#ETFvsBTC There are many pros and cons regarding ETFs - here some of my 50 cents ...
For me, a direct investment into cryptos had something cool out of the first years of the web ...
- We own the assets and can do whatever we want to do with it... but depending on where we do it, we might be subject to heavy taxation, so pay attention.
- We do not have to pay neither provisions nor fees (*Amen*)
- we can be part of a DeFi platform (if we like)
But actually, there were always a few "but"s:
- we might be aware of security risks (see latest events ... 🤔) and need additional storage solutions (yes, you shall buy the stick.)
- Taxes. Did I mention taxes. And *very* *inconvenient* regulations. (Code word Winklevoss ...)
- and last but not least, it might be a hell of a volatility ride. Yes. Indeed. There is a meaning to "bull market" I don't know how you felt, but the HODL strategy has been hard between those 16K and 70K in the last 18 months ...
Therefore, the mighty, wise universe might direct us directly to ... ETFs? Well, obviously, there are some nice goodies owned by those novellish gimmicks ...
- they can be bought without any "crypto" knowledge needed ... so they say. (🤔 me personally like to know what I do... but well ...)
- Diversification is the next big thing. Access to more than one universe with one ETF, we buy.
- Security is handled by the institution emitting the ETFs, which lets you sleep easier in stormy times
- Which leads directly to the next big plus (if you think so) - regulation of the ETFs environment and simplified tax reporting (we like!) is a good thing
And there are the downsides after all:
ETFs need to be managed (see risk) - they need to be paid for. This can influence pricing heavily. There is no such thing as a free lunch, as my grandmother said.
You need to keep to the schedules of the stock market for an ETF. No 24/7 buy and sell - which might influence flexibility in a highly volatile market
The crypto is in the ETF - and you do not own it directly with an ETF.
And you - what do you think?