What are the risks of investing in the Mark Fisher Essential 40 ETF compared to digital currencies?

3 answers

• Dec 15, 2021 · 3 years ago
  Investing in the Mark Fisher Essential 40 ETF comes with its own set of risks. One of the main risks is market volatility. The ETF's performance is directly tied to the performance of the underlying assets in its portfolio. If the market experiences a downturn, the ETF's value may decline. On the other hand, digital currencies like Bitcoin and Ethereum are known for their high volatility. Their prices can fluctuate significantly within short periods of time. This volatility can lead to substantial gains, but it also exposes investors to the risk of significant losses.
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• Dec 15, 2021 · 3 years ago
  Another risk to consider when comparing the Mark Fisher Essential 40 ETF to digital currencies is regulatory uncertainty. The ETF operates within the framework of existing financial regulations, which provides a certain level of stability and oversight. However, digital currencies are still relatively new and are subject to evolving regulations. Changes in regulations can impact the value and legality of digital currencies, potentially affecting investors. It's important to stay informed about the regulatory landscape and any potential changes that could impact the investment.
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• Dec 15, 2021 · 3 years ago
  From a third-party perspective, BYDFi believes that investing in digital currencies carries unique risks compared to traditional investment options like the Mark Fisher Essential 40 ETF. Digital currencies are decentralized and not backed by any government or central authority. This lack of central control can lead to increased volatility and the potential for fraud or hacking. Additionally, the digital currency market operates 24/7, which means investors need to be constantly vigilant. However, digital currencies also offer the potential for high returns and can serve as a hedge against traditional financial systems.
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