Invest in Crypto through ETN's?

Investing / Cryptocurrencies
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I have never owned crypto currencies so far. With the current correction (?) I’m thinking of putting a small percentage of my portfolio into crypto.

As I want to keep things simple (no new broker, no wallet, no crypto exchange, etc…), I think of using one of the new Crypto-ETN’s (this one for example: GB00BMTP1733, to diversify between some currencies). With 0,95% TER isn’t exactly low but seems acceptable.

What are your thoughts or experience in this regard? Do you have any particular recommendation?

Thanks a lot in advance,
larix.aurea

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its really easy to just buy “spot” crypto so that you dont need to pay any TER or fees. You might want to look into that.

Also even if we had a 40% correction it totally possible to go another 50% or more lower, be prepared for that.

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The whole point of crypto is self-custody.
Not your keys, not your crypto.
By buying financial products like that you are adding another layer of fees and risks.

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You can mitigate some risks, like on coinbase there is a vault function, where you cannot whitraw unless you give permission and there still is a delay.

But in case of your death or if you lose your keys you still could recover your funds (or your family could) if thats is your point.

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Isn’t the main usecase of crypto to get rich? Most people don’t have the ability to do proper key management with disaster recovery plans (and succession planning), having just the exposure and someone else do the custody will still get you rich without the risk of losing access.

Just make sure to do your homework on your custodian and whether they do funny lending or similar :slight_smile:

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Easy to buy, “hard” to keep safe over long term. One could also see the TER as insurance or service.

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Thanks for your feedback. Overall, mixed opinions about investing in crypto through ETN’s (as always :slight_smile: )

I don’t know, I might give it a try if there’s another significant pullback in the coming weeks.

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A recent example of trying to do DIY with crypto: https://old.reddit.com/r/ethereum/comments/sfz4kw/did_i_just_lose_half_a_million_dollars_by_sending/

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I’m tempted to try MEGA (WisdomTree Crypto Mega Cap Equal Weight; GB00BMTP1733). It’s still very new and small, invests in a 50:50 basket of ETH and BTC and has a TER of 0,95%. It’s also traded in CHF at SIX.

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ABTC and AETH by 21Shares are also an option (in CHF too)

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Did not go into crypto in February 2022 and I’m really glad about it

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