Author: David Flynn, Chief Investment Strategist and Director.
Protected Bitcoin ETFs are a suite of exchange-traded funds (ETFs) designed to provide investors with exposure to Bitcoin’s price performance while offering defined levels of downside protection over a one-year outcome period.
These ETFs, launched in January of this year offer structured protection for Bitcoin, addressing its notorious volatility. The image below shows the performance of a 100% capital protected Bitcoin ETF (blue line) vs the price of Bitcoin (red line) since the date the product was released in January.
The ETF is designed to match the positive price return of Bitcoin up to a defined upside cap of 12%, while protecting against 100% of losses over a one year period (before fees and expenses).
For those seeking increased upside exposure, there is a 90% capital protected ETF offering nearly 30% upside and an 80% capital protected ETF offering 50% upside.
Things to know:
These ETFs are newly issued regularly.
Tax treatment: CGT
Unlike tracker bonds, there is no counterparty credit risk.
These ETFs trade on regulated exchanges throughout each business day, so investors are not locked in for the entire one year period.
Expenses ratios are very low relative to tracker bonds and kick-out bonds.
Baggot Investment Partners can monitor and alert clients when upside caps are met before the one-year outcome period ends so that clients can exit early and if they so choose, invest in a new capital protected Bitcoin ETF with new upside caps.
For more information and how to avail of this investing opportunity, email pbrown@baggot.ie
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Baggot Asset Management Limited t/a Baggot Investment Partners is regulated by the Central Bank of Ireland
CRO Number: 565467
Central Bank Ref: C143849
Disclaimer
Disclaimer
Important Information
It is vitally important that before you make any investment decision that you seek advice from Baggot Investment Partners (or an independent financial advisor) who can assess your needs and ensure a personal recommendation is made as to the suitability of this product as a part solution for your investment needs and objectives.
NOTHING CONTAINED ON THIS KEY FEATURES DOCUMENT CONSTITUTES INVESTMENT, LEGAL, TAX, OR OTHER ADVICE, NOR IS TO BE RELIED ON IN MAKING AN INVESTMENT OR OTHER DECISION. YOU SHOULD OBTAIN RELEVANT AND SPECIFIC PERSONAL ADVICE FROM BAGGOT INVESTMENT PARTNERS BEFORE MAKING ANY INVESTMENT DECISION.