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The American ETF WisdomTree Managed Futures Strategy Fund (WTMF) decided to invest 1.5% of the total assets ($ 2.46 million) in bitcoin futures. Apparently, the asset manager is not at all embarrassed by the fall in the BTC rate.
WTMF bought futures on the Chicago Mercantile Exchange to boost the fund’s performance. They are not going to purchase cryptocurrency, but in the future they may invest an additional $ 5.74 million in futures contracts.
Bitcoin has always been a great tool for diversifying investments in traditional financial assets.
Our goal is to open up access to cryptocurrency for investors and control risks through a systematic trend following strategy that responds quickly to changing market conditions, the WTMF press service said.
Last year, the return on WTMF was only 14.93%, and over the past 30 days, the owners of the fund’s shares have suffered losses of 0.51%. Last year’s statistics show that investing in bitcoin futures is not very efficient. For example, the first American ETF ProShares Bitcoin Strategy ETF, which invested money in futures, went down by 8.41% at the end of 2021.
According to the chief strategist of the financial portal DailyFX Christopher Vecchio, instead of investing in futures, money should be invested in bitcoins. Buying BTC will bring more profit for two reasons. First, traders do not pay fees for holding digital assets. Secondly, the value of bitcoin under contracts is usually higher than the spot price.
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