Early stage investment platforms essentially require the broad longterm approach to assessing value known as fundamental analysis which we discuss in detail in our section on trading crypto.
They represent another step along the maturity path of crypto investing, which began with the mania of ICOs. Getting exposure to crypto outside of simply hodling or trading crypto is still relatively difficult. Many traditional investors don’t want to get their hands dirty in this way, and would prefer to call their financial advisor or broker and ask them to find a fund or index to give indirect exposure.
Right now there are limited opportunities to do that. Grayscale have been the trailblazer selling GBTC – the Grayscale Bitcoin Trust – which gives investors exposure to bitcoin price movement without owning it, but you need to be an accredited investor.
The big turning point for crypto investing is likely to come from the approval of a US Exchange Traded Fund (ETF) which will enable a huge number of regular investors to get easy access to a fund that simply tracks Bitcoin or a crypto index. The SEC has rejected all ETF applications to date, but there are at least eight new submissions (at the time of writing) and Canada recently approved their first adding pressure on their neighbour, so watch this watch.
Should a Bitcoin ETF be approved, it would signal a major milestone in the evolution of the ways which you can earn crypto, putting it within the reach of pension funds and conservative investment houses, a far cry from that first Ethereum ICO.
Leave a Reply