Allocation of capital for sustainable profits for a long-term investor in the crypto market.
1. Digital currency
a. Nature
• Is a digital asset based on blockchain, decentralized, not dependent on a central bank.
• Can be divided into 3 main groups:
- Store of Value: Bitcoin (BTC).
- Smart Contract Platform: Ethereum (ETH), Solana, Avalanche.
- Specialized applications: Stablecoin (USDT, USDC), DeFi token, GameFi, NFT.
b. Future value
• Bitcoin: increasingly viewed as “digital gold” due to its scarcity (21 million BTC).
• Ethereum and smart contract platforms: provide infrastructure for Web3, decentralized finance (DeFi), NFT, on-chain AI.
• Stablecoin: becoming a bridge between traditional financial systems and crypto.
• Legal trends: many countries are gradually recognizing crypto, increasing reliability and liquidity.
2. Crypto ETF funds
a. Concept
• ETF (Exchange Traded Fund): exchange-traded fund, traded like stocks on the stock exchange.
• Crypto ETF: allows investors to buy and sell crypto assets indirectly through fund certificates, instead of directly holding wallets and private keys.
b. Main types
1. Spot Bitcoin ETF:
• The fund buys and holds Bitcoin directly (e.g., BlackRock's iShares Bitcoin Trust, Grayscale Bitcoin Trust).
• Provides transparency and legitimizes BTC as a traditional investment asset.
2. Ethereum ETF (currently under review by the SEC, could open up a “new wave”).
3. Futures ETF:
• Invests in futures contracts (Bitcoin Futures, Ethereum Futures).
• Does not directly hold BTC/ETH, but tracks prices through derivatives.
