Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • Mutual fund AUM rises to ₹76 lakh crore in September on equity, Gold ETF inflows: ICRA Analytics
    • A ‘digital’ dhanteras : The growing popularity of gold mutual funds, gold ETFs and silver ETFs this festive season
    • Hong Kong open to issuing Islamic bonds to fund Northern Metropolis: Paul Chan
    • Best midcap funds to invest in 2025: THESE 5 funds have delivered up to 22% returns in just 6 months – Money News
    • Sheffield Wednesday: Two potential buyers for the Owls emerge after £50m in proof of funds shown to administrators | Football News
    • SEBI’s new fee norms aim to make mutual funds fairer, says Mohit Gang | Q&A
    • Bitcoin ETFs Face $470M Outflow as BTC Dips to $108K
    • Decoding SEBI’s latest recommendations- The Week
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»ETFs»Should You Invest In Spot Ether ETFs? Here’s What Experts Say
    ETFs

    Should You Invest In Spot Ether ETFs? Here’s What Experts Say

    July 27, 2024


    Key Takeaways

    • Individual investors can now buy and trade spot ETFs alongside other securities in their brokerage account.
    • Ether and bitcoin are, on average, six and eight times more volatile than a 60/40 portfolio, according to a Morningstar analysis.
    • Allocating 5% or more of your portfolio to crypto can make it significantly more volatile.

    You can now invest in ether (ETH), the native token of the Ethereum blockchain, by putting money into one of the nine spot ether exchange traded funds that began trading Tuesday. But should you?

    These ETFs have made getting a slice of the second-largest cryptocurrency by market capitalization easier via a brokerage account, just like you would do for other stocks and ETFs.

    “Most investors are accustomed to holding securities in their brokerage accounts, and they’re unfamiliar with holding digital assets in digital wallets. By having a Bitcoin or Ethereum ETF, they can invest in these assets in a more familiar way,” said Douglas Boneparth, CFP and founder of Bone Fide Wealth.

    Fidelity and Charles Schwab are among brokers that offer these products, and investors should check with their brokers to see if they have the option.

    Despite attracting more than $100 million in inflows on their first day, ether ETFs have not really captured investor interest just yet. That’s in stark contrast to massive inflows seen by spot Bitcoin ETFs that began trading in January.

    When Investing In Crypto ETFs, Prepare For Volatility

    If you’re considering investing in crypto, be prepared for a rollercoaster ride, experts say.

    “These are funds that don’t have significant track records. There’s a lot of volatility, and people really need to get used to what these types of funds are doing in the marketplace,” said Megan Gorman, a managing partner at Chequers Financial Management.

    Although cryptocurrencies such as bitcoin (BTC) and ether have the potential to offer greater returns than a conventional 60/40 equity and fixed-income portfolio, it also comes with much greater risks.

    “These are cryptocurrencies that have had incredible returns over their respective lives, and that’s also come with a lot of volatility,” says Stephen Margaria, a manager research analyst at Morningstar. “In the five year period that we looked, Ether and Bitcoin were, on average, eight [and] six times more volatile.”

    Even allocating a small percentage of your portfolio towards crypto can significantly increase volatility. An analysis done by Morningstar found that if an investor allocated just 5% or more of their portfolio to ether, bitcoin, or a combination of both, it would increase volatility by more than 10% over a 60/40 portfolio. Investing in only ether, could make your portfolio more volatile.

    “If investors want to further diversify their portfolio into crypto, at 1% or 2%, you’re not looking at much of a change in the portfolio’s risk profile, but it’s really at 5% or over that investors should be aware of how that [risk] changes,” says Margaria.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    A ‘digital’ dhanteras : The growing popularity of gold mutual funds, gold ETFs and silver ETFs this festive season

    October 30, 2025

    Bitcoin ETFs Face $470M Outflow as BTC Dips to $108K

    October 30, 2025

    ‘New generation of advisers will increase UK uptake of ETFs’

    October 30, 2025
    Leave A Reply Cancel Reply

    Top Posts

    The Shifting Landscape of Art Investment and the Rise of Accessibility: The London Art Exchange

    September 11, 2023

    Charlie Cobham: The Art Broker Extraordinaire Maximizing Returns for High Net Worth Clients

    February 12, 2024

    Mutual fund AUM rises to ₹76 lakh crore in September on equity, Gold ETF inflows: ICRA Analytics

    October 31, 2025

    The Unyielding Resilience of the Art Market: A Historical and Contemporary Perspective

    November 19, 2023
    Don't Miss
    Mutual Funds

    Mutual fund AUM rises to ₹76 lakh crore in September on equity, Gold ETF inflows: ICRA Analytics

    October 31, 2025

    India’s mutual fund industry posted marginal growth in assets under management (AUM) in September, despite…

    A ‘digital’ dhanteras : The growing popularity of gold mutual funds, gold ETFs and silver ETFs this festive season

    October 30, 2025

    Hong Kong open to issuing Islamic bonds to fund Northern Metropolis: Paul Chan

    October 30, 2025

    Best midcap funds to invest in 2025: THESE 5 funds have delivered up to 22% returns in just 6 months – Money News

    October 30, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    Fund management needs to make digital shift

    May 16, 2025

    Navigating offshore investments: Understanding your direct and indirect options

    May 6, 2025

    Penang’s Approved Manufacturing Investments Surge 150 Pct To RM12.5 Bln In First Half

    August 27, 2025
    Our Picks

    Mutual fund AUM rises to ₹76 lakh crore in September on equity, Gold ETF inflows: ICRA Analytics

    October 31, 2025

    A ‘digital’ dhanteras : The growing popularity of gold mutual funds, gold ETFs and silver ETFs this festive season

    October 30, 2025

    Hong Kong open to issuing Islamic bonds to fund Northern Metropolis: Paul Chan

    October 30, 2025
    Most Popular

    🔥Juve target Chukwuemeka, Inter raise funds, Elmas bid in play 🤑

    August 20, 2025

    💵 Libra responds after Flamengo takes legal action and ‘freezes’ funds

    September 26, 2025

    ₹10,000 monthly SIP in this mutual fund has grown to ₹1.52 crore in 22 years

    September 17, 2025
    © 2025 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.