The number of bitcoin-based ETFs is quite lagging in the U.S market. This is not to say that they do not exist entirely, as the Securities Exchange and Commission (SEC) has previously expressed its support in seven blockchain-based ETFs this year. Furthermore, CBOE and CME Group has supposedly launched a bitcoin-based future near the end of 2017. This shows that there is interest, however, more is required.

So, why bitcoin-based ETFs? According to the claims made, crypto investors will have the ability to investment in a portfolio that has lowered levels of risk. This will also help introduce the cryptocurrency market to traditional investors who have been doubting its existence due to its high volatility.

In discussing the overall value of a bitcoin-based ETF, Global Head of Research at Bitwise Asset Management, Matthew Hougan, recently shared that establishing a value is difficult.

In particular, he shared:

“The crypto ecosystem hasn’t evolved an agreed-upon framework to value crypto.”

This statement once again deals with price volatility, which seems to be a concern even for the SEC. Despite the obvious cons with the digital asset, Hougan believes that cryptocurrencies are going nowhere and will eventually become an alternative to money. He also said that the concept of money won’t “begin and end with gold”.

When addressing the notion of exposure within the crypto sphere, Todd Rosenbluth, Director of ETF and mutual fund research at CFRA Investment Research, believes that cryptocurrencies have lost some of its charm– adding that it’s due to external factors.

He said:

“The challenge with cryptocurrency-oriented investing is it’s hard to gain exposure, as there are no U.S listed ETFs”.

While Hougan seems to have a neutral opinion on bitcoin, stating both the positives and negatives, he still believes that investors should be cautious. According to Bitcoinist, Hougan predicted a 60-40 investment for optimal performance, in which the former represents the percent of bitcoin one should investment in and the latter being bond portfolio.

Clearly, the crypto market has a lot of room for growth. Based on the several experts who have a positive viewpoint on bitcoin-based ETFs, it could possibly help to expand the market and help deal with price volatility.

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