Australia, launching its first crypto-focused ETFs this week comes with great excitement. More so, Both ETFs has a record-breaking early trading numbers.
Notably, the latest Beta Shares’ ASX ‘CRYP’ ETF amasses in over $42 million within the first day.
Of course, It surpasses all previous launches on the exchange.
However, BetaShares CEO Alex Vynokur expresses caution towards the cryptocurrency industry.
Additionally, he also mentiones the asset class was a risky one to meddle with.
Then, Vynokur explains better,
“We would also like to stress the importance of diversification and as such,…”
“investments in digital assets should be considered as part of a broadly diversified portfolio.”
Notably, this is why the first BetaShares ETF aims on companies directly with the crypto industry. Instead of, the currencies themselves. However, the company expects to launch Australia’s first spot Bitcoin and Ethereum ETFs, immediately regulatory greenlights it.
Furthermore, Cosmos chief executive Dan Annan shows similar concerns. Then, urges investors to monitor the asset class with caution as it now has mainstream attention.
“You know, it definitely provides an outsize return asset class, but it does come with risks…”
“So each investor should really analyze where this asset sits in their portfolio…”
“It comes with high volatility, so from a portfolio construction perspective,..”
“it’s important they consider their tolerance of capital at risk.”
Lastly, The CEO further then adds how people willing to take on the risk and returns on digital assets investment are relatively high.
So, Annan notes.
“And I think there are a few products out there at the moment that mask as digital miners,..”
“but when you lift the hood, they’re holding companies like Tesla and PayPal…”
“It’s extremely important that [moving forward] investors lift the hood of the exposures they’re looking to own.”
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