Crypto ETFs: The Revolution is Coming

Exchange-traded funds are the world’s most popular financial product. Fifty percent of all investors hold some. But what makes them so popular? What are the advantages compared to single asset investing? And how could ETFs in crypto improve your portfolio? This article will dive into the advantages of ETF investing in the traditional AND digital asset arenas.

What are ETFs and their advantages?

An exchange-traded fund (ETF) is a fund whose shares are tradable on an exchange, like a stock. ETFs typically contain a basket of underlying assets and offer investors distinctive advantages, including:

  • Diversification.
    Purchasing shares in an ETF gives instant exposure to multiple assets, spreading risk and simplifying the creation of a diversified portfolio.

How will ETFs improve the crypto landscape?

It’s no secret that crypto trading is not for the faint hearted. High volatility and lack of regulation has created a “wild west” investment landscape. Crypto ETFs help mitigate risk exposure and provide a professional and diversified investment vehicle for every crypto investor. Reducing these specific risks (that are arguably the main blockers to mass adoption) will help foster a more inviting environment for traditional investors, and help push the inevitable widespread onboarding into a digital asset economy.

Yield staking, farming and lending are all major earners in DeFi. A crypto ETF’s underlying assets can be employed in DeFi strategies to generate additional revenue for the fund. This revenue can either be fed back into the ETF, or paid as dividends to its shareholders, or both.

Catch the latest buzz around the development of Alvara’s HiveX and the creation of their unique SmartFunds using the links below:

Telegram | Twitter

About Alvara

Alvara is a crypto ETF creation, trading and management protocol that is bringing the world’s most popular investment vehicle to blockchain. Alvara’s hybrid exchange, the HiveX, provides a framework for users to build, manage and trade crypto ETFs. Through NFT integration, fund managers earn a share of the transaction fees each time their fund is traded, and have the option of charging a management fee based on AUM.

Alvara is focused on facilitating mass adoption and accelerating the decentralization of the global economy through the delivery of a product that all investors can buzz with.

Welcome to Alvara. Welcome to the Hive.

Website | Telegram | Twitter | Whitepaper

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store