Crypto Going Mainstream Could Be Fabulous For Fintech ETF

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As enthusiasts and other market participants know, cryptocurrency, led by bitcoin, is gaining in importance.

This rise is only in its early stages and as it gains momentum it has implications for other assets including ETF ARK Fintech Innovation (NYSEARCA: ARKF). While the ARK exchange-traded fund does not provide direct ownership of bitcoin or other digital coins, it is an established force in the crypto-correlated ETF space.

This is significant at a time when more and more investors are turning to crypto. A recent survey by Ziglu, a UK-based banking, exchange and investing app, indicates that more and more investors are embracing crypto.

Ziglu’s study found that 63% of crypto investors have transferred money into crypto from other types of investments, as people seek long-term alternatives and ways to diversify, with savings accounts and cash ISAs by far the largest source of investment in crypto assets. ” according to the firm.

These are significant trends for ARKF due to its broad reach into the crypto ecosystem through equities – a feature that makes the ETF attractive to a large audience of crypto-aware investors who might not be ready for it. direct ownership. There are other sources of attraction with ARKF that may be of interest to long-term investors as well.

“More than a third (35%) of cryptocurrency investors say their main reason to buy digital assets is to find another long-term investment, while the same number say their main motivation is to diversify. their holdings. 30% say they are attracted to the performance of cryptocurrencies, ”Ziglu adds.

More and more investors approaching crypto as a long-term investment are highlighting the potential benefits for ARKF, as the fund is exposed to crypto exchange operators and other associated crypto platforms. Speaking of exchange traders, such as the ARKF Coinbase (NASDAQ: COIN) component, these companies play a vital role in the growing willingness of investors to embrace digital assets.

“About a third (32%) say they look to crypto trading platforms as one of their sources for advice on how to invest, but almost as many (31%) rely on advice from their family or their friends while 22% say they follow experts on social media and 12% rely on ads on social networks, ”notes Ziglu.

As noted above, one of the main advantages of ARKF is that it can be responsive to crypto prices without subjecting investors to all the volatility.

Bitcoin prices have climbed more than 70% in the past three months, with other cryptocurrencies including Ether, Litecoin and Dogecoin also registering strong gains, although they generally remained in below previous records due to recent market volatility, ”concludes Ziglu.

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The opinions and forecasts expressed herein are solely those of Tom Lydon and may not come to fruition. The information on this site should not be used or interpreted as an offer to sell, a solicitation of an offer to buy or a recommendation for any product.

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