Are You Thinking About Investing in Bitcoin ETFs?

I am thinking about investing in Bitcoin ETFs. There may be others so I am sharing my research findings.

First Bitcoin ETFs approved by US regulators - The Verge

A Bitcoin ETF vs Traditional ETF

Bitcoin ETF is a type of ETF that tracks the price of Bitcoin. It is traded on traditional securities exchanges, such as the New York Stock Exchange and Nasdaq. When you invest in a Bitcoin ETF, you are not directly purchasing Bitcoin itself. Instead, you are buying shares in a fund that holds Bitcoin . (1)

The main difference between a Bitcoin ETF and a traditional ETF is that a Bitcoin ETF tracks the price of Bitcoin, while a traditional ETF holds a basket of assets (1). Additionally, investing in a Bitcoin ETF can provide a level of diversification and liquidity, while also reducing the risk of investing in a single cryptocurrency (2). 

REFERENCES:

(1) Shin, Laura. “Bitcoin ETFs Explained: What Are They & How Do They Work?” Coindesk.com. CoinDesk, January 11, 2024. https://www.coindesk.com/learn/2024/01/11/bitcoin-etfs-explained-what-are-they-how-do-they-work/.

(2) Mark, Julian and Gregg, Aaron. “As bitcoin enters the mainstream ETF market, here’s what to know”. Msn.com. “MSN,” 2024. https://www.msn.com/en-us/money/markets/as-bitcoin-enters-the-mainstream-etf-market-here-s-what-to-know/ar-AA1mP4eF.

oinMarketCap. “What’s Crypto ETF? - the Definitive Guide.” YouTube Video. YouTube, February 25, 2022. https://www.youtube.com/watch?v=FNg4ma_jfB0.

Bitcoin University. “Should You Buy the Bitcoin ETF?” YouTube Video. YouTube, January 10, 2024. https://www.youtube.com/watch?v=wp_byWLZGMY.

‌Why Invest in a Bitcoin ETF?

Investing in a Bitcoin ETF can be a great way to gain exposure to the cryptocurrency market without having to directly own Bitcoin.

The first-ever spot Bitcoin ETFs were approved by the SEC on Wednesday, January 10th, 2024  (1).

These ETFs are publicly traded investment funds that enable investors to gain exposure to Bitcoin without actually owning the cryptocurrency 2. Unlike cryptocurrencies that are traded on crypto exchanges, ETFs are traded on traditional securities exchanges, such as the New York Stock Exchange and Nasdaq  (2).

One of the advantages of investing in a Bitcoin ETF is that it provides a level of diversification. By investing in an ETF, you are not putting all your eggs in one basket.

Instead, you are investing in a basket of assets that track the price of Bitcoin 3. This can help to reduce the risk of investing in a single cryptocurrency.  Additionally, ETFs are generally more liquid than cryptocurrencies, which can make them easier to buy and sell (3).

However, there are also some downsides to consider before investing in a Bitcoin ETF.

One of the main drawbacks is that ETFs are subject to management fees, which can eat into your returns. Additionally, the value of an ETF can be affected by factors such as market volatility, interest rates, and geopolitical events (3).

It’s important to do your research and understand the risks before investing in any ETF.

In summary, investing in a Bitcoin ETF can be a good way to gain exposure to the cryptocurrency market without having to directly own Bitcoin. However, it’s important to weigh the advantages and disadvantages before making any investment decisions.

If you decide to invest in a Bitcoin ETF, make sure to do your research and choose an ETF that aligns with your investment goals and risk tolerance  (4).

REFERENCES:

(1) Browne, Ryan. “Here's what a bitcoin ETF actually means for investors.”, MSN.com. Jan 11 2024. https://www.msn.com/en-us/money/markets/heres-what-a-bitcoin-etf-actually-means-for-investors/ar-AA1mOlhu.

(2) Shin, Laura. “Bitcoin ETFs Explained: What Are They & How Do They Work?” Coindesk.com. CoinDesk, January 11, 2024. https://www.coindesk.com/learn/2024/01/11/bitcoin-etfs-explained-what-are-they-how-do-they-work/.

(3) Hallam, Nick, and Anita Hamilton. “Should You Buy a Bitcoin ETF? Weigh These 5 Factors First.” Barrons.com. Barrons, January 10, 2024. https://www.barrons.com/visual-stories/bitcoin-etf-risks-grayscale-ark-invesco-fidelity-ccbd04c4.

(4) Adams, Michael. “6 Best Bitcoin ETFs of January 2024.” Forbes, January 10, 2024. https://www.forbes.com/advisor/investing/cryptocurrency/best-bitcoin-etfs/.

