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With the rise of cryptocurrency-linked exchange-traded funds, many investors believe they’ve found a safer way to dip into the volatile world of bitcoin
BTCUSD, ether ETHUSD and other digital assets. While crypto ETFs offer a layer of protection direct crypto investment lacks, they’re not without their own set of risks. Here’s what you need to know to protect your crypto holdings:
1. Keep it real: Investing in crypto through ETFs is generally safer than holding cryptocurrencies directly. You’re not dealing with digital wallets, private keys or the risk of crypto-exchange hacks. Yet this apparent safety net can lull investors into a false sense of security. Remember, the underlying assets are still highly volatile, and this volatility will be reflected in the ETF’s value.
This post was originally published on Market Watch
