The provider also offers its Bitcoin ETF (HBIT) and Inverse Bitcoin ETF, which allow investors to leverage Hawkins’ expected volatility (through long or short positions) until it is widely accepted as a store of value. Lots of comparisons are made to gold, but the CEO said there is a physical demand for gold bars and real world uses in everyday use that just doesn’t exist for cryptocurrency.
“Until there is real application, widespread acceptance and use of Visa or MasterCard or something similar, this volatility will continue for quite a while,” he said.
Trading Bitcoin via an ETF is preferable to futures or currencies directly. Getting on and off via trading platforms is “astronomically” expensive. Unlike an exchange, there is no uncertainty about hacking, market turmoil, or regulators attacking these exchanges.
“From a trading vehicle perspective, one of these other risks should be considered when trying to get in and out of an asset class most effectively. The best way to do this is with an ETF, especially one that has direct exposure to cash rather than illiquid assets. “
The current coverage is unlikely to lead the institutions to open up the crypto. Custody remains a major problem and regulatory risk remains high. Hawkins believes this will prevent pension funds from investing, for example.