them. They argue that if you wish to purchase bitcoin you can open an account with a third party cryptocurrency wallet like Metamask, Coinbase or Binance.
The history of bitcoin has been volatile. This made it difficult for the SEC to allow a cryptocurrency ETF for many years. The SEC resisted this movement because anyone who tried to launch a crypto ETF could not prove that they can protect investors from market resistance and manipulation techniques. The chairman stated that the SEC will be trying to protect investors with the new ETF.
It will be interesting to see if the ETF actually helps or hinders crypto investing. I believe that the crypto-tied ETF will open up doors for people who were resistant to cryptocurrencies or uninformed about them in general. This offering will make it easier to invest in digital assets.
This development opens up the possibility for the SEC’s future to allow cryptocurrency investors to invest more traditionally. Soon, people will be able buy, sell, and hold physical bitcoin and other digital currencies in secure crypto wallets integrated into the Dow and NASDAQ.
The buying power of cryptocurrency is expected to increase and will continue to grow. More businesses in the U.S. accept it as a method of payment. There are many countries that are accepting cryptocurrency as legal tender. My company has seen the benefits of digital assets for investors to diversify their portfolios and sustain wealth. You can enjoy tax-advantaged growth opportunities by rolling the capital gains of your crypto and NFT assets into a qualified option zone fund (QOZF). This includes 10-year tax-free growth.