The demand for cryptocurrency is always growing. Even though Bitcoin is facing a little bit of a problem right now with the crackdown that had been going down in China with the people getting paranoid and the value of Bitcoin once dipped below a lot too. But however, it soon recovered as well.
If you are planning to invest in Bitcoin Trusts then you have to be aware of stuff that has been going around in the world market. Especially what’s going around in the Bitcoin or cryptocurrency exchange market. If you do not understand then do not waste your money by investing blindly.
“You’re more or less buying a basket that has bitcoin inside of it,” said financial planner Zechariah Schaefer, founder of Ascent Personal Finance in Lynchburg, Virginia.
Bitcoin trusts will allow the investors to buy exposure to the digital currency. While bitcoin trusts may offer a simpler way to invest in cryptocurrency, there are downsides to consider
“The trusts are just an easy way for investors to get access to the underlying bitcoin without buying it directly,” said Tyrone Ross, CEO of Onramp Invest.
Currently, the most popular choice is the Grayscale Bitcoin Trust, with $21.7 billion assets under management. Osprey Bitcoin Trust released a competing option in February, managing nearly $91.2 million.
By comparison, Vanguard’s 500 Index Fund, tracking 500 of the country’s largest companies, has $231.84 billion in assets.
So if you are planning on investing in Bitcoin anyway then you should learn the trade. It is not that difficult, you just need to study the pattern and you will be set to go.