ETFs are exchange-traded funds when it comes to cryptocurrencies. Although crypto is a developing asset class, there is potential for regulatory uncertainty and therefore its future market may be different. However yesterday I discussed ETFs in the context of Cryptocurrency in my post. If you want to know about this you can see it. However, owning shares in cryptocurrency ETFs has some advantages when accessing the crypto market. Let's discuss about its advantages.

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The advantages of ETFs

• One of the advantages of ETFs is that the instrument can be linked to a portfolio by investing in that portfolio. And through this the price performance of one or more cryptocurrencies can be tracked. It even works like other ETFs. As with crypto, these ETFs can be traded on regular stock exchanges. Investors can hold their coins or tokens in standard brokerage accounts.

• It is a tool that makes it possible to gain exposure to cryptocurrency prices without having to trade on a crypto exchange. And that doesn't require dealing with the costs and complexities of owning digital assets.

• It also has many other benefits such as providing exposure to crypto without direct ownership. Another advantage of not requiring ownership to provide exposure to crypto is that it allows crypto custody and avoids trading costs.

• We know that cryptocurrency matters are not that easy for us. It is very difficult for us to realize its scope and functionality in crypto. To be honest we are still unfamiliar with this networking technology. So the benefit in this case is, it makes our considerable learning much more manageable when we get into crypto by investing in a cryptocurrency ETF.

The Disadvantages of ETFs

• We discussed the advantage that ETFs help investors avoid some of the costs of owning digital currencies directly. Although it helps to lose some costs of owning digital currencies but frankly they have their own fees. And these are often actively managed. Crypto ETFs may have higher expense ratios than other ETFs.

• ETFs in crypto are very volatile. It becomes volatile due to the dramatic price swings of the crypto market. As we get used to the lower volatility of more common ETFs, crypto ETFs become very risky, which can be even more of a concern for us. .

• Although we get investment opportunity in crypto ETF but here investors do not actually own the digital assets. Despite the benefits of crypto ETFs, you will not have control or access to cryptocurrencies. Even the decentralization and anonymity associated with crypto does not apply to ETF shareholders. So it can be said that here the investors do not own the digital assets.