How Does Crypto Fit Into a Passive Investment Strategy?
October 22nd, 2021

Until recently, there has been little that’s passive about cryptocurrency. From the get-go, buying bitcoin or alternative coins (altcoins) requires research – at least enough to open a digital wallet or app that lets your clients buy cryptocurrency, such as Robinhood, CashApp or Venmo.

Then there’s the market news, which changes every day. The U.S. Securities and Exchange Commission (SEC) has made significant strides in the conversation about regulating the $2 trillion asset class – including approving a bitcoin futures exchange-traded fund (ETF) to begin trading this week.

This article originally appeared in Crypto for Advisors, CoinDesk’s new weekly newsletter defining crypto, digital assets and the future of finance. Sign up here to receive it every Thursday.

But still, a futures-based ETF differs from a physically backed ETF and will likely benefit traders more than passive investors, Matt Hougan of Bitwise told CoinDesk’s Emily Parker last week. According to Hougan, the futures-based bitcoin ETF is part of the SEC’s “crawl, walk, run” approach to opening up the growing crypto market to everyday investors.

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