Currently the crypto world is being treated as the fringe asset that makes people money. Whereas some of the cities, business and nations are slowly adopting crypto as a means for decentralized currency to be transferred between the borders and places. Now there are some of the places where crypto is being accepted which would increase the overall adoption of the crypto and may even help gets integrated into various financial assets.
So when does crypto becomes more than any other asset or how does it become more serious than it is now for the market? Let's talk about it.
Bitcoin ETF's and Start of New Era
Bitcoin is being integrated in some of the funds for the minor level of exposure in the market. Though a lot of market have yet to completely treat the bitcoin as a legal tender which kind of restricts it from being an investment fund and ETF. Most of the funds that are out there are kind of yet to adopt the cryptos completely.
Polkadot, Bitcoin and Ethereum has managed to reach some of the EU markets and they are now being accepted in some of the ETFs. You can consider this a start of the new Era where you can find the crypto getting more everyday life acceptance. This also means that eventually the nations around the world would accept such cryptos for mutual funds and ETFs.
Crypto Equity, Index Funds and Debt Funds
Crypto can easily be integrated into the various funds that are out there. How good that would be for the world? I am not sure. Again I am not a financial advisor. I speculate things. And that's what I am doing here too. So I don't know if adding any specific coin would help or break the crypto blcokchains and the funds.
Index Funds are likely to benefit the most if cryptos are used in integration into such funds. And debt funds with stablecoin can also be a good choice, though you never know what it may do to the funds if the peg is damaged or whale movement does something. You never know because often some of the cryptos appear like some MLM scheme where one exits the market when the funds are poured into the same.
Mutual Funds Perform Long Term
Again this is a speculation considering the assets owned in the mutual fund pool seem to be making things stronger short term and long term. You may notice that mutual funds can do good with crypto shorter term and during market up. But it would turn any fund into volatile asset when it is dealt with crypto. So it becomes a bit more strong on the risk factor scale.
So if the fund managers and the people who have enough data for the top coins like Ethereum, Bitcoin they can use it within their existing funds. If correct tests are done it can create a good fund for the long term. For now we are far from any strong fund in the market, but you never know when this would happen and things would move so quickly as if we are not even aware this was not possible few years back.
My personal approach is investing into the assets like Mutual fund, Crypto and other assets which can over a period of time can stand the test of the time. I feel crypto can become even more serious if the other financial instrument use it in it's instrument and makes it more stable and strong over time.
What's your opinion on adding the crypto into the mutual funds and assets?