Article Contributed by Joe Robert
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As cryptocurrencies become increasingly ubiquitous, it is difficult to go a day without hearing about their use in social media, sports, and even in the traditional finance space. Yet, despite their path to mainstream, many investors are still understandably cautious when considering them as an investment because they are volatile and highly speculative. Most people don’t realize that they’re likely to have crypto exposure even without noticing. Also, if you’re still unsure of investing in digital assets, there are ways to do so without actually buying them through exchanges.
Crypto.com Arena — a move showing that crypto came to stay
The exchange Crypto.com announced a few months ago that the Staples Center would be renamed to Crypto.com Arena for 20 years through an expensive deal worth about $700 million, which is one of the largest sums ever paid for naming rights on a sporting venue.
The name change symbolizes how mainstream crypto has gone so far and attracted many people who are not in crypto businesses into their space.
Gain crypto exposure without actually buying them
Even if you’re not interested in buying and holding actual cryptocurrencies, there are still ways to invest indirectly. And chances are you already have some exposure to a cryptocurrency and don’t even know. So if you want an indirect investment opportunity into crypto but aren’t ready to invest yet, here’s how.
Here are a few options you can consider for indirect exposure
- Crypto technology
- Crypto ETFs
- Trust Funds
Crypto technology
One way to get exposure to cryptocurrency without investing in it is by investing in companies involved with crypto-related technology such as blockchain, cross-border transactions, and mining.
There are several companies in this sector, such as Tesla (TSLA), PayPal (PYPL), and Square (SQ), which are mainly known by the average traditional investor and are not exclusively focused on crypto. On the other hand, there are companies such as Coinbase (COIN), Riot Blockchain (RIOT), and Hut 8 Mining (HUT), where their business model is crypto-related.
Rather than putting your money on certain stocks that have their intrinsic risks, there is also the possibility of diversifying your portfolios and investing in index funds or ETFs.
Crypto ETFs
Exchange-traded funds (ETF) operate as a mix of mutual funds and stocks since when you buy an ETF, you have a stake in the portfolio owned by the fund. This structure provides investors with equity ownership on securities that trade on various markets while still offering diversification through their holdings into different picks. They offer the ability to quickly get in and out of a position without necessarily having a crypto exchange account.
The leading Crypto ETFs currently available for you to invest in are BLOK, BLCN, LEGR, BITO, BTF, XBTF, BITS, GBTC, BITW, SPBC, BITQ.
Trust Funds
There is always the option of delegating your asset management trust funds. Crypto-themed trusts tie your portfolio to digital assets without direct ownership, so you can give your first try in this market without actively participating in it. Although these trusts require a minimum investment ranging from US$25,000 to US$100,000, your assets will be managed by experts in the sector with a proven track record.
As always: do your own due diligence
You have many options to expose your portfolio to cryptocurrency without actually purchasing coins. Still, it is crucial that you proceed with caution and use the same diligence as you would when any other speculative investment.
As with any investment you make, you should be willing to accept its risks, so do your own research and understand what’s at stake. If you don’t intend to follow the market but still want to be positioned in certain assets, the best alternative is to put your money into investment funds.
Article Contributed by Joe Robert
Follow him on Medium
At Robert Ventures, we are constantly monitoring the market, and we’re also in touch with the leading players in the sector.
Joe Robert is currently the Chief Executive Officer of Robert Ventures, with over 20 years of asset management experience. Since he has started Joe has created predictable double-digit returns for investors & Partners. Joe has invested in seed rounds with equity and tokens, along with a portfolio of Bitcoin, Ethereum, and other top cryptocurrencies.If you are an accredited investor and would like more information on our offerings, Please Contact Us.
