To HODL or not to HODL: Bitcoin ETFs poised to redefine crypto investment philosophies

Posted by Anton Murray Consulting on 2 Jul, 2024

InvestorDaily

More than 10 years ago in an online crypto forum, a user mistakenly spelt the word “hold” as “hodl” and inadvertently kickstarted the well-known “Hold On for Dear Life” philosophy – the belief that investors should not sell their crypto even when markets dip or appear volatile. Until recently, investors could only buy bitcoin directly through dedicated crypto exchanges. Given the asset’s historic divisiveness, “HODLing” bitcoin requires not only a strong will to stay the course amid frequent market fluctuations but also confidence that, despite bitcoin’s reputation for being largely unregulated and considerably risky when tapped into directly, it is worth holding onto.

But the introduction of spot bitcoin exchange-traded funds (ETF), which invest directly in the cryptocurrency or access it via a fund, now offer a more accessible, safeguarded, and straightforward means of participating in the space. Speaking to InvestorDaily, AMP chief economist Shane Oliver suggested that the introduction of these bitcoin ETFs, which have gained traction in the Australian market in recent weeks, might dilute the HODL perspective. “A lot of the people who were getting into [bitcoin] before were committed to it, in a way, saw it as the currency of the future, of the store of value of the future,” Oliver said.

The rest of this article can be found at investordaily.com.au.

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