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While the market continues to drop, something interesting is happening, one that could see the market rise by a huge margin, and that’s the rise of structured crypto investment products. Coinbase has announced the launch of an index fund targeted at investors with over $250k in deposits. This comes a few days after Huobi launched a similar product, albeit without the deposit restriction.  All this points to one thing, and that’s the fact that institutional money is coming into crypto pretty soon, and it will be huge. That’s because such structured products present the perfect entry point into crypto for institutional players without them having to pick individual cryptos.

The Coinbase index fund is one of the most interesting structured products in crypto because of its huge minimum investment required. For Coinbase to come up with such a product, it means that they have done their research and arrived at the conclusion that there is a huge demand for such a fund amongst institutional players, and high net worth investors.  For small investors, this is something to be excited about, for a number of reasons.

Firstly, it is a validation of the long-term sustainability of this market. There is no way institutional players mostly banks and pension funds, would invest in something that has no long-term growth potential. They are called smart money for a reason. The fact that they are putting in money into crypto is a good indicator that if you have money in crypto, the long-run potential is good. The market may be shaky in the short-term, but long-term, crypto will go big.

Secondly, this is likely to inject some much needed liquidity into the market. In the last few months, the crypto market has been hit with low volumes, which is why every little bad news that hits the market pushes it lower. For instance, the Coinrail exchange was so significant because it happened at a time when volumes were low in the market. With the entry of index funds into the market, such wild fluctuations will be a thing of the past, and the market will rise. An increase in volumes will also push up the value of this market due to the increase in demand, which has been lacking in this market for the last few months.

Therefore, this drop in price could actually be an advantage for people looking to get into crypto with the long-term view in mind.  That’s because by getting in at current prices, the potential gains on the upside are huge. The potential is even higher for the top 10 cryptos, which seem to be the target for most upcoming ETFs. Cryptos like Bitcoin, Ripple, and Ethereum could rally way higher than their 2017 highs thanks to these products. All it will take is a little patience until these structured crypto products gain traction in the market, and crypto will be headed to the moon. It’s time to stock up on good products before it’s too late.


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This information should not be interpreted as an endorsement of cryptocurrencies or a recommendation to invest. Historic performance is no guarantee of future returns. As an investment class, cryptocurrencies are speculative investments and investing in cryptocurrencies involves significant risks – they are highly volatile, vulnerable to hacking and capital loss and sensitive to secondary activity. Before investing you should obtain advice and decide whether the potential return outweighs the risks.
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