Bitcoin is undoubtedly the most volatile crypto asset in financial history. It’s incredible, the thought that bitcoin’s price was once at $0.003. 2017 was the peak of the digital currency markets and Bitcoin itself hit an all-time high of $19,783 for a single unit. What a time it was for bitcoin holders.
The good times were short-lived. The frenzy didn’t last long and soon enough, the prices started dropping. For the better part of 2018, bitcoin and crypto prices were on a freefall. Data from CBOE global markets recorded a 31.5% volatility in the last quarter of 2018. And that’s only in bitcoin prices.
Besides dealing with the plummeting prices, investors also had to deal with the risk that cryptocurrencies were turning out to be. 2018 wasn’t the best year for cryptocurrencies at all. Everything that could have gone wrong went wrong, and cryptos were at the center of controversies. From the already falling prices to cyber-attacks on crypto exchanges, ICO controversies, and market manipulation. Cryptocurrencies were on SEC’s watch list and every now and then, crypto ads were being banned on popular media sites.
As bad as it was, selling bitcoin wasn’t an option. Those who sold incurred heavy losses. Holding on digital assets was the only option and it wasn’t for the faint-hearted.
Exchange Traded Funds (ETF)
Did traders have to watch their investments shrink time and time again? They didn’t have to. As we now know, there are ways for investors to get exposed to the industry without directly buying crypto. The Exchange Traded Funds (ETF) is one such tool for holding blockchain related stocks.
The Evolve blockchain ETF was listed in the Toronto stock exchange in March 2018. Today, it manages close to a billion dollars across its 31 holdings worldwide. Evolve’s underlying asset include Hive Blockchain Technology, a Canadian mining startup and NVidia, an American graphics firm.
Evolve Portfolio And Investments
Overstock.com is Evolve’s largest holding. Overstock’s CEO famously ditched e-commerce for blockchain technology and its services during the crypto boom of 2017. Its tZERO crypto launched in January and is already recording loses, although its management is confident that the platform will grow.
The diversification of Evolve’s portfolio and the investment into a number of blue-chip companies and technologies is what makes ETF more stable substantially than cryptocurrencies like bitcoin. Statistically speaking, last year bitcoin prices tumbled by 55%, Evolve’s unit only fell by 35.8%.
Evolves management fee may be 0.75% higher than other ETFs. However, the fee is justified by the active management of the Evolve platform and the unpredictable nature of the industry.
ETF unit market price is close to being at par with its net asset value of $11.64. Now, while the crypto industry is expected to reach $60 billion in 2024, net asset value does not fully rely on crypto growth. Amazon and MasterCard’s stock price is driven by factors beyond technology.
Bottom Line
All you need to do is open your eyes and see a hidden migration to blockchain related technology. Forget the hype and consider the fact that technology giant companies are assigning resources to blockchain related technologies.
If you are an investor and are looking to get involved in ETF, consider Evolve. Its portfolio speaks for itself and provides a more stable alternative than investing in crypto and ICOs.