2024-07-04 03:16:25 ET
Summary
- VanEck Bitcoin Trust ETF offers retail investors a way to add Bitcoin to tax-exempt retirement accounts, broadening the investor pool.
- Approval of Bitcoin ETFs led to inflows, but benefits like uncorrelated returns have diminished due to institutionalization.
- Comparing the HODL ETF to the IBIT ETF, IBIT has lower expense ratio, higher AUM, and liquidity, making it a more appealing investment option.
VanEck Bitcoin Trust ETF ( HODL ) is a passive portfolio strategy meant to track the price of Bitcoin (BTC-USD). The portfolio offers retail investors the ability to add BTC holdings to their tax-exempt retirement accounts, which, I believe, has broadened the investor pool for the once decentralized currency. Given the dynamic shift in traders for the cryptocurrency, many of the investment benefits, such as uncorrelated returns, have diminished as a result of by whom and how the assets are held. Given that I am not a BTC trader and view this investment strategy more as an asset allocation, I cannot recommend a price target for trading purposes....
Read the full article on Seeking Alpha
For further details see:
VanEck Bitcoin Trust ETF May Not Be The Optimal Bitcoin Fund To 'HODL'