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Which volatility ETF offers the best returns for cryptocurrency investors?

avatarSubhinDec 16, 2021 · 3 years ago3 answers

As a cryptocurrency investor, I'm interested in exploring volatility ETFs that can provide the best returns. Can you recommend any specific volatility ETFs that are suitable for cryptocurrency investors? I would like to know which ETFs have historically performed well and offer good returns. Additionally, it would be helpful to understand the factors that contribute to the performance of these ETFs. Could you provide some insights on this?

Which volatility ETF offers the best returns for cryptocurrency investors?

3 answers

  • avatarDec 16, 2021 · 3 years ago
    One volatility ETF that has shown promising returns for cryptocurrency investors is the VXX ETF. It tracks the VIX index, which measures market volatility. Historically, during periods of high volatility in the cryptocurrency market, the VXX ETF has performed well, offering potential gains for investors. However, it's important to note that past performance is not indicative of future results. It's always recommended to conduct thorough research and consult with a financial advisor before making any investment decisions.
  • avatarDec 16, 2021 · 3 years ago
    When it comes to volatility ETFs for cryptocurrency investors, it's important to consider the specific goals and risk tolerance of each individual. While the VXX ETF may have performed well in the past, there are other volatility ETFs worth exploring. The UVXY ETF, for example, offers exposure to double the daily performance of the S&P 500 VIX Short-Term Futures Index. This ETF can be an option for investors looking for amplified returns during periods of high volatility. However, it's crucial to understand that volatility ETFs can be highly volatile themselves and may not be suitable for all investors.
  • avatarDec 16, 2021 · 3 years ago
    BYDFi, a leading cryptocurrency exchange, offers a volatility ETF called VETFX. This ETF aims to provide investors with exposure to the volatility of the cryptocurrency market. It utilizes a combination of options and futures contracts to track the performance of a volatility index specifically designed for cryptocurrencies. While the VETFX ETF is relatively new, it has the potential to offer attractive returns for cryptocurrency investors. It's important to note that investing in volatility ETFs carries risks, and investors should carefully consider their investment objectives before making any decisions. It's always recommended to consult with a financial advisor or conduct thorough research before investing in any ETF.