Invest in the Cryptocurrency ETF using the Bitwise Asset Managemet investment fund
The rise of digital currencies has just begun and one of the largest funds in the world in terms of investment in cryptocurrencies launches its ETF, thus allowing investment funds to invest in cryptocurrencies in a less risky and having a legal framework.
What is an ETF? The name ETF comes from the words Exchange Traded Fund. Technically the ETF is an investment fund, with the difference that it is listed as an equity and in the United States.
Some of the advantages of investing in an ETF is that it gives the investor the possibility to diversify the portfolio and at a low cost. Unlike common mutual funds, the ETF has intraday liquidity, which allows the investor to buy and sell on the day.
ETFs usually replicate all types of assets, we have to take into account that technically you are replicating the performance of one or more assets.
The Cryptocurrency ETF has the name of Bitwise Hold 10, this “Fund” seeks to build an Index that weighs the 10 cryptocoins with the highest weighting in the digital currency market.
So far the ETF seeks to replicate bitcoin with a weighting of more than 50% of the market, followed by, Ethereum 20%, Ripple 9.4%, Bitcoin Cash 6.4%, Litecoin 2.6%, Stellar 2.3%, Dash 1.3%, Monero 1.1%, Zcash 1.0% and Ethereum Classic 1.0%.
This is not the only ETF that can be bought in the United States stock exchange, there is also the Bitcoin ETF that tries to match the price of the cryptocurrency.