Crypto ETFs will provide decent exposure for digital assets, and while the fear of missing out is already kicking in, there’s a better way.
Filings and approval of crypto exchange-traded funds (ETF) have taken centre stage among corporate firms. Its most recent development is applying for an ether ETF spot regulatory approval by asset managers, ARK Invest and 21Shares. In recent years, the crypto industry has gained more attention from institutional players.
The filing from ARK 21Shares is the first attempt at listing ETH in a U.S. fund that gives it direct access to the second largest cryptocurrency. This attempt follows a wave of desperate efforts from companies for a spot in Bitcoin ETF, including ARK and 21Shares.
A crypto ETF (spot and futures) is a welcomed development for many crypto investors because it would serve as a gateway for institutional liquidity inflow. This is important as an increase creates the needed traction for an upward price action that the market desperately needs. This narrative was evident as Bitcoin and Ethereum prices reacted to news of this development before retracing.
What Is Better Than A Crypto ETF
While a Bitcoin ETF provides a financial instrument for institutional investors to extend their exposure to digital assets, holding them directly in your wallet is better. The current frenzy around Bitcoin and Ethereum ETF is a win for the industry. However, it is essential to remember that joining the bandwagon adds to the huddle of owning a digital asset.
In conclusion, instead of using an institutional cushion to access cryptocurrencies, buying from an exchange and keeping a non-custodial wallet is better. It is important to remember this because gaining access to the market through exchange-traded funds makes you a secondary market participant. Meanwhile, having direct access affords you ease and speed of market participation and eliminates third-party-related hassles. Given the current trajectory, it is very likely that ETF fillings and approvals will follow soon and holding your digital assets might be a good idea.
Do you disagree with the narrative that holding tokens directly is better than ETFs? Please let us know what you think in the comment section below.
Content on this website is the author’s opinion or report based on his/her discretion and should not be taken as financial advice. In no event will Coindailypress be liable for loss of any kind.
