Would You Invest Your Money in a Bitcoin ETF?

Some experts are of the opinion that crypto devotees set aside 5-10% of their portfolio to crypto assets. However, what about more risk-adverse investors like me who dare not invest so much on Bitcoin but suffer from the FOMO (Fear of Missing Out) syndrome? Since Canada has introduced a Bitcoin ETF on the Toronto stock exchange earlier this year and Cathie Wood's Ark Invest is intending to launch a Bitcoin ETF, will investing in a Bitcoin ETF be an exercise in moderation and allow me to reap the best from the dual worlds of reward and security?

Roboadvisors are a trending phenomenon in my country and many people, me included, turn to them as a means to engage in passive and low-cost index funding. So I actually asked this question in a forum frequented by die-hard fans of arguably the most well-known roboadvisor called StashAway: If StashAway were to ride on the current Bitcoin craze and re-optimise its portfolio(s) to include a Bitcoin ETF (Canada launched one this year. Think Brazil has BTC ETF too), how comfortable will you be?

The response was lukewarm, to say the least. Most users commented that it would be better for me to just buy my ETF. One user took the initiative to place the link to a market commentary done by the co-founder of StashAway. He answered my very question at the 4:00 mark; his response was super illuminating for me. 

The co-founder advised against retail investors putting their eggs into Bitcoin ETFs because they don't track the price of Bitcoin very well yet. So due to this high tracking error, the Bitcoin ETF actually trades at a premium against the underlying securities when the market is facing an upward trend. 

I posted this in case you wanted to invest in a Bitcoin ETF. This isn't financial advice because I'm not a certified finance professional, but I hope that my research helps you to make an informed decision, either way. 

Guess I will be working up my courage so that I feel emboldened to invest more in crypto assets!

If you enjoy reading this article, perhaps you will like to read "My Thoughts on the Promise of Bitcoin". The photo is by Alesia Kozik from Pexels.