Bitcoin ETFs are available for trading now. Is this worth space in your portfolio?
Here's my take:
First let me make a distinction–these bitcoin ETFs are not just like any other stock or investment fund we can buy.
When we buy the stock of Target you get a legal right to benefit from future profits. Target has employees going to work everyday to stock shelves and sweep floors, all in an effort to get us to buy more products. When we do that company profits grow, store managers get paid more and store employees get bonuses. Up and down the chain of command the employees are incentivized to increase profits--this is how they grow.
This doesn’t happen for bitcoin.
Ask yourself: who wants the price of bitcoin to go up?
The only answer I have is CURRENT BITCOIN HOLDERS. If the only people who are encouraging you to buy something are the current owners of that thing then you really need to scrutinize that deal.
As for bitcoin ETFs–I really don’t hate them. If you’ve got FOMO on crypto then these offer an easier and cheaper option than buying bitcoin itself. I would never put more than a small percentage of my portfolio here because again, I don’t view them as investments, I view them more as gambles or portfolio hedges, but I can understand why some investors want a little exposure here and these bitcoin ETFs offer that.