An easy solution to owning a piece of Crypto without 999 steps to buy one

Updated: Sep 4

Right now owning some form of Cryptocurrency (there are more than 7,000 type of cryptocurrencies out there) is the craze and seemingly the way to beat inflation (no matter what the media tell you, inflation IS happening right now as I am typing away).

I have to confess that I was struggling with the steps on how to: create a wallet/buying a cold wallet and then trying to find an exchange, paying gas fees and then trying to sell off the crypto and then trying to transfer the funds back, blah blah.

Hence if you are looking to enter the crypto space without the hassle, you can consider the below options (as long as you have a brokerage account).

Below are the 2 tickers/counters for Ethereum and Bitcoin:

1. Ticker: ETHE

ETHE is the ticker for Grayscale Ethereum Trust (ETH). It is available for trading during the normal US trading hours (SG time 2230 till 0500).

Just to give some background on what it is, quoted from:

"Grayscale Ethereum Trust is solely and passively invested in Ethereum, enabling investors to gain exposure to ETH in the form of a security while avoiding the challenges of buying, storing, and safekeeping ETH directly."

To me, being "solely" invested in Ethereum is important because I am personally not keen to spilt my crypto investment into other stuffs other than crypto (because isn't that the reason why I am investing this pot of funds in the first place - to gain real exposure to Crypto!) To quote an example, the recently launched ProShares Bitcoin Strategy ETF (BITO) does not invest directly into Bitcoin and the price and performance of bitcoin futures should be expected to differ from the current "spot" price of bitcoin. It is a different game for futures altogether. I am not saying BITO is not a bad product - it is just not what I want in the first place. I just want something that is direct, simple and track crypto prices closely.

I opened a small position recently at 44.01 as I believe in Ethereum potential. Also, with the upcoming Metaverse, buying or trading virtual assets on blockchain-based platforms will require Ethereum-based cryto token. Also, I am a believer of Loopring (Loopring is a zkRollup Layer2 for Trading and Payment). Basically, Loopring allows for low cost trading and payment on Ethereum.

I am not suggesting that you open any position, especially right now, Ethereum and Bitcoin are constantly reaching new highs. Also, please do not invest in something just because your neighbour or your colleagues or your friends tell you to but because you truly believe in the future potential of it/them.

Every share is appx 0.01007826 ETH.

2. Ticker: GBTC

It is Grayscale Bitcoin Trust. This is also a direct investment in Bitcoin (again, I like direct things. Life is so complicated already.)

Every share is appx 0.00093402 Bitcoin.

I have closed off my position in GBTC for now and I might enter again when I feel that the time is right.

These are just some of the available options to enter the crypto space other than buying the crypto (and also reducing the odds of getting scammed by dubious crypto platforms etc. I personally trust bigger Trust funds more. Grayscale Bitcoin Trust AUM is $42.2B at this time of writing.

There is another ticker for Bitcoin trust but because it is denominated in Swiss franc, I am not going to list/elaborate on it here because it lacks the convenience (you have to convert your CHf back since I believe most people do not own shares in Chf and then you have to grapple with potential exchange losses) unlike the two above which are denominated in USD. With USD, I find it easier as I could just keep the USD in my brokerage account after trading as most of my portfolio is mostly denominated in USD (I own Singapore stocks too but it is not a significant % of my portfolio right now)

I am mostly using IBKR (Interactive Brokers) because I like the ability to trade pre-market and after market hours (very few brokers support pre and after market trading). I am a typical Kiasu Singaporean so sometimes I do grab up some shares pre market (but this is generally not very advisable because trading volume is low and there is a tendency to overpay for those shares). I trade pre-market when my FOMO kicks in :X

And I find their system very comprehensive (especially if you are trading options, you will prefer a comprehensive "Desktop" solution).

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