The first wave of crypto ETFs allowed investors to onboard crypto assets into traditional brokerage accounts – and tax-advantaged retirement accounts. Given the long-term return potential of cryptocurrencies, that’s a win-win.
But cryptos are still volatile. Last week’s $19 billion leveraged wipeout in bitcoin surpassed the wipeout at the Covid bottom in March 2020. And the FTX collapse in late 2022.
Crypto ETFs Might Not Hold Good Income PotentialInvestors in traditional assets like the upside potential of crypto. But the downside volatility is a bit much to stomach.
They want products that take some of the extreme swings out of it, even if it means a lower upside.
Today, a new wave of ETFs are coming online. They boast higher fees, but more active management.
There are currently 155 crypto ETF filings tracking 35 different digital assets.