The world has just accepted Cryptocurrencies as a whole, this is a fact, with more than a trillion dollars of value tied to cryptocurrencies it is not a surprise that it is emerging as one of the biggest sectors. People are now accepting them. The biggest indication of this is the launch of Crypto ETFs on multiple stock exchanges across the world that has happened in the past two years. These ETFs are getting so much attention that are now being oversubscribed, people are investing a lot of money into them and that too is dominated by Gen Z.
ETFs are known as Exchange Traded Funds, These are an amalgamation of carefully curated stocks that are pooled together into one security like a Mutual Fund. Anyone who invests in the ETF is exposed to all the securities, if the securities go up they get into profit if they fall the loss is seen by the whole portfolio. But there is an upside to it as well, instead of betting on one security you are betting on multiple so if one goes down and the others go up you have essentially hedged your bet. ETFs are managed by companies who specialize in these things and carefully curate the best companies in the ETF to make sure that the risk gets hedged. In a crypto ETF the same things happen, a crypto ETF may be made up of the top 10 cryptocurrencies, or a basket of top 100 cryptocurrencies, this also helps in reducing risk as you are not exposed to just one crypto but a basket of cryptocurrencies.
ETFs have been a common investing tool for generation Z which tends to look for ease as they don’t have to research individual stocks and tend to focus on the basket. ETFs have exploded in popularity over the past few years and crypto ETFs have been in demand for a long time. Now that Crypto ETFs are coming Aufin Bank has an opportunity along with other banks to offer their customers a buy-in into the ETF at a lesser amount so that they can reap the benefit. The initial offering of ETFs is generally controlled by banks and banks can seriously help their customers out in this regard.
