Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Coinbase keen to create cryptocurrency ETF

It was reported that Coinbase are in talks with the asset manager Blackrock to establish a cryptocurrency exchange traded fund (ETF).

Cryptocurrencies have been in the news a lot over the past 12 months, and many retail investors are keen to invest in these products. Given that they are non-traditional investments, more credibility is added to the industry when well established firms like Blackrock are associated with the instruments.  

Blackrock are a major player in the ETF industry and that sector is growing rapidly as ETFs are a straight forward and cost effective way to invest in a basket of products. ETFs which track the performance of well-known stock market indices like the FTSE 100 are extremely popular.

Coinbase in conjunction with Blackrock are seeking to launch cryptocurrency ETFs, and this could be a straight forward, secure and relatively cheap way to invest in the underlying digital currencies. They may offer several different ETFs, where one could track the performance of a single market like bitcoin, and another product could track a group of cryptocurrencies. Should the joint venture go ahead it could be a boon for the cryptocurrency industry as it would increase publicity, respectability, and funds to the sector.

It is worth noting that not every major finance house is keen to get involved in cryptocurrencies. Earlier this week, Goldman Sachs confirmed they are going to hold off on setting up a cryptocurrency trading desk as the regulatory situation remains unclear. This announcement sent bitcoin and ethereum lower as Goldman’s credibility was no longer connected to the cryptocurrency sector. Bitcoin has been in decline for months, and it is just over 6% above its 2018 low, while ethereum fell to a level not seen for nearly a year. 


Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

Before you go…

Try a demo of our Spread Betting or CFD trading accounts on our innovative platform. Free of charge and risk-free with virtual capital starting from €10,000.

cmc-mobile-trading-app