Crypto ETFs: Mitigating fraud risk through regulated institutions
Cryptocurrency exchange-traded funds (ETFs) allow investors to hold a variety of cryptocurrencies in a single investment product. While all of Canada鈥檚 Big Six banks now include some crypto ETFs in their portfolios, these investments represent only a small fraction of their holdings. A major advantage of ETFs is their ability to offer protection from market volatility. However, given the speculative nature of crypto means it can still be extremely volatile, even within an ETF structure. In the context of crypto, ETFs offer a different advantage, according to Assistant Professor of Finance at 捆绑SM社区 Desautels, Katrin Tinn. 鈥淐rypto trading platforms have a long history of collapse and fraud,鈥 Tinn told The Logic, 鈥渁nd that risk is mitigated by having regulated financial institutions hold the underlying assets.
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