Law BlockBeats news, October 24, China Fund News published "Wall Street's first Bitcoin ETF crazy!" "Driven by money and optimism, bitcoin's price surge provides plenty of reasons for retail investors to buy the ETF: the threshold is low, it is easy to buy, and the underlying asset is still on the rise, but professionals advise retail investors not to buy easily," the article said.
China Fund News noted that the existing ETFs invest in bitcoin futures traded on the CME futures market, with nearly 45 percent of their exposure in the November futures contract. If the fund maintains this pace of inflows, it will have no futures to buy at the end of the month because of position limits. If that happens, the net value of the fund will have a considerable tracking error with the price of bitcoin. Once the market turns and there is a mass exodus of money from virtual currencies, bitcoin ETFs are likely to see similarly rapid declines, leaving retail investors who are less knowledgeable about the market with significant losses. Etfs do not make risky assets safer; Retail investors are not advised to buy ETFs or futures without understanding their complex product structures.