Investors get the chance to make money on Ethereum’s price fluctuations without directly purchasing it.
The brokerage firm Constancy Brokerage Providers LLC, which is part of the ecosystem of the large US investment company Fidelity, has launched an exchange-traded Ethereum Index Fund. Investors get the opportunity to make money on Ethereum’s price fluctuations without directly purchasing it.
A new exchange-traded fund was launched on September 26 and has attracted $5 million in investor funds to date, with a minimum entry threshold of $50,000. Thus, such a fund is oriented both at individuals with a large investment capital and at institutional participants of the financial market. Meanwhile, after the end of March Ethereum . was rising to $3.4 thousand, now its price is $1.35 thousand.
Recall that according to the Fidelity survey, 52% of institutional investors participate in some form of cryptocurrency market transactions, either by investing directly or through instruments such as exchange-traded funds. At the same time, 54% of respondents reported being concerned about the high volatility of cryptocurrency prices, and 44% admitted that they lacked knowledge of cryptocurrency market fundamentals.
Another study by cryptocurrency trading platform Bitstamp found that 80% of institutional investors believe cryptocurrencies will eventually be more profitable from an investment standpoint than classic investment destinations. Bank of America reported this week that equity and bond markets will lose out to commodity futures and cash investments. Bank of America did not mention cryptocurrencies, but aired obvious frustration with the global market dynamics of the major classic securities markets – stocks and bonds.