What are the risks associated with investing in custom ETFs focused on digital assets?

1 answers

• May 01, 2022 · 3 years ago
  Investing in custom ETFs focused on digital assets carries certain risks that investors should be aware of. The digital asset market is known for its volatility, which means that the value of the ETF can fluctuate significantly. Regulatory uncertainty is another risk factor to consider, as the legal framework for digital assets is still evolving. Liquidity can also be a concern, as some digital assets may have limited trading volume. Lastly, investors should be cautious about the security of their digital assets, as they are often stored in online wallets that can be susceptible to hacking or theft. It's important to thoroughly research and understand these risks before investing in custom ETFs focused on digital assets.
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