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Author: Admin | 2025-04-27
ETFs. They are open only to investment firms, accredited investors, or high-net-worth individuals and are not accessible to the retail public. They tend to have a high minimum investment amount, and each purchase of shares is accompanied by a lockup period for investors. Crypto ETPs ETFs are one variety of exchange-traded products (ETP). Crypto ETPs, when discussed, refer, however, to those that specifically hold debt securities issued by special purpose vehicles (SPVs) that hold the underlying crypto assets. The SPV uses the crypto as collateral to issue the ETPs, which are traded on exchanges. Crypto ETPs fall under the Securities Act of 1933 and are less regulated than ETFs. Spot Crypto ETPs, in other words, are not investment companies registered under the Investment Company Act of 1940. As a result, shareholders do not have the protections associated with ownership of ETF shares. Another difference is that crypto ETFs can create and redeem shares based on market demand, helping the share price align with the fund's net asset value. Crypto ETPs typically have a fixed supply of shares that trade at market-based prices which can deviate from the underlying crypto value. Companies That Hold Crypto Investing in companies that hold cryptocurrencies on their balance sheet is another way to invest in crypto without owning the digital tokens. Some publicly listed companies hold a large number of bitcoins. For example, MicroStrategy (MSTR) owned about 214,000 bitcoins as of May 2024. Galaxy Digital Holdings (BRPHF) and Tesla (TSLA) are other publicly listed companies with bitcoins on their balance sheets. Crypto-Related ETFs Plenty of ETFs offer diversified exposure to companies that engage with blockchain technology or crypto companies. For example, the Amplify Transformational Data Sharing ETF (BLOK) holds a portfolio of companies that develop and use blockchain technologies.Is It a Good Idea to Invest in a Crypto ETF?Crypto ETFs are designed to mimic the assets so investors can gain exposure to significant price fluctuations. However, because prices vary so much, there is more risk involved in crypto ETFs. If you're considering adding these to your portfolio, speaking with a financial advisor about your specific
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