Crypto for Advisors:The hidden costs of holding your own bitcoin
In this news:
Key takeaways
- ETPs allow investors to gain bitcoin exposure while outsourcing custody and key management.
- Advisors should assess vehicle structure, custody arrangements, fees, and protocol event policies.
- The failure of the CLARITY Act alters the broader digital-asset regulatory environment.
They are not the same decision.
A professionally managed exchange-traded product can provide bitcoin market exposure while delegating custody, key management and protocol-event processes to specialists. The investor still faces bitcoin’s price volatility, which the wrapper does not change, but avoids taking on every operational task associated with direct ownership.
Evaluating bitcoin investment vehicles
An advisor’s job is to decide whether a 1%, 3% or any other allocation fits their client’s investment objectives. It is not to build a crypto-security operation around that allocation.
Of course, not all bitcoin investment vehicles are identical. Investors and their advisors should assess the structure, custody arrangements, fees and, crucially, the policy for forks and other protocol events. A product’s documentation should make clear who takes those decisions and how any proceeds are treated.
Bitcoin can be an investment. It does not need to become an operational hobby.
Dovile Silenskyte, director of digital assets research, WisdomTree
Regulatory outlook and legislation
Q: Does the failure of the CLARITY Act change your long-term outlook for bitcoin?
A: I don't think the failure of the CLARITY Act fundamentally changes the long-term investment thesis for bitcoin. Bitcoin's value proposition is not dependent on a U.S. market-structure bill becoming law. What does change is the regulatory environment surrounding the broader digital-asset industry.
Share the article:
Trending News & Crypto World
.png)
Latest Crypto News
Top Trending Cryptocurrencies on The Market
Current Price
$0.03176
Market Cap
$743.9M -10.26%
24h Volume
$16.0M
Supplies
100.0B / 100.0B
Current Price
$0.02725
Market Cap
$743.1M 3.12%
24h Volume
$9.9M
Supplies
100.0B / 100.0B
Current Price
$0.6979
Market Cap
$701.2M -3.68%
24h Volume
$86.9M
Supplies
2.0B / ∞
Current Price
$0.9983
Market Cap
$697.8M -0.01%
24h Volume
$1.9M
Supplies
699.0M / ∞
Current Price
$1.737
Market Cap
$693.9M 3.92%
24h Volume
$133.1M
Supplies
1.0B / 1.0B
Current Price
$52.374
Market Cap
$674.9M 3.05%
24h Volume
$50.1M
Supplies
12.9M / 18.9M
Current Price
$2.090
Market Cap
$663.9M -1.81%
24h Volume
$58.0M
Supplies
329.5M / 400.0M
Current Price
$0.03299
Market Cap
$658.0M -1.21%
24h Volume
$10.6M
Supplies
38.1B / ∞
Current Price
$1.864
Market Cap
$648.6M -6.07%
24h Volume
$6.1M
Supplies
2.1B / 2.1B
Current Price
$0.03851
Market Cap
$643.3M -0.74%
24h Volume
$21.0M
Supplies
24.0B / 24.0B
Current Price
$1.189
Market Cap
$638.7M 0.02%
24h Volume
-
Supplies
537.2M / ∞
Current Price
$0.7166
Market Cap
$633.3M -1.94%
24h Volume
$104.7M
Supplies
1.2B / 2.1B