Beyond Protocol CEO Says Bitcoin ETF ‘Can Be a Mad Race’

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The first Bitcoin Futures ETF launched this week, crossing exchange-traded funds in the cryptocurrency world. Jonathan Manzi, CEO of Beyond Protocol, warns that enthusiasts and marketers can be on “a wild ride”.

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“The main function of ETFs to date has been to provide exposure to an asset class by following a basket of investments with a common link, for example oil, biotech, gold or natural gas. There are also stock index ETFs that track larger markets, like the S&P 500, ”he told Entrepreneur, adding that the basic idea of ​​ETFs is that one person can invest in an entire industry. with a single product instead of buying individual stocks.

Bitcoin, of course, is a cryptocurrency, not a sector, so where does an ETF come in?

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“Many traditional investors have yet to buy bitcoin; an ETF taps into this demographic, allowing those with accounts at large brokerage firms to continue to manage all of their assets under one roof, while continuing to gain exposure to bitcoin, ”Manzi explained, adding that the SEC-regulated funds can also be considered more secure than bitcoin for self-safekeeping.

“Anyone who has followed bitcoin – and crypto at large – for a while knows firsthand how such a roller coaster has been from obscure digital currency to world-changing technology. And while critics will point out the volatility, the fact remains that bitcoin has outperformed all other major legacy assets in existence since 2009, ”Manzi concluded. “The last time we saw something like this as a company was the emergence and eventual global dominance of the Internet itself. And while there are many other cryptocurrencies out there with cases wonderful and innovative use, bitcoin continued to thrive, driven by the purity and simplicity with which it was designed. Its inherent characteristics made it uniquely suited as the people’s choice for monetary freedom – a hedge against tyranny for the masses, built with an immutable code.

He advised investors to “proceed with caution” and “monitor the initial performance of these new ETFs and limit your investments in BTC to holdings for now”.

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