With the rapid growth of cryptocurrencies and high expectations for blockchain adoption in other capacities, investors are increasingly looking to gain exposure to digital assets. While bitcoin and ether grab most of the headlines, gaining access to this broader, emerging asset class often represents a challenge.
In this webinar, Sam Stovall, CFP, Aniket Ullal, Pedro Palandrani, and Rohan Reddy, CFA, explored the case for a “picks and shovels” strategy for investing in digital assets along with a combined approach involving bitcoin futures.
Chief Investment Strategist, CFRA
As Chief Investment Strategist, Sam Stovall serves as analyst, publisher, and communicator of CFRA’s outlooks for the economy, market, and sectors. He is the author of The Seven Rules of Wall Street and The S&P Guide to Sector Investing. He also writes weekly “Sector Watch” and “Investment Policy” reports on CFRA’s MarketScope Advisor platform, and maintains the Industry Momentum and Seasonal Rotation portfolios. His work is also found in CFRA’s flagship weekly newsletter The Outlook.
Head, ETF Data & Analytics, CFRA
Aniket Ullal heads CFRA’s Exchange Traded Fund (ETF) data and analytics business and has worked in the ETF industry since early in its development. He founded First Bridge, one of the industry’s leading ETF data sets that became acquired by CFRA in 2019. Previously, he was the product head for US index products at S&P Dow Jones Indices, which included responsibility for the widely tracked S&P 500 and S&P /Case-Shiller indices. In that role, he partnered with several global asset managers to successfully launch a wide range of index-linked ETFs. He is the author of ETF Investment Strategies (McGraw-Hill; 2013), a featured contributor for Nasdaq.com and his work is frequently cited in the financial press.
Director of Research, Global X ETFs
Pedro joined Global X in 2019 as a Research Analyst covering the Thematic Growth suite of ETFs, including those in the Technology, People, and Infrastructure categories. Prior to joining Global X, Pedro held the role of Equity Research Analyst at Cabot Wealth Management where he worked on the firm’s growth-oriented investment strategy, utilizing ETFs to construct multi-asset class portfolios. Pedro earned his MBA from the Bertolon School of Business at Salem State University.
Rohan Reddy, CFA
Director of Research, Global X ETFs
Rohan joined Global X in 2015. He works within the firm’s research team, providing insights into the financial markets and Global X’s unique range of ETFs, including Energy Infrastructure, Preferreds, Covered Calls, & Dividend strategies. Rohan is also a member of the firm’s Portfolio Construction Committee (PCC), providing model portfolio solutions to investors. He is a frequent contributor to the Global X blog. Rohan earned his BA in Economics from New York University.
Bitcoin and bitcoin futures are a relatively new asset class. They are subject to unique and substantial risks, and historically, have been subject to significant price volatility. The value of an investment in BITS could decline significantly and without warning, including to zero. You should be prepared to lose your entire investment.
Investing involves risk, including the possible loss of principal. BITS is actively managed and invests in bitcoin futures contracts. The ETF does not invest directly in or hold bitcoin. The price and performance of bitcoin futures should be expected to differ from the current “spot” price of bitcoin. These differences could be significant. Bitcoin futures are subject to margin requirements, collateral requirements and other limits that may prevent the ETF from achieving its objective. Margin requirements for futures and costs associated with rolling (buying and selling) futures may have a negative impact on the fund’s performance and its ability to achieve its investment objective.
Bitcoin is largely unregulated and bitcoin investments may be more susceptible to fraud and manipulation than more regulated investments. Bitcoin and bitcoin futures are subject to rapid price swings, including as a result of actions and statements by influencers and the media.
Narrowly focused investments typically exhibit higher volatility. Investments in blockchain companies may be subject to the following risks: the technology is new and many of its uses may be untested; theft, loss or destruction of key(s) to access the blockchain; intense competition and rapid product obsolescence; cybersecurity incidents; lack of liquid markets; slow adoption rates; lack of regulation; third party product defects or vulnerabilities; reliance on the Internet; and line of business risk. Blockchain technology may never develop optimized transactional processes that lead to realized economic returns for any company in which the Fund invests. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. BITS and BKCH are non¬diversified.
Carefully consider the Funds’ investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Funds’ summary or full prospectuses, available at globalxetfs.com. Read the prospectus carefully before investing.
Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC or Mirae Asset Global Investments.
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