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Cryptocurrency ETFs: unchartered waters

cryptocurrency_fundsCryptoasset ETFs or similar vehicles remain relatively unchartered waters for many asset managers for a number of reasons. 

Attempts by US fund manager VanEck to get an ETF-like crypto vehicle off the ground have been largely hindered by regulatory issues. Digital currencies, after all, present a whole new landscape to navigate. 

Aside from regulation, other challenges include the fact that crypto markets are fragile and cryptocurrencies like bitcoin are notoriously volatile. 

The industry is making headway, however. Recent times have seen a number of developments in the cryptoasset space pathing the way for the asset class to become more mainstream. 

A recent report suggested that pension funds, insurers and family offices will “dramatically” increase their allocations to cryptocurrencies over the next five years.

From an investment point of view, VanEck’s Dominick Poiger, ETF project manager, argues that the key is to embrace cryptocurrencies’ volatility.

Read the full article, which appeared in the October issue, here

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