The crypto industry has been around for over a decade, revolutionizing the way we think about money and investments. Recently, crypto-based ETFs have gained significant attention, particularly from traditional financial investors and institutions. In 2024, the approval and launch of Spot Bitcoin ETFs, followed closely by Spot Ethereum ETFs, marked significant milestones in integrating crypto with traditional financial markets.
Investors interested in the crypto industry now face an important decision: whether to engage with crypto through ETFs or to directly own real crypto assets. While Bitcoin ETFs have entered the scene, bridging the gap with traditional investments and enhancing Bitcoin’s appeal, directly owning real crypto continues to attract those seeking full control over their digital assets.
Let’s go over the unique difference between crypto ETFs and real crypto.
Crypto ETFs
Crypto ETFs, or crypto exchange-traded funds, are investment funds traded on stock exchanges, much like traditional ETFs. These funds hold crypto assets and aim to track the performance of a specific digital currency. This allows investors to gain exposure to the crypto market without needing to buy and manage the underlying assets directly.
The introduction of Spot Bitcoin ETFs has been a game-changer, connecting the realm of crypto assets with traditional financial markets. The growing presence of Bitcoin ETFs is anticipated to enhance Bitcoin’s liquidity, promoting a virtual cycle of investment and value growth.
Additionally, the approval of Ethereum ETFs reflects the expanding options within the crypto ETF market. These developments are likely to further integrate other crypto assets into the realm of traditional finance.
However, venturing into crypto ETFs isn’t without its hurdles:
- Fees: The fees linked to crypto ETFs might eat away at the overall profits from investments.
- Trading Hours: The constraint of trading only during stock market hours could slow down the ability to quickly adjust to sudden market shifts, possibly causing missed opportunities.
Real Crypto
Real crypto refers to the direct ownership of crypto assets, such as Bitcoin or Ethereum. Unlike crypto ETFs, which are investment funds traded on stock exchanges, real crypto involves buying real digital currencies. For example, you can take advantage of the tax benefits of buying and selling real crypto inside a retirement account like an IRA. This service is offered by crypto IRA platforms, such as iTrustCapital. This approach gives investors complete control over their assets and allows for direct interaction with the crypto market.
Owning real crypto also allows investors to trade around the clock, every day of the year, providing the flexibility to respond to market changes at any moment. This flexibility helps in fine-tuning investment strategies beyond the limits set by traditional trading hours.
Advantages of Direct Crypto Ownership
- Full Control: Owning real crypto means you have complete control over your assets, including how they are stored and secured.
- 24/7 Trading: Crypto markets operate 24/7, allowing for greater flexibility in trading and reacting to market movements.
The Power of Real Crypto
The phrase “access equals opportunity” is especially relevant when investing directly in crypto. Direct ownership not only provides investors with control over their assets but also enables them to adapt to market volatility as it occurs. With digital currencies increasingly transforming the financial landscape, investors face a significant decision: opt for crypto ETFs or choose the path of owning real crypto directly.
If you’re interested in buying and selling real crypto, iTrustCapital provides an effective way to invest by offering secure custody services and tax-advantaged accounts*. iTrustCapital’s software platform combines the flexibility and control of direct crypto ownership with the added benefits of security and potential tax savings, making it a compelling choice for investors. Click here to learn more about iTrustCapital and the power of crypto IRAs.
*Some taxes and conditions may apply.
This article is for information purposes only and is not intended to constitute investment advice in any way or constitute an offer to buy or sell any cryptocurrency or security or to participate in any investment strategy.
iTrustCapital is a cryptocurrency IRA software platform. It is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not associated with and has no direct relationship with Bitcoin or Ethereum. iTrustCapital is not affiliated with and does not endorse any particular cryptocurrency, precious metal, or investment strategy.
Cryptocurrencies are a speculative investment with risk of loss. Precious metals are a speculative investment with risk of loss. Cryptocurrency is not legal tender backed by the United States government, nor is it subject to Federal Deposit Insurance Corporation (“FDIC”) insurance or protections. Clients do not receive a choice of custody partner. The self-directed purchase and sale of cryptocurrency through a cryptocurrency IRA have not been endorsed by the IRS or any regulatory agency. Historical performance is no guarantee of future results.
Some taxes and conditions may apply depending on the type of IRA account. Investors assume the risk of all purchase and sale decisions. iTrustCapital makes no guarantee or representation regarding investors’ ability to profit from any transaction or the tax implications of any transaction. iTrustCapital does not provide legal, investment, or tax advice. Consult a qualified legal, investment, or tax professional.
iTrustCapital makes no representation or warranty as to the accuracy or completeness of this information and does not have any liability for any representations (expressed or implied) or omissions from the information contained herein. iTrustCapital disclaims any and all liability to any party for any direct, indirect, implied, punitive, special, incidental, or other consequential damages arising directly or indirectly from any use of this information, which is provided as is, without warranties.
