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Market Risks Looming? Why Bitcoin ETFs Are Standing Out

Spot bitcoin ETFs have been part of the ETF landscape now for more than two years. Ever since the SEC approved their use, they’ve become an important toolset for ETF investors, drawing billions in inflows. Now, they may be poised for renewed interest, as monetary and market risks are growing. Bitcoin ETFs like the Fidelity Wise Origin Bitcoin Fund (FBTC ) may offer some benefits that can help investors and advisors meet portfolio goals amid growing uncertainty.Key Takeaways: FBTC charges a 25 bps fee, tracking a spot bitcoin index. The fund may be poised to benefit from the so-called debasement trade, in which investors move from dollars to gold or bitcoin. The fund could help diversify portfolios, as pressure rises on the dollar from macro risks. Why look to bitcoin ETFs? Pressure is growing on the U.S. dollar as global yields continue to rise. U.S. debt exceeded $40 trillion for the first time, while rising Japanese yields threaten the important Yen carry trade. The ongoing fight over the Strait of Hormuz, meanwhile, puts on even more pressure. Bitcoin can offer a strong option in the so-called debasement trade. The debasement movement sees a struggling dollar as an opportunity to shift assets into gold or bitcoin. While gold has its advantages relative to short-term volatility, bitcoin may have greater upside. Despite potential competition between AI tech and crypto categories, they may also benefit one another. An AI agent-heavy future could see increased use of bitcoin online. FBTC provides a strong candidate to get that bitcoin ETF exposure for those interested in the debasement trade. The spot bitcoin ETF charges a 25 basis point fee to provide exposure to the spot price of bitcoin. The fund does so via a bitcoin price feed, aggregating the flow of multiple bitcoin services in a window. See more: How Fidelity’s Thematic ETFs Unlock Tech Stocks The strategy has seen its performance spike amid growing interest in bitcoin, potentially as part of the debasement trade. FBTC has returned 30.2% in the last month, according to ETF Database data. The fund could, then, be an intriguing offering to consider as a diversifier amid growing market pressure. Looking ahead, it also celebrates three years of operation in January — potentially spiking right as clouds continue to darken. For more news, information, and analysis, visit the Crypto Content Hub.

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