The rapid growth of the cryptocurrency ETF market has successfully bridged the gap between traditional finance and digital assets. By April 2026, the advancement of the CLARITY Act has signaled a near-certain legal framework for these investment vehicles, positioning them as a staple in retirement accounts and institutional portfolios. However, the convenience of a brokerage-wrapped asset comes with specific financial and structural trade-offs that are often overlooked during periods of market enthusiasm.

While these products offer a simplified entry point, they introduce a layer of intermediation that carries its own set of burdens. Investors are essentially paying for a service, custody, compliance, and reporting, and that…