Article 105 – A Bitcoin ETF

So how can one combine the 2 hottest areas of investments in the world (cryptocurrencies and ETFs)? The most popular cryptocurrency is bitcoin, lets explore what that would be.

So how can one combine the 2 hottest areas of investments in the world (cryptocurrencies and ETFs)? The most popular cryptocurrency is bitcoin, let’s explore what that would be. With the recent restrictions, what can one watch out for?   


How about a A bitcoin ETF, it would allow you to diversify without actually owning the asset (bitcoin) itself. It would relieve you from the headache of the storage and security aspect of holding bitcoin ( Lost Passwords Lock Millionaires Out of Their Bitcoin Fortunes ), and also there’d be no need to deal with cryptocurrency exchanges. 

This will also mean if you think the price will go down, you can short sell bitcoin, this is not possible by investing in bitcoin itself. Now those don’t exist in the US market yet, Canada has recently launched one (ticker is BTCC on the Toronto Stock Exchange). And while we wait for one to come so we can invest in it via a more familiar exchange, what else can we look at? How about the technology that underpins bitcoin, blockchain. 

Blockchain exchange-traded funds (ETFs) own stocks in companies that have business operations in blockchain technology or in some way profit from it. A good example is BLCN is one of these ETFs.BLCN tracks the Reality Shares Nasdaq Blockchain Economy Index, which gauges the performance of companies involved in developing/researching/supporting/innovating/utilizing 
It outperformed the broader market over the past 12 months, posting far higher total returns than the S&P 500’s total return of 19.1% . 

YTD return has been 23.20%
Performance over 1-Year:  85.44% 
Expense Ratio: 0.68% (very decent, especially when considered in the context that bitcoin ETF expense rations may be around 2%)

These numbers are nothing to turn your nose up at, they certainly can keep your portfolio going while we wait for a full fledged bitcoin ETF to come to us. 

Let me know your thoughts on this or ETFs and any questions you may want answered as to why they are gaining tracking over individual stocks .  

Also  if you want more of these types of idea generation and explanations with more information on how to understand the basics of how to use ETFs to build strong portfolios that give a better chance of a lower cost passive investing journey, you may sign up for FREE newsletters at YouBackYou

Ps: This is not investment advice but purely for education and enlightenment. Full disclosure, I do own BLCN  and intend to buy more in the future. 

Read Also: IPO-Tracking ETFs
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