Experts Warn Investors on 10 Funds That Indirectly Expose Clients to Blockchain

post image

As blockchain and cyber assets are gaining momentum, still lots of people find it challenging to get exposed to them. However, financial firms have already understood that and currently are trying to bring people closer to these perspective investments. But there are risks for newbie investors, experts warn, especially, if they pile all the funds, they have into these phenomena.

It is Not The Time to Ignore Blockchain

Recently, Morningstar held an investment conference, at which the firm’s senior equity analyst Jim Sinegal said that DLT has the potential to destroy the current state of the financial world, which means that it can disrupt various kinds of economic activities. Also, he said:

“Ignoring blockchain today is like ignoring the internet 30 years ago.”

Interestingly, as there were both winners and losers at the dawn of the Internet development, there will be such when it comes to the blockchain.

“We’re going to see a lot of successes and failures, things that happen in 2018, 2019 that don’t necessarily reflect on the entire future of blockchain and decentralized technology,” Sinegal added.

At present, lots of common financial firms are brainstorming about how to integrate the access to blockchain technologies. Nevertheless, at the same time some investment experts remain cautious, CNBC reports.

Novel Investment Perspectives, But Suspicious Ones

As Morningstar’s senior analyst on alternative strategies Tayfun Icten has said, currently, there are nearly 10 funds which offer some exposer to DLT. Among them, there are mutual funds as well as exchange-traded ones.

The US SEC has not issued a permit to these funds to straightforwardly pile into such cyber assets as bitcoin, the analyst emphasized. Icten even hesitated whether to quote any of them or not, but he has made it clear by explaining that Morningstar has neither rated them nor covered.

The official representative of another fund research firm Lipper said it does not even trace funds which expose their clients to the blockchain.

As per Icten’s words, these firms on the whole pile money into tech trend which keep emerging, among which there also is DLT. However, they haven’t grown considerably regarding asset size yet, neither are they experimental at the core.

CNBC reports that apart from rising technologies, such funds also pile into major companies that deal with blockchain directly, including IBM and Overstock.com. The former is putting efforts in becoming a pacemaker when it comes to DLT, whereas the latter accepts merely BTC as a payment method.

But the issue is that people who invest in these funds (both directly and indirectly) might not indeed understand whether the firms are genuine DLT bets.

Indirect Investment: BTC-Based Futures

Despite anything, on the horizon, there has appeared at least one firm which would gladly experiment with this kind of investments – indirect investments. And it’s TD Ameritrade.

According to this firm’s chief market strategist JJ Kinahan, TD Ameritrade listed its own BTC-based futures almost instantly once American regulators gave the green light to a novel kind of forward contracts.

Kinahan, however, warned that bitcoin futures are not for everyone as they require an investor to buy an asset at a predetermined future price and date, and that might be risky.

Warning!

According to CNBC, lots of financial experts remain cautious and urge people to be so. The head of outlining at Creative Financial Concepts in New York David Mendels, in particular, said:

“The technology is very interesting and is very likely to have a dramatic impact on a host of different things. The problem with the funds is nobody really knows what’s going to work. It’s sort of like the early days of the internet. You might end up with Amazon, or you might end up with Pets.com.”

So the old maxim “never invest more than you can afford to lose” is still valid.

Image Source: Flickr

Ethereum Classic 51% Attacker Reportedly Returned $100,000 to Exchange
Cyber money exchange Gate.io has informed the general public about the return of previously stolen $100,000 worth Ethereum Classic units. According to the...
Opera Users Can Benefit From the Newly Added Crypto-Wallet
Opera browser is welcoming crypto-fans as it has newly exposed its desktop clients to the novel mobile cyber-money wallet. The Norwegian establishment which...
Reddit Co-Founder Alexis Ohanian Stands By His $20,000 Bitcoin Prediction
One of the Reddit founders and a constitutor of a venture capital firm Initialized Capital – Alexis Ohanian – confirmed he is standing by his bullish price...
Five Coins Rise Up Amid News Coinbase Might Add Them
An immense cyber money bourse in the US – Coinbase – might add five other digital coins to its platform. At the moment, the company is examining the potential...
South African Police Pursue An Alleged Crypto Fraud With 28,000 Investors
A subdivision of South African police says it has started an investigation concerning an alleged investment scam, in which more than 28,000 people have...
Coinbase Announces “New GDAX” Launch, Obtaining Paradex
This week one of the most popular cyber money trading venues Coinbase, headquartered in California, has stirred up the crypto-community moods with two shocking...
Former Chief Developers Of Alibaba And Baidu Launch A Blockchain Academy
Developers of the largest giant companies in China are creating an academy focused on blockchain technology. Its goal is to contribute to the development...
What Did Experts Say About Cryptocurrencies For 2018?
In the current year, crypto-currencies can show even more significant growth than in the previous year, and the capitalization of cryptology may exceed...
YouTube Ads Have Mined Cryptocurrency
The next case of mining using malware was detected on YouTube last week. Anonymous hackers managed to integrate into the commercials on YouTube a program...
Invest or Not: Hedge-Fund Manager And UBS Chairman Oppositely Advice on Bitcoin
Since the beginning of 2018, bitcoin has not shown any drastic changes in the price. Sure, there were some significant declines, like to $9,500 on January...
BTC Will Cost ‘$1 Million’ – Bitcoin Advocate Casares Tells PayPal CEO
In an interview with Dan Schulman, PayPal CEO, bitcoin’s early advocate Wences Casares said that this cryptocurrency’s price one day would surpass the...
Bitcoin Plunges to $12,800 As South Korea Schemes Trading Taboo
South Korean authorities keep curbing bitcoin trading. After banning the registration of novel virtual account services for crypto exchanges and demanding...
New Website Puts Altcoins in the Shoes of Bitcoin & Shows Their Real Price
There are lots of altcoins on the market, which not long ago were trading at less than $1 and recently have started surging up at an unprecedented rate....
HitBTC Implies Adamant Fees on Bitcoin Deposits
Clients of the Europe-based cryptocurrency exchange HitBTC, which was launched back in 2014, should brace for fees. On December 22, the company announced...
How Investors of Twitter Help Cryptocurrency to Succeed
According to the Coinmarketcap , the total market capitalization of all cryptocurrencies stands at nearly $530B. This is remarkable in comparison to $18B...