VanEck Applies for Bitcoin Strategy Fund with the SEC, Diversification Needs Call Retail Investors
In a prospectus filed on June 21, VanEck—a U.S.-based investment firm—filed for a new Bitcoin Strategy Fund with the country's primary regulator, the Securities and Exchange Commission (SEC).
As per details, the fund will explicitly invest in Bitcoin Futures. They will also consider pooled investment products, including Exchange-traded Funds (ETF), without direct exposure to Bitcoin through its Cayman Islands-based subsidiary.
Cryptocurrency Yields Attract Billionaires and Established Public Companies
The application is a short in the arm for Bitcoin and cryptocurrency believers, including institutional grade investors, seeking to find exposure in the volatile but highly lucrative crypto assets. Bitcoin and cryptocurrencies are emerging asset classes, gaining traction in recent years, subsequently attracting quality investors and institutional support.
For instance, Elon Musk, the chairman of Tesla, the world's most valuable automaker, is vocal on cryptocurrency. Recently, he declared himself as the "Dogefather," subsequently moving the price of Dogecoin and inspiring the creation of other dogecoin-inspired meme coins.
Jack Dorsey, another billionaire and the founder of Twitter and Square, also supports the space. Other billionaires like Tudor Jones and institutions have been changing their stance on Bitcoin, pointing to the sphere's potential. Amid the current bear run, MicroStrategy, a NASDAQ-listed company, recently purchased $489 million more of BTC.
According to Bitcoin Treasuries, public companies worldwide, on behalf of their investors, hold around $52 billion of BTC. Since analysts are confident, expecting a turnaround from spot rates, the figure could exponentially rise as whales position themselves for more upside. Earlier on, the Winklevoss Twins predicted Bitcoin prices to reach $500k, citing the FED's "mismanagement of monetary policy."
Why Easy Crypto Diversification for Retail Investors is Critical
Diversification, especially in crypto circles, can be challenging for ordinary traders. There are over 10k cryptocurrencies to choose from, each offering a different value proposition that may or may not bode well with a portfolio's goal.
Sifting through all selection criteria like market capitalization, liquidity, exchange placement, maturity, technology in place, and much more can be overwhelming for a retail trader, often without the required tools or expertise. As a result, crypto investing becomes a loss-loss situation every day of the week despite the lucrative opportunities in emerging subsets of crypto like DeFi.
The creators of YDragon are introducing a new way for retail investors to instantly diversify by concurrently investing in multiple high-performing assets and yield farming protocols simply by owning a single token. YDragon is an interoperable protocol allowing retailers to diversify and generate passive income quickly. By adopting the traditional approach of investing and increasing efficiency using the blockchain smart contracts, YDragon is reshaping investment by doing what index funds did for fiat.
Their incorporation of smart contracting in a public chain means error-free execution and transparency. At the same time, the YDR token will be at the center of the platform's operations, especially in governance, in addition to being exposed to the performance of each and every index offered by YDragon. The YDR token is set for launch in mid-July 2021. Meanwhile, YDragon plans to release their first crypto index, the Top 5 BSC Reputable Projects index, comprising some of the Binance Smart Chain (BSC) best projects before branching out to other protocols in Polkadot, Avalanche, and Matic.
Crypto is Relatively Nascent and Potent
Amid the rapid fluctuation of crypto assets, the sphere is relatively nascent.
There are opportunities for shrewd investors. The savvy ones are constantly looking for diversification opportunities to improve their baselines.
A rising crypto tide would subsequently lift other altcoins—including DeFi token, providing an investment and portfolio diversification opportunity for traders.