What are the Benefits of Investing in Crypto ETFs?

Updated
October 23, 2025
Gambar What are the Benefits of Investing in Crypto ETFs?

Jakarta, Pintu News – Crypto ETFs have become a bridge for investors to incorporate crypto assets into traditional brokerage accounts and tax-advantaged retirement accounts. With the potential long-term returns from crypto, this seems to be a win-win situation for all parties.

Crypto ETFs: Questionable Revenue Potential

While traditional assets offer great profit potential, the volatility of crypto is often too risky for some investors. ETFs that focus on crypto income, on paper, promise most of the gains from crypto with additional income over the investment period.

However, the reality can be much more complex. Using futures contracts, crypto ETFs buy assets at a time premium that decreases over time. In a bull market, the impact may not be as pronounced, but in a stagnant market or during a bearish period known as “crypto winter”, losses can be substantial.

Pros and Cons of Crypto Income ETFs

Crypto income ETFs offer a seemingly efficient way to enjoy the benefits of the crypto market while receiving income. This can be an attractive option for those seeking exposure to crypto with slightly more manageable risk. However, there are some important considerations to understand.

Read also: Standard Chartered Projections: Bitcoin Price Could Fall Below $100,000?

First, the ETF structure using futures contracts may result in asset value degradation during periods without significant price trends or during market downturns. Second, while these ETFs offer income, the volatility of the underlying asset-crypto-can reduce overall gains or even lead to losses.

Crypto Stock ETFs: Expectations and Realities

Recently, ETFs that track crypto-related stocks started to launch. These products offer another way for investors to gain exposure to the crypto industry without having to directly buy and hold coins. However, as with any investment, there are risks involved.

These ETFs, while attractive, remain affected by the volatility of the crypto market as a whole. For example, the so-called “massacre” on October 10 in the altcoin market is a stark reminder that these investments remain risky. Investors should do their due diligence before investing in crypto stock ETFs.

Conclusion

In assessing whether a crypto ETF is truly profitable, it is important to consider all aspects-from the structure of the product to changing market conditions. While they offer several advantages, such as ease of access and income potential, the risks associated with crypto volatility should not be overlooked.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

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