What is Roundhill Bitwise ETF?
The Roundhill Bitwise ETF (ticker: BMV) is an Exchange Traded Fund that tracks the performance of the global cryptocurrency market. It was launched in March 2021 and is managed by the asset management firm, Roundhill Investments. BMV is the first ETF to focus on the cryptocurrency space, and is designed to provide investors with exposure to the digital asset class in a more traditional, cost-efficient, and easily-traded format.
Why Invest in BMV ETF?
The BMV ETF offers investors an easy and cost-effective way to gain exposure to the cryptocurrency market. By investing in BMV, investors are able to access a diversified portfolio of digital assets without the need to buy and manage individual coins. The portfolio is composed of the top 10 cryptocurrencies by market capitalization, allowing investors to gain exposure to the most liquid and widely-traded digital assets. Additionally, BMV is traded on major stock exchanges such as the NYSE Arca, making it easily accessible to investors.
Performance of BMV ETF
Since its launch in March 2021, BMV has performed strongly in line with the broader cryptocurrency market. The fund has gained over 200% in the first 18 months, outperforming both the S&P 500 and the Nasdaq 100. This strong performance is primarily driven by the strong growth in the underlying digital asset prices, as well as the increasing demand for digital assets from institutional investors.
Risks of Investing in BMV ETF
As with any investment, there are certain risks associated with investing in BMV. Firstly, the price of cryptocurrencies is highly volatile and subject to rapid changes. As such, the value of BMV may be subject to significant fluctuations, and investors should be aware of the potential for significant losses. Additionally, the fund is relatively new and has only been around for 18 months, meaning there is limited historical data to analyze its performance. Finally, the fund is not actively managed and is subject to the performance of the underlying digital assets, meaning that it is exposed to any changes in the cryptocurrency market.
Conclusion
The Roundhill Bitwise ETF (BMV) is an innovative product that provides investors with an easy and cost-effective way to gain exposure to the cryptocurrency market. The fund has seen strong performance since its launch in March 2021, and is traded on major stock exchanges such as the NYSE Arca. However, investors should be aware of the risks associated with investing in BMV, such as the potential for significant losses and the lack of historical data.
