Risk-averse investing in cryptocurrency might sound like a contradiction in terms, but a tranche of US exchange trade fund providers have plans to let investors try to do just that.
A quartet of asset managers have filed with US regulators to create ETFs that invest in bitcoin, but use derivatives to minimise or completely protect against potential losses.
“Given the meteoric rise in bitcoin this year, many investors are likely regretting they missed out because they were nervous about the volatility of the cryptocurrency,” said Todd Rosenbluth, head of research at TMX VettaFi, a consultancy. “These pending downside protection ETFs will allow more people to add bitcoin exposure to their portfolios in a risk-aware manner.”
The…
