The Traditional Method financial Institutions are looking for new ways to attract investors access to digital assets via exchange-traded funds (ETFs).
Henry Jim of Bloomberg Intelligence reported on the 27th June about three ETFs which would give investors access to Bitcoin, Gold, EthereumThen, MicroStrategy.
Bitcoin ETF with Gold Stack
Tidal Investments has filed with Quantify Chaos Advisors a joint prospectus of a new ETF providing indirect exposure to Bitcoin The Gold Standard
The filingThis ETF leverages investments so that investors can gain exposure to these assets without having to purchase them directly. This ETF will invest in Bitcoin Futures, Gold Futures, Cash, Reverse Purchase Agreements and other Bitcoin- or Gold related ETFs.
It combines Bitcoin with Gold to create a complementary strategy despite the fact that there is no correlation between them. The ETF aims to reduce short-term fluctuations in the market and offer stable investment options.
This filing states:
“The Fund uses leverage to ‘stack’ the total return of holdings in the Fund’s Bitcoin strategy together with the total returns of holdings in the Fund’s Gold strategy. Essentially, one dollar invested in the Fund provides approximately one dollar of exposure to the Fund’s Bitcoin strategy and approximately one dollar of exposure to the Fund’s Gold strategy.”
MicroStrategy ETF
T-Rex Group is another ETF that has been in the news. They have applied to SEC to offer MicroStrategy investors leveraged 2X positions.
Bloomberg’s senior ETF analyst Eric Balchunas noted that if the funds were approved, they would expose investors to about 20 times the typical volatility of the S&P 500. He stated:
“These are a near-lock to be [the] most volatile ETFs ever seen in the US, [and they] will likely be in the neighborhood of 20x the volatility of SPX. The ghost pepper of ETF hot sauce.”
MicroStrategy It is also the biggest corporate Bitcoin owner, holding 214,400 BTC. That’s more than 1 percent of Bitcoins available. Michael Saylor has been a BTC proponent for years and believes the company will adopt it. continue with its BTC acquisition.
Ether Option Income Strategy (ETF)
YieldMax has also filed an ETF for a fund that is based on the ETFs of YieldMax. spot Ethereum ETFs Calls for Income. Investors can gain indirect exposure to ETH – the second largest digital asset in terms of market capitalization.
As per Jim:
“[The ETF will] invest in spot ETH ETFs, sells options on them for the premium. Will have a cap on upside of performance of the underlying Ether ETF.”
In addition, it was clarified in the filing that the Fund did not directly invest in ETH and other digital currencies. The fund avoids directly investing in derivatives tracking ETH performances and doesn’t seek to gain direct exposure to spot or cash prices of digital assets.
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Source: cryptoslate.com