Displaying items by tag: crypto

Cryptocurrencies tumbled as concerns over a broader U.S. stock selloff overshadowed recent efforts by President Trump to support the industry. Bitcoin dropped more than 3% in early Asian trading, while Ether sank as much as 6% to its lowest level since October 2023 before recovering some losses. 

The decline followed a sharp selloff in technology stocks, with the Nasdaq 100 plunging 3.8%, its worst session since October 2022. Despite Trump’s executive order to establish a U.S. Bitcoin reserve, investor sentiment remained fragile as macroeconomic risks took center stage. 

Analysts noted that leveraged crypto-related ETFs were among the hardest hit, with some plunging more than 30% in a single day. While Bitcoin hovered around $79,300, traders were eyeing key support levels at $73,000 and $70,000, where stronger buying interest could emerge.

Finsum: While many think of crypto as hedge against market volatility, we need to remember that those hedges are a little effective on the currency side. 

Cryptocurrency is making its way into retirement accounts, but it's not the right fit for every investor. Crypto IRAs, also known as bitcoin IRAs, allow individuals to hold digital assets like bitcoin and ether within tax-advantaged accounts. 

While these accounts offer potential tax benefits—especially within a Roth IRA—they come with high fees, regulatory uncertainty, and extreme price volatility. Unlike traditional brokerage firms, crypto IRA providers operate under different standards, adding another layer of risk. 

Some investors may find bitcoin ETFs a lower-cost alternative to direct crypto ownership within an IRA. Regardless of your approach, diversification remains crucial to balancing the risks and rewards of crypto in a retirement portfolio.

Finsum: Crypto is a very good alternative to integrate into the portfolio, but most investors either over or under index so be careful when integrating into your portfolio.

Former President Donald Trump’s newly announced sovereign wealth fund has sparked speculation that it may include Bitcoin and other cryptocurrencies. Given his administration’s support for digital assets, experts believe this fund could serve as a vehicle to invest in crypto without bureaucratic hurdles. 

Some argue that incorporating Bitcoin and other digital assets could bolster the U.S. economy while positioning the country as a leader in the crypto sector. However, skeptics highlight the risks of volatility, regulatory uncertainty, and governance challenges tied to managing crypto within a government-backed investment fund. 

Other nations, including Norway, already have exposure to Bitcoin through their sovereign wealth funds, further fueling debate over the potential impact of the U.S. following suit. 

Finsum: If implemented, this move could accelerate institutional adoption of crypto while reinforcing America’s role in the evolving digital asset landscape.

Apollo has introduced a tokenized private credit fund, partnering with Securitize to offer on-chain access to corporate lending and structured credit. The fund, available on Solana, Ink, Ethereum, Aptos, Avalanche, and Polygon, marks Securitize’s first integration with Solana and Kraken’s layer-2 network, Ink. 

Apollo Diversified Credit Fund, managing over $1.2 billion, delivered an 11.7% return in 2024, significantly outperforming U.S. Treasuries. Christine Moy of Apollo highlighted its role as a stable, high-yield complement to crypto assets and tokenized treasuries. 

Private credit tokenization is gaining traction, with Securitize CEO Carlos Domingo noting its potential alongside falling interest rates. Apollo sees this initiative as a stepping stone toward decentralized finance innovations, including automated portfolio rebalancing and smart contract-driven collateral management.

Finsum: This is an interesting crossover and perhaps crypto is a natural path to get more alt exposure. 

A spot Ethereum ETF is an investment fund that directly holds Ethereum, providing a regulated way for investors to gain exposure to the cryptocurrency. The SEC approved the first spot Ethereum ETFs in July 2024, following the approval of spot Bitcoin ETFs earlier that year. 

Unlike Ethereum strategy ETFs, which rely on futures contracts, spot ETFs track Ethereum’s price more directly and often come with lower fees. A competitive fee war among issuers has led to aggressive price cuts and temporary waivers to attract investors. 

While these ETFs offer easier access for retirement accounts, they lack features like staking rewards, which are available to direct Ethereum holders. Despite their launch, Ethereum’s price saw little immediate movement, leaving the long-term impact of these funds uncertain, but a new presidency could create a lot of upside. 

Finsum: These ETFs are a great way to get crypto exposure, and while volatility is still very high, the Trump admin has already made it clear they are crypto friendly.