Hallam, Nick, and Anita Hamilton. “Should You Buy a Bitcoin ETF? Weigh These 5 Factors First.” Barrons.com. Barrons, January 10, 2024. https://www.barrons.com/visual-stories/bitcoin-etf-risks-grayscale-ark-invesco-fidelity-ccbd04c4.

Thanks for reading.‌

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Why Financial Goals for Newbie Investors Should Include Mutual Funds

Are you a newbie investor?  Did you finally save up a little bit of money and you want to try to grow it?  Did you think to yourself; 'If Warren buffet can do it, you can too!'?  Investing in mutual funds is a good start to begin your investment journey, as opposed to investing in specific stocks. 

DID YOU KNOW?

• "More than 7,000 mutual funds trade in the United States alone, which is actually greater than the number of stocks traded domestically."  (Quote Source)
• "Many mutual funds are index funds (which are tied to a specific industry) so if you passionately believe in a certain sector of the market, there’s probably a mutual fund that’s made for you."  (Quote Source)

In USA, you can start with a minimum initial investment of $500 and then build on that.

(NOTE:  This is NOT professional financial advice.  These re just notes I gathered because I am interested in learning more.)

Here are articles to start educating yourself.

What Is the Minimum Amount of Money That I Can Invest In a Mutual Fund? 

6 Things to Know Before Investing in Mutual Funds 

How to Invest in Cryptocurrency Mutual Funds | The Motley Fool 

* * * *

IMPORTANT NOTES:

• Can you buy mutual funds outside of the US? “Because foreign jurisdictions are unable to regulate investment funds that are not registered in their jurisdiction, most prohibit the sale of foreign [including US] mutual funds to residents living in their countries. ...”  ~ More details: Financial & Investment Information | Washington, DC 

• Can you invest in mutual funds of other countries?  “Investing in international mutual funds is the same as investing in any other equity mutual fund. The money is invested in rupees and in return units of the funds are allocated to investors. The fund manager takes the money and invests them in the stocks of companies that are listed on exchanges outside of India. ...” ~ More details:  What Are International Mutual Funds, Its Types & Advantages | ET Money 

• “Foreign investors who want to buy mutual funds and have U.S. addresses, many fund companies will require only that the investor also supply IRS Form W-8BEN, which certifies the foreign status of the beneficial owner of the mutual fund account. ...” ~ More details:  Can Foreign Investors Buy U.S. Mutual Funds? | The MotleyFool 

Newbie Investors Should Explore Mutual Funds (Including Crypto Mutual Funds) https://t.co/CCbXCEzuMX

— cryptocurrency_nooze (@cryptoCCnooze) February 12, 2023

Original source

Curated Content for Crypto Newbies: Cryptocurrency: Tokens vs Coins

New to cryptocurrency and trying to learn?  So am I.  

I started learning about cryptocurrency in 2017. My intro to crypto was unintentional.  I joined a forum that used a virtual currency and had a faucet.  That started me looking for other faucets.  I stumbled upon several free faucets.  What got me excited was that I could earn cryptocurrency for performing small tasks like participating in surveys and then trade them for cash (USD) with friends who like to buy crypto. This is truly peer-to-peer transactions.

Along the way I learned about tokens. It was accidental. I was searching for more ways to earn crypto coins and created an account on a platform that rewarded me in tokens. It turned out I had the option of converting the tokens into Cryptocurrency or Gift Cards. I opted for the crypto coins so I could keep trading them with my friends for fiat currency (USD).

Do you want to know the difference between crypto coins versus tokens?  Here is an excellent article published by crypto.com.

Crypto Tokens vs Coins — What’s the Difference?

In my mind, even though there is a slight difference between the two, I am very glad they both exist. So we now have cryptonomics and tokenomics. It's all good.  

Buy Cryptocurrency at an ATM Machine? Where??

I moved to Austin, Texas in 1998. It's the state's capital. So if you want to live in Texas, this is the best city. I always tell people that. But today I discovered a really good reason to tell people how great this city is. I just found out that there are ATM machines in Austin that handle cryptocurrency transactions. YES!!! This city is moving on up!! 

Buy Bitcoin Instantly With Cash. Also, Bitcoin Cash, Ethereum, Litecoin. (There may be other crypto coins, but I mentioned the crypto coins that I'm interest in.) ~ “Introducing the Bitcoin Depot® App! Download your one-stop solution for all things crypto.” ~ Google Play Apps: bit.ly/3mswLpL ~ Use the map to find ATM location nearest to you.

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