Why ETFs are a great way to get started in crypto: strategist

Ethereum (ETH-USD) is rising following speculation that the Securities and Exchange Commission (SEC) may approve ether ETFs. VettaFi Investment Strategist Cinthia Murphy Joins Wealth! to discuss cryptocurrency ETFs and what the latest news could signal for the sector.

Bitcoin spot ETFs were approved earlier this year, which Murphy said saw “strong demand.” This success fueled interest in other crypto ETFs: “It took about ten years for regulators to agree with spot bitcoin ETFs. And now, five months later, we are talking about spot ether ETFs,” the strategist adds.

She says those looking to get into cryptocurrencies should invest in spot ETFs and also sees gold ETFs as a “phenomenal” opportunity to diversify their portfolios.

For more expert insights and the latest market action, click here to watch this full episode of Wealth!

This article was written by Mélanie Riehl

Video transcription

If the rise this week after the Securities and Exchange Commission known in your neighborhood as SEC signals, they are ready to approve the ETF for the currency under certain criteria.

Now this comes as Bitcoin hits 71,000 on the back of increased ETF spot purchases as part of the ETF report presented by Invest QQQ who joined me.

Now we have Investment Strategist Cynthia Murphy checking out how the crypto ETF S could or should be your next play here.

All right.

So for those who are curious about how to play crypto in their ETF portfolio here, what are the main considerations that they should keep in mind, Cynthia, hey, Brad, you know, there’s a lot going on in this space and many things. we didn’t expect to take place in this space this week.

So, you know, if you’re a crypto enthusiast or you’re interested in the crypto space, obviously, 2024 has been the year of Spot Bitcoin ETF approvals, these products are here, they’re tried, tested and the demand has proven to be really robust, not only in the retail channels, but also in the institutional channel.

Which I think surprised a lot of us.

So if you want to get into crypto as an advisor or even as a retailer through an ETF, these spot products are available today.

There are also futures products that have been on the market for a few years now.

It’s all good, you know, and it’s done.

What is at stake here now is the potential arrival of the Ether ETF.

So the next level, the next wave of crypto products in ETF packaging and that’s what we’re, you know, watching.

Is it going to happen this week?

We thought it wouldn’t happen.

It all came so quickly that it took, you have to remember, it took about 10 years for the regulators to agree with the spot, Bitcoin ETF S and now, in five months, we’re talking about spot their ETF S but we are I’m looking this week, if these will be tools that will be approved for investors around the world.

The story continues

I immediately understand where, if we see massive inflows into crypto-specific ETFs, like we saw with Bitcoin or like we’re about to potentially see with Ether or Ethereum, or elsewhere in the ETF landscape should see maybe some There’s maybe more fanfare or attention for cryptocurrency touching the S ETF. You know, I like this question asked because it actually touches on something that has intrigued us all all year long, namely gold.

ETF S. So gold has been phenomenal, very, very well performing as an asset.

We keep reading about central banks around the world, buying gold like crazy, you know the sticky inflation story is always a proponent of space and you know, everyone is probably on gold for, for safety and yet we don’t see the demand showing up in the ETF S as much as one would expect given the performance.

And one of the conversations we’ve had is, is it because there are other options besides crypto?

So it’s kind of interesting that the search for alternatives in a portfolio, the diversification, you know, which is akin to risk management, you know, risks that we don’t typically see, has come to gold .

But now crypto is emerging as another attractive option, just like commodities.

But it’s been pretty fascinating to see, you know, where these flows end up going while we have you here, Cynthia’s copper is up over 27% this year.

I mean, there’s been a lot of noise around this and it’s really the precious metals and their counterparts, gold and silver that have also gone up this year.

Is this an area that investors should be paying more attention to now?

Yes, metals have been a great story this year and on the copper side, it’s the industrial metals story. I mean, copper is key to almost everything we’re trying to do, from the energy transition to industrial manufacturing, all sorts of things.

So copper is a really, really strong metal for the future, where we’re going in terms of energy production and all those things.

So it makes sense that it’s really strong.

But you have to remember, you know, things like industrial models like copper, they’re very dependent on economic growth.

So we need to continue to see, as you know, GDP growth and economic activity for industrial models to remain a strong player.

Cynthia Murphy, who is the verified investment strategist, Cynthia.

Happy to see you.

Thanks so much for jumping on us.

Thank you for.

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