A new Bitcoin ETF from VanEck offers a way for retirement plans to include cryptocurrency, providing a regulated and fully collateralized product.
The old continent is the new frontier
The VBTC ETF tracks the MarketVector Bitcoin VWAP Close Index, which measures the performance of a digital asset portfolio directly invested in Bitcoin.
This ETF has a total expense ratio of 1% and gives French investors a regulated way to gain exposure to Bitcoin.
This is similar to the Bitcoin ETFs launched in the US in January after getting approval from the US Securities and Exchange Commission.
Martijn Rozemuller, CEO of VanEck Europe, expressed confidence in Bitcoin as a long-term innovative asset, but he also mentioned that the recent price volatility shows the usual value-seeking phase seen with new assets.
Everyone wants Bitcoin
In early July, Bitcoin dropped to a six-month low of $53,500 after failing to retest its all-time high of $73,500 between May and June, which led to a 25% price drop.
Since then, Bitcoin rebounded and now is trying to stay above $63,700.
Jean-Baptiste de Pascal, Deputy CEO of Inter Invest, talked about the company’s goal to make innovative financial assets, like the Bitcoin ETFs more accessible.
By adding crypto assets to their retirement savings plans, the company wants to meet the growing demand for combining retirement savings with investments in digital assets.
Safe bet
French pension plans now include Bitcoin ETFs, following the first crypto ETF listings on the London Stock Exchange in Q2, which allowed professional investors to access this asset class.
Despite some skepticism, like the European Central Bank calling the approval of spot Bitcoin ETFs the naked emperor’s new clothes, Bitcoin ETFs in the US continue to see success.
We aren’t surprised the ECB doesn’t like Bitcoin, because they can’t control it.
Recent data shows that US Bitcoin ETFs have seen significant net inflows, with a big net inflow of $301 million on Monday, which means we have seven consecutive days of net inflows.
ETFs from BlackRock’s IBIT, Ark Invest’s ARKB, and 21Shares’ ARKB each saw substantial inflows, with Bloomberg expert Eric Balchunas noting that Bitcoin ETFs already surpassed $16 billion year-to-date.
One can speculate that if this trend continues and it’s very likely it will, Bitcoin ETFs might become a common feature in retirement portfolios, helping to mainstream digital assets in long-term financial planning.
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