Bitwise is finally making headlines for its world-first exchange-traded fund (ETF) based entirely on top-performing cryptocurrencies.
The asset management firm first announced this publicly-offered ETF back in 2018. After a handful of missteps with the SEC, it finally made good on its promise in December 2020. Investors can now gain exposure to this asset class on the Swiss Stock Exchange.
This would be great news—if investing in an ETF based on 'top-performing' cryptocurrencies wasn’t such a terrible idea.
Let’s talk about ETFs first. ETFs are low-cost investments that hold a collection of other securities. Outside of the cryptocurrency world, they’re useful for increasing diversification and managing risk. You can trade them like stocks and compare their daily price change to the sector or commodity they index.
This makes sense when you’re dealing with something like, say, a bundle of biotech...