facebookIm curious for the crypto degen out there ever considered investing in Blockchain ETF and or Mining (Crypto) ETF - Seedly

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Daniel Chua

Digital Audio Visual Production (Nitec) at ITE

01 Nov 2021

Cryptocurrency

Im curious for the crypto degen out there ever considered investing in Blockchain ETF and or Mining (Crypto) ETF

Hi Seedly folks,

what do you think about investing in ETF like $BLOK $BKCH $DAPP

Where the hold Blockchain or Crypto mining listed company.

(Full disclosure : I hold ONE COIN Stock)

Discussion (7)

What are your thoughts?

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ETFs have cost. That is already deducted off the ETF price, but if you want exposure to crypto, ETF is not the way. Here's why:

ETF usually has mandates (requirements) to achieve diverversification. See BLOK's industry allocation. https://amplifyetfs.com/blok.html

You get exposure to companies that aren't directly correlated to crypto. Hence (using a poor example), if crypto goes up 10%, you will get <10% returns. Bitcoin goes up 50%, I doubt the ETFs will go up even 40% due to cost and rebalancing and di(worse)ification. Just my opinions.

I think mining companies are an OK bet; but that's an investment of the business model of that crypto mining company. ETH is moving to PoS, and so far only BTC is the only popular PoW out there. The rest are all similarly doing PoS. That would suggest that mining companies will only stick to BTC, and with the miner companies you've to take note of miner competition, their overhead costs, and all that (since you're investing into business rather than crypto).

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