Should You Buy the New Bitcoin ETFs? Consider These 2 Risks
According to every key benchmark, the new spot Bitcoin (CRYPTO: BTC) exchange-traded funds (ETFs) appear to be a remarkable success. In just the first few days, they attracted more than $1 billion in assets. Trading volume has been "insane," according to market participants. And even though Bitcoin actually fell 12% in the week after the introduction of these ETFs, investor appetite still appears to be very strong.
However, there are two Bitcoin ETF risks that you won't hear a lot of people talking about. And either could affect how well your investment performs over time.
The primary purpose of the new ETFs is to give you exposure to the performance of Bitcoin. If Bitcoin goes up by 10%, your ETF should go up by 10%. And if Bitcoin goes down by 10%, your ETF should go down by 10%. While it might be naive to expect an exact 1:1 match in price, the difference should be fairly negligible, right?
Source Fool.com
