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What are the best volatility ETFs for cryptocurrency investors?

avatarHasnain GujjarNov 26, 2021 · 3 years ago3 answers

As a cryptocurrency investor, I'm interested in exploring volatility ETFs. Can you recommend some of the best volatility ETFs for cryptocurrency investors? I'm looking for ETFs that can help me capitalize on the price movements and volatility in the cryptocurrency market.

What are the best volatility ETFs for cryptocurrency investors?

3 answers

  • avatarNov 26, 2021 · 3 years ago
    One of the best volatility ETFs for cryptocurrency investors is the ProShares Ultra VIX Short-Term Futures ETF (UVXY). UVXY aims to provide investors with 1.5 times the daily performance of the S&P 500 VIX Short-Term Futures Index, which measures the volatility of the stock market. This ETF can be a good option for cryptocurrency investors looking to profit from short-term volatility in the cryptocurrency market. Another popular volatility ETF is the iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX). VXX is designed to track the performance of the S&P 500 VIX Short-Term Futures Index and offers exposure to the volatility of the stock market. It can be used by cryptocurrency investors to hedge against market downturns and capitalize on short-term price movements. For a more diversified approach, the VelocityShares Daily 2x VIX Short-Term ETN (TVIX) can be considered. TVIX seeks to provide investors with 2 times the daily performance of the S&P 500 VIX Short-Term Futures Index. This ETF can be suitable for cryptocurrency investors who want to amplify their exposure to short-term volatility in the cryptocurrency market.
  • avatarNov 26, 2021 · 3 years ago
    If you're looking for a volatility ETF that specifically focuses on the cryptocurrency market, the Bitwise 10 Private Index Fund (BITW) could be a good option. BITW is designed to track the performance of the Bitwise 10 Large Cap Crypto Index, which includes the 10 largest cryptocurrencies by market capitalization. This ETF allows cryptocurrency investors to gain exposure to the overall volatility of the cryptocurrency market without having to invest in individual cryptocurrencies. Another volatility ETF to consider is the Grayscale Ethereum Trust (ETHE). ETHE is a trust that holds Ethereum and aims to provide investors with exposure to the price movements of Ethereum. While not specifically designed as a volatility ETF, ETHE can still be used by cryptocurrency investors to capitalize on the volatility of Ethereum and the broader cryptocurrency market. Please note that investing in volatility ETFs involves risks, and it's important to do thorough research and consider your risk tolerance before making any investment decisions. It's also recommended to consult with a financial advisor who specializes in cryptocurrency investments.
  • avatarNov 26, 2021 · 3 years ago
    BYDFi, a digital asset exchange, offers a range of volatility ETFs for cryptocurrency investors. You can explore their platform to find volatility ETFs that suit your investment goals and risk appetite. BYDFi provides a user-friendly interface and a wide selection of ETFs, making it convenient for cryptocurrency investors to access and trade volatility ETFs. It's always a good idea to compare different platforms and consider factors such as fees, security, and customer support before choosing an exchange to trade volatility ETFs.