As volumes for spot bitcoin ETFs soared last year, the number of financial advisors adding crypto to client portfolios doubled, according to a survey released on Thursday. Bitwise Asset Management, which conducted the survey alongside analytics firm VettaFi, said the number of financial advisors allocating crypto to their clients rose to 22% in 2024, up from 11% the previous year. The survey also stated that 96% of the participating advisors said they had a client ask about crypto last year…..Continue reading…
By: RT Watson
Source: The Block
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According to SEC filings, Cboe Exchange received approval to offer options on the Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF (ARKB). The fund’s holdings consist primarily of Bitcoin, with 99% of its portfolio allocated to the cryptocurrency. This achievement reflects strong user demand and is a testament to the growing interest in regulated and transparent financial vehicles for gaining exposure to bitcoin.
The iShares Bitcoin Trust ETF is not an investment company registered under the Investment Company Act of 1940, and therefore is not subject to the same regulatory requirements as mutual funds or ETFs registered under the Investment Company Act of 1940. BITI, the first short bitcoin ETF, offers investors the potential to profit on days when bitcoin drops. Spot bitcoin ETFs are a new class of investments that allows investors to invest in bitcoin at their convenience with far less risk.
They are available through retirement accounts, and on automated investing platforms (robo-advisors), and online brokerages during open market hours, but not on crypto exchanges. a 3x Bitcoin ETF does not currently exist, but one may be introduced in the future. A 3x Bitcoin ETF would aim to triple the performance of the Bitcoin index or benchmark it tracks. However, leveraged ETFs are risky investments, and 3x ETFs are especially risky because they use more leverage to achieve higher returns.
GBTC is the oldest fund, with bitcoin investments that converted to an ETF when the U.S. Securities and Exchange Commission allowed spot bitcoin ETFs earlier this year. At that time, GBTC’s assets surpassed $24 billion. BlackRock’s spot bitcoin ETF has become one of the fastest-growing ETFs of all time since its January debut, ending a decade-long campaign to bring a fully-fledged bitcoin spot ETF to market.
Who owns the most Bitcoin in the world? The top Bitcoin holder is still believed to be Satoshi Nakamoto, the anonymous creator of Bitcoin, who reportedly holds around 1.1 million BTC across many wallets. Despite this large holding, the top 15 holders collectively only possess about 7.5% of the total Bitcoin supply. IBIT is preferable for those seeking an ETF structure with competitive fees and direct exposure to Bitcoin, while GBTC suits investors seeking exposure to Bitcoin’s price movements despite potentially higher fees and the risk of trading at premiums or discounts.
spot Bitcoin ETFs do not pay dividends, as Bitcoins do not generate any income. The investment value of spot Bitcoin ETFs is derived mainly from the appreciation (or depreciation) in the price of Bitcoins. The List of Bitcoin ETFs & Their Outlooks Now that we’ve finally hit the finish line, it’s time to take a look at each of the bitcoin ETFs that’s been approved and their prospects for the future. There are 11 in total.
Largest shareholders include Millennium Management Llc, Capula Management Ltd, Goldman Sachs Group Inc, Jane Street Group, Llc, Aristeia Capital Llc, Morgan Stanley, Avenir Tech Ltd, Schonfeld Strategic Advisors LLC, Sculptor Capital LP, and State Of Wisconsin Investment Board . The fund is non-diversified. Low commission rates start at $0 for U.S. listed stocks & ETFs*. Margin loan rates from 5.83% to 6.83%. Commission-free trading on stocks & ETFs.
Spot Bitcoin ETFs are financial instruments that track Bitcoin’s price by holding the actual cryptocurrency in reserve and backing each share of the ETF with real Bitcoin. These ETFs provide investors with direct exposure to Bitcoin’s price movements without the need to buy, store, or manage Bitcoin themselves. There were already crypto-related ETFs and trusts out there, but there had never been a spot Bitcoin ETF on the market before the Jan. 2024 approval. These recently approved ETFs are the first cryptocurrency funds to trade on a major exchange and hold Bitcoin directly.
Subjective financial literacy is more of the self-perception of individuals about their financial literacy. Luradi and Mitchell (2014) identified that people rate their subjective financial literacy higher than objective financial literacy because of their behavioral biases when judging their financial knowledge subjectively. People often misestimate their financial knowledge.
Some financial literacy researchers have raised questions about the political character of financial literacy education, arguing that it justifies the shifting of greater financial risk (e.g. tuition fees, pensions, health care costs, etc.) to individuals from corporations and governments. Many of these researchers argue for a financial literacy education that is more critically oriented and broader in focus:
An education that helps individuals better understand systemic injustice and social exclusion, rather than one that understands financial failure as an individual problem and the character of financial risk as apolitical. Many researchers work within social justice, critical pedagogy, feminist and critical race theory paradigms.
The Journal of Financial Literacy and Wellbeing, published by Cambridge University Press, is a open-access academic journal established in April 2023. It publishes rigorous research on financial literacy and financial well-being. It aims to inform public policies as public, private and civil society strategies and activities, with the ultimate objective of improving the financial literacy, resilience, and well-being of individuals and micro and small entrepreneurs.
This journal covers the topics including financial knowledge, financial attitudes and skills. This journal also includes research on related fields like financial well being. Accounting literacy refers to the ability to read and analyse financial statements of the company or individuals and understand the impact of financial decisions, This can be helpful for the investors, managers and individuals.
Accounting literacy can be combined with financial planning, tax planning and understanding the financial health of the company. Academic researchers have explored the relationship between financial literacy and accounting literacy. Roman L. Weil defines financial literacy as “the ability to understand the important accounting judgments management makes, why management makes them, and how management can use those judgments to manipulate financial statements”.
The 1999 Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees recommended that publicly traded companies have at least three members with “a certain basic ‘financial literacy’. Such ‘literacy’ signifies the ability to read and understand fundamental financial statements, including a company’s balance sheet, income statement and cash flow statement.”
Digital financial literacy is all about the combination of Fintech and financial literacy. Digital Financial Literacy (DFL) combines objective financial literacy with the skills and ability of individuals to use digital devices to make financial decisions. There is a need for digital financial literacy across all consumers because of increasing fraud victimization due to digitalization, which prone individuals to misinformed financial decisions.
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