Mining the Bitcoin ETF Buzz

Industry pundits are buzzing about the recent launch of spot Bitcoin ETFs. Before adding the cryptocurrency to their portfolios, investors should ask themselves: “Why would I expect a positive return?”

Stocks entitle you to a portion of a company’s future profts. Bonds provide interest payments and return of capital upon maturity. These can be sound reasons to expect a positive return. But Bitcoin offers neither. For an investor to expect a positive return from merely holding Bitcoin, the investor must hope someone will be willing to pay them more for the coins in the future than what they paid.

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Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women, and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small-business owners. Our disclosure can be found here. The views, opinion, information, and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.