Crypto Exposure Through Traditional Stocks
With many people still unsure of themselves for holding on to their own wallets and being responsible for their own funds and security the question comes up can these people who don't want that responsibility now partake in crypto and if so how?
Before 2022 that options simply really wasn't possible unless you wanted to use some sort of CEX (Centralized Exchange) in which many flocked to Coinbase in order to do so.
But has that changed? Can more people now get in on crypto then ever before and easier than ever before.
It would appear that is the case and in this article I'm going to go through those various methods of how to do so.
Stocks
I wanted to highlight stocks first and then blend that over into ETFs as crypto stocks did come first.
These crypto stocks were mining companies that build massive warehouses for Bitcoin and yes even Ethereum mining at the time. These powerhouses not only have mined millions worth in Ethereum and Bitcoin but many have also built their own power systems allow them to sell the power they produce as well. On top of these many with GPU rigs from back in the Ethereum mining days and held on now have massive powerhouses being rented out by AI.
Stocks such as CleanSpark ticker CLSK for example allows for every day people to invest into the mining infrastructure of crypto but also might open them up to AI and other crypto mining projects besides just bitcoin.
CleanSpark is estimated to be mining at 20Exahashes per second and is set to have a 24% increase to mining power putting it on target to 32 exahashes by end of year.
ETFs
Alright so now we know how every day people can quickly invest via stocks it also became possible to invest directly into Bitcoin and Ethereum through what are known as ETFs. Now it's important to note the ETFs come with fees.
ETFs have become a great and easy way to directly buy up crypto assets from things like you 401k and other tools that were normally out of the reach of most people until this year.
Will ETFs Expand
It's pretty clear that ETFs don't seem like they will expand outside of Bitcoin and Ethereum at least any time soon. There's simply no pressure by anyone or the powers that be to do so. This is because mainly all of their projects such as RWA's (Real World Assets) run on Ethereum.
The next question will be if those ETFs holding ethereum will go into some type of staking rewards and thus collect dividends on the ETF which personally I think would attract a lot more people to the Ethereum ETF if there was a 1.5% APR on it. It would also be another open point for major owners of these assets to generate even more fees and wealth for their company. Even just locking up a small percentage of those funds.
What could happen is what I've been seeing recently which are liquid staked Ethereum assets on Coinbase getting a higher APR compared to normal locking of ETF. This is because it would allow Coinbase to lock up more Ethereum while having the other benefits of massive amounts of liquidity they can tap into for sell orders.
All in all new vehicles of investment are happening and they are happening at a rather rapid rate. It will be important to stay ahead of these, understand them and produce risk free or low risk investments as much as possible.
Posted Using InLeo Alpha
This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.
100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @bhattg by upvoting this comment and support the community by voting the posts made by @indiaunited.
I really don't see the point of investing in cryptocurrencies if you aren't going to hold the private key, because self-custody is the primary reason crypto has value.
Otherwise you are just speculating on its price in fiat, which won't serve you long-term.