Quote:
Originally Posted by Manhattanboy
Anyone investing in Bitcoin?
The Globe refers to an ETF type fund that trades on the TSX called The Bitcoin Fund (TSX:QBTC-T) and which tracks the value of Bitcoin.
Not sure how much I would want to risk, not so much on the value of Bitcoin, but if it really took off how safe would the underlying shares or units (or whatever they are) be down the road?
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If you are asking if the TSX fund is safe, the answer is yes.
The way funds work is they are Unit Trusts. What that means is they are singular entities that do noting but hold the assets of the fund. And the unitholders have the only claim on those assets. So they are safe.
The underlying assets - whether it be bitcoin in this case, or whatever - can go to zero, but that is what you are betting against any time you make an investment.
The fund does not create any additional risk - unless the fund is leveraging the asset, but I don't think that is happening here.