New friends in the crypto world, today let's talk about a traditional yet trendy investment topic—the relationship between passive funds and Bitcoin. Don't worry, I'll try to explain it in simple and easy-to-understand language, so you can easily keep up with the pace!
First, we need to know what passive funds are. Imagine you have a super smart little assistant that is responsible for tracking and replicating the performance of a certain market index or sub-market, instead of trying to outperform them. This little assistant is the passive fund, which follows specific rules and methods to provide you with investment services. Just like you follow a fitness coach's plan for exercise, you just need to keep up with its rhythm!
SPY and VTI are the two star products of passive funds, they are like 'internet celebrities' in the investment world, attracting many followers. Maybe your financial expert friends or elders have suggested you buy these funds, but you might think they are too 'traditional' and not 'trendy' enough. However, don't rush to conclusions, let's continue to look.
Did you know? The stock god Warren Buffett once bet a hedge fund manager that the S&P 500 index would outperform the vast majority of actively managed funds. Guess what happened? Buffett won! Since then, passive funds have emerged like a dark horse, quickly rising to become the investment choice for many.
So, why are passive funds so popular? There are several reasons:
Low cost: Passive funds are like economy hotels, affordable and don't require you to spend a lot of money. Because they don't need fund managers to do a lot of 'active operations', their fees are relatively low. This way, you can get a higher net return, isn't it a great deal?
Easy to buy: Passive funds are like products in a supermarket, with a wide variety to choose from. You don't have to struggle to select which active funds are worth investing in because they are already prepared for you. Moreover, they integrate various distribution channels, such as 401(k), pension systems, etc., allowing you to buy at any time and place.
Stable performance: Passive funds are like the average student in the class, not particularly outstanding, but not too bad either. Most actively managed funds perform worse than the benchmark, while passive funds maintain stable performance. Although you might not get 10 times the return like early Tesla investors, most people wouldn’t bet their entire fortune on a single stock. Steady investment is the way to go!
Data speaks: In the United States, the assets of passive funds have quadrupled in the past decade! Now, their total managed assets have surpassed those of active funds. This data proves the popularity of passive funds.
Speaking of Bitcoin ETFs, what is their relationship with passive funds? Simply put, Bitcoin ETFs are like the 'upgraded version' of passive funds, combining the advantages of Bitcoin and passive investment. Although the development of cryptocurrency indices is relatively slow at the moment, Bitcoin ETFs have already begun to stand out. In the future, we might see more products based on other altcoins.
However, the real 'killer product' is the BTC hybrid product. Imagine a portfolio that includes both S&P 500 stocks and Bitcoin, or half gold and half Bitcoin. Such products can reassure financial advisors while expanding their distribution channels.
Next, let's talk about the company MSTR. As MSTR is included in the Nasdaq 100 index, passive funds will be forced to automatically buy MSTR's stocks. MSTR will then use these funds to purchase more Bitcoin. It's like an 'automatic Bitcoin buying machine', continuously injecting new buying power into the Bitcoin market.
Although it will take some time for MSTR to fully play the role of a 'Bitcoin vault company', with the implementation of new accounting rules and continuous market development, it may be included in the S&P 500 index. This will continuously increase the demand for Bitcoin purchases, and prices are expected to rise.
In summary, there are countless connections between passive funds and Bitcoin. They are like the 'best partners' in the investment world, creating more opportunities and returns for investors together. For newcomers in the crypto world, understanding these concepts and trends is very important! I hope you all can find your own investment path and realize your dream of wealth growth!
#BinanceLabs投资Usual
In the next layout direction, I will lead everyone to aim for the lucrative opportunities in altcoins, expecting a space of more than 10 times is not a problem. Like and comment, and I will take you to layout the entire bull market!