Each era has its own follies and such assets, which often offered the mass of people something new and tentatively promising, although in reality this offer remains the good old great opportunity to lose money. Photo: DADO RUVIC
The risk is that small ordinary investors will buy the advertised funds of the next hot asset, briskly walking into the market, at the most expensive price possible.
US regulators have just given the green light to an exchange-traded fund tracking Bitcoin price movements (ETF) for trade. This means that such Bitcoin products will be significantly more accessible to the ordinary investor – sooner or later also in Europe and Latvia.
Often, when looking at financial page news, with the following ETF high expectations related to trade. However, it would be crucial for the average investor to remember that these are inherently very risky instruments through which most will likely end up losing money.
At least at the end of 2022 Barron’s highlighted information from the Bank for International Settlements that about three-quarters of people who bought Bitcoin in 95 countries between 2015 and 2022 lost money. This happened despite the fact that, in terms of virtual currencies, during this period, some dazzling price records were often remembered (and in the news headlines). Basically, it is a very speculative field, which of course can allow someone to earn from others and it can be argued whether it is considered an investment at all. But then the investor should also be clearly aware that this is speculation.
From this also comes the very gray Bitcoin ETF half. For these ETF as it becomes more accessible, the world of speculation will be brought closer to more and more people who would otherwise be more sheltered from it. On the other hand, every era has its own tricks and such assets, which have often offered the mass of people something new and tentatively promising, although in reality this offer remains the good old great opportunity to lose money. Hence some even longer resistance for Bitcoin ETF would also be strange. If it is marketed, then it is better to do it through “normal” products and not somewhere on the side under the counter. The hope may be that this pulls this whole market towards the light.
What is clear is that the biggest beneficiaries of the launch of such funds in the wider society will be intermediaries, who will be guaranteed to be able to collect their commissions. Basically, the most important thing for Wall Street is that people trade and they do it very actively. On the other hand, they mostly tend to trade in the new, hot and trendy things that promise endless profits.
2024-01-19 08:20:24
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