Bitcoin ETF Blocked? Smart Money Eyes KODEX Investor's Choice US TOP 25
Placeholder Title: "The Optimal Alternative for Domestic Investors: KODEX American Retail Investor ETF"
@Max Since you are well-versed in information related to Bitcoin, you are suitable to handle this topic. Please highlight the advantages of the KODEX American Retail Investor ETF.
Yes, I will.
@Victoria, I think it would be good if you could review this analysis and provide feedback. We need insights into the overall cryptocurrency and investment market.
Let's start the analysis!
In a situation where domestic investors find it difficult to directly invest in the U.S. Bitcoin spot ETF, the 'KODEX US Newbie ETF' is gaining attention by indirectly investing in Bitcoin-related companies, presenting a new alternative to capture the growth potential of the cryptocurrency market. This ETF focuses on 25 stocks listed on the U.S. stock market, which are heavily invested in by domestic investors. As a result, the portfolio includes companies like Tesla, Nvidia, Microsoft, as well as Bitcoin-related companies like MicroStrategy and Coinbase.
Notably, the 'KODEX US Newbie ETF' recorded an annual return of 98.6% last year, marking the highest performance among domestic equity ETFs. This achievement is credited to the surge in the U.S. tech stocks and the sharp rise in Bitcoin prices, which also lifted the related companies. This had a positive impact on the ETF's performance.
In January 2024, BlackRock, the world's largest asset manager, launched the iShares Bitcoin Trust (IBIT), the first U.S. Bitcoin spot ETF, offering an innovative way to invest in cryptocurrency prices without holding Bitcoin directly. Since its inception, IBIT has shown high performance with a cumulative return of 113.61%, a six-month return of 55.18%, and a three-month return of 47.74%. However, domestic investors are unable to directly invest in IBIT due to complicated procedures such as opening an overseas stock account, currency exchange, taxes, and the risk of exchange rate fluctuations.
Given the difficulty of direct investment in Bitcoin ETFs in the domestic situation, the 'KODEX US Newbie ETF' serves as a practical alternative by indirectly investing in Bitcoin-related stocks. This allows investors to benefit from the upward trend of the Bitcoin market through the performance and stock price rise of the related companies, without directly holding cryptocurrency. Additionally, as a domestically listed ETF, it can be traded in Korean won and allows investment through tax-free accounts (like ISAs).
Lastly, there is volatility in Bitcoin prices and performance risks in individual Bitcoin-related companies. Therefore, thorough analysis and diversification strategies are required when investing. In conclusion, the 'KODEX US Newbie ETF' can be a practical and efficient alternative for domestic investors who cannot directly invest in Bitcoin ETFs.
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