BloombergNEW DELHI: Cryptocurrency investment is not something everyone can digest, given the volatility, uncertainty and legal problems. But, the rally in prices is sure to attract many of you.
Vested Finance, which facilitates investing in US stocks, said it has launched a pre-made portfolio of select stocks called Bitcoin Vest that comprises shares of companies that generate some or all of their revenue from cryptocurrencies.
The broker said Bitcoin Vest is constructed using equities of various publicly traded companies that have exposure to Bitcoin. This vest includes exposure to names like Coinbase, Robinhood, Square, Hut 8, Core Scientific, Marathon Digital Holdings, Bitfarms and Riot Blockchain, among others. Plus, it also has a small allocation to the ProShares Bitcoin Strategy ETF, a Bitcoin futures ETF.
The portfolio also has stocks that hold Bitcoin as part of their treasury reserves, for example Tesla.
Since investors will be buying stocks, and not cryptocurrencies, they will be taxed according to the laws on taxing gains on foreign stocks rather than the recently announced 30 per cent tax on profits made by crypto investors.
Beware that Bitcoin Vest is intended to track the price of BTC, it is a high risk investment portfolio that has high volatility.
From April 2021, the 1-year standard deviation of the daily return for Bitcoin Vest is 16 per cent. That’s 16 times higher than the S&P 500. That said, investors will be exposed to risks around the crypto-sphere, so it still may not be a suitable investment option for everyone.
Vested Finance, which facilitates investing in US stocks, said it has launched a pre-made portfolio of select stocks called Bitcoin Vest that comprises shares of companies that generate some or all of their revenue from cryptocurrencies.
The broker said Bitcoin Vest is constructed using equities of various publicly traded companies that have exposure to Bitcoin. This vest includes exposure to names like Coinbase, Robinhood, Square, Hut 8, Core Scientific, Marathon Digital Holdings, Bitfarms and Riot Blockchain, among others. Plus, it also has a small allocation to the ProShares Bitcoin Strategy ETF, a Bitcoin futures ETF.
The portfolio also has stocks that hold Bitcoin as part of their treasury reserves, for example Tesla.
Since investors will be buying stocks, and not cryptocurrencies, they will be taxed according to the laws on taxing gains on foreign stocks rather than the recently announced 30 per cent tax on profits made by crypto investors.
Beware that Bitcoin Vest is intended to track the price of BTC, it is a high risk investment portfolio that has high volatility.
From April 2021, the 1-year standard deviation of the daily return for Bitcoin Vest is 16 per cent. That’s 16 times higher than the S&P 500. That said, investors will be exposed to risks around the crypto-sphere, so it still may not be a suitable investment option for everyone.
Pick the best companies to invest
BECOME AN ETPRIME MEMBERRead More News on
(What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)
...moreDownload The Economic Times News App to get Daily Market Updates & Live Business News.
Pick the best stocks for yourself
Powered by