New risks to investing in Bitcoin ETFs: Why investing in them won’t profit you much

New risks to investing in Bitcoin ETFs: Why investing in them won’t profit you much

Dubai: The high price of a single Bitcoin has often made the crypto investment beyond the reach of most investors worldwide. This is why there has been a lot of interest in finding alternative ways to invest in Bitcoin and reduce the risks that come with directly buying the top cryptocurrency. Bitcoin exchange-traded fund (ETF) is one such alternative. With it, investors can get exposure to cryptocurrencies without having to go through the trouble of setting up a wallet or dealing with erratic exchanges. But they are not without risks, flag industry experts. “By buying shares of a Bitcoin ETF, you can gain exposure to the price movements of Bitcoin, but investors looking to utilise ETFs to access cryptocurrencies are not necessarily getting what wanted,” explained Brian Deshell, a UAE-based cryptocurrency trader and analyst. “Investors should be convinced that by investing in a regulated product like a Bitcoin ETF, their money will be safe. However, it’s not proven to be effective as means to exponentially grow your money in the crypto market. Moreover, there has hardly been any progress in regulatory approvals.” It was in mid-2013 when the first approval was sought for a Bitcoin exchange-traded fund (ETF) in the