The latest VanEck crypto fund opens the doors for institutions to buy into seven different crypto assets. Covered: VanEck Multi-Token Crypto Fund Should Normies Even Care About Crypto Funds? If anything’s clear from the investment firm’s past moves in the crypto space, it’s that VanEck wants big exposure in the crypto economy. After initially filing […] The post VanEck Is Giving Institutions Access To These Seven Cryptocurrencies appeared first on CryptosRus.

VanEck Is Giving Institutions Access To These Seven Cryptocurrencies

The latest VanEck crypto fund opens the doors for institutions to buy into seven different crypto assets.

Covered:

  • VanEck Multi-Token Crypto Fund
  • Should Normies Even Care About Crypto Funds?

If anything’s clear from the investment firm’s past moves in the crypto space, it’s that VanEck wants big exposure in the crypto economy. After initially filing for a Bitcoin spot exchange-traded fund (ETF) last year, and now pushing for a Bitcoin mining ETF this year already, VanEck is back again to introduce yet another crypto fund that trails a bit further down the risk curve.

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VanEck Multi-Token Crypto Fund

VanEck reportedly filed for its first-ever “multi-token” crypto fund. The firm’s seven picks may not come as a major surprise, however, there does seem to be one curious outlier.

VanEck’s investment product will hold Bitcoin (BTC), Ethereum (ETH), Polkadot (DOT), Solana (SOL), Avalanche (AVAX), Polygon (MATIC), and…Tron (TRX)??

While the top six have all been favorites over the past year, Tron seems to be that one layer-1 (L1) that somehow gets its foot in the door despite getting virtually zero recognition.

It’s possible that Tron is trying to make some major adjustments to flip the narrative back towards Tron’s favor; Kraken did recently start a TRX staking program, however, I don’t know how enticing 9% sounds for a chain as quiet as Tron.

While any blockchain has the potential for a heroic comeback story, statistically speaking, the odds probably aren’t in favor of any chart that moves at a ZEC-like pace. And for a reminder, here’s an update on Barry’s trade:

Should Normies Even Care About Crypto Funds?

While these institutional funds give investors good insight into what projects big money has its eyes on, the reality is that most of us are better off just buying tokens themselves rather than dancing through the hurdles involved in fund investing.

When you’re buying a fund, it’s really an IOU, not the product itself. As the time-old saying goes in crypto, “not your keys, not your coins.” Institutions that hope to reap all the benefits of Bitcoin without buying the asset itself may find themselves remembering that saying down the road when they need actual tokens to do business. A Bitcoin ETF, this VanEck crypto fund, or any crypto fund for that matter, does not give you the real innovation posed by the asset, it just gives you the financial benefits attached to holding it as an asset.

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The problem arises when that company wants to do business with another large player, but they only accept Bitcoin to make a deal. A slice of a Bitcoin ETF won’t cut it here, just as a banknote promising a share of gold won’t suffice to a chip manufacturer. That company can’t take a Bitcoin ETF and upload it to a hardware wallet, or use it to purchase coffee in El Salvador. Obviously, they won’t need to be doing that specifically, but the point is that a fund serves strictly as a financial vehicle, not as innovative technology.

Whales with money to blow may have no problem with this strategy, and many could care less about the underlying technology. However, for average people like you and me, if you’re exposing yourself to the volatility and risk that comes with crypto, you’re better off holding the real thing in case you ever really need to use it.

The post VanEck Is Giving Institutions Access To These Seven Cryptocurrencies appeared first on CryptosRus.