The ways to invest in digital currencies, also known as cryptocurrencies, are increasing. Naturally, businesses want to be able to tap the large IRA market for cryptocurrencies. This article describes a new index fund that tries to invest in an assortment of digital currencies. Be warned, though, it isn’t the traditional index fund. It’s only for “qualified investors,” which means those with a minimum wealth or income defined by the SEC. You also have to have a true self-directed IRA, which means extra fees. If you’re still interested, try the link.
The upside of this fund is that it’s somewhat diversified. It invests in the 10-most popular cryptos in one fund. When I say “somewhat” diversified, keep in mind there are thousands of cryptos out there with more being created daily.
Diversification, of course, has its benefits. If the fund doesn’t move in lockstep with stocks or bonds, that could be a useful hedge. But the jury’s still out since we don’t have a lot of data to show if that’s true long term.