ETF Talk: BETH, I Hear You Calling

Beth, I hear you calling
But I can’t come home right now
Me and the boys are playing
And we just can’t find the sound…

–Kiss, “Beth”

Famed investor Peter Lynch one said, “Buy only what you understand, believe in and intend to stick with — even when others are chasing the next miracle.”

As you all know, I have not shied away from discussing cryptocurrencies. In fact, as the Editor of Crypto & Commodities Trader, it is my job to be heavily informed and to understand all the machinations in this space.

In the nascent month, Bitcoin, Ether and other cryptocurrencies have struggled a bit, however, crypto is a market that never sleeps. It is always evolving and adapting to the current reality — even in moments of volatility, there are positive signs of a recovery on the horizons.

As a crypto-supporter, and investor, I intend to stick with it, despite these uncertain times. Others might be jumping ship, but then again, maybe others don’t understand cryptocurrency in the way my job demands.

This week’s ETF, ProShares Bitcoin & Ether Market Cap Weight ETF (NYSEArca: BETH), allows investors exposure to two of the biggest cryptocurrencies available, but all in one spot.

Both Bitcoin and Ether have suffered as the market reacts to several macroeconomic factors, including the controversial tariffs from the Trump administration.

There is already some good news after less-than-ideal performances of Bitcoin and Ether earlier on in the week. As of this writing, both coins could be poised for a recovery, and many are anxiously waiting on what the first-of-its-kind White House Crypto summit will mean for all cryptocurrencies, including the two that make up 80% of this ETF’s holdings.

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BETH allows investors to capture two of the biggest, most well-known cryptocurrencies on the market, in the same non-diversified ETF. The fund seeks investment results that correspond directly to the performance of a market-capitalization weighted basket of Ether and Bitcoin.

BETH does not invest directly in the coins and does not require investors to have a cryptocurrency account. Instead, it invests in futures contracts. Investors get the opportunity to invest in this innovative market without having to pick and choose which coin to put their money in.

As evidenced by the chart, the ETF fell in the last month, but with news relating to cryptocurrency coming out daily, there is reason to believe that the main assets held in the fund will recover in the coming months.

While the rise in cryptocurrency has been beneficial for some, it may not be the right fit for those who don’t want to stick with it. Investors should always do their due diligence before adding any stock, fund or ETF to their portfolio.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Jim Woods

Jim Woods is a 20-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor. Jim is the editor of Forecasts & Strategies, Tactical Trader, TNT Trader, Five Star Trader, Bullseye Stock Trader, and The Deep Woods. His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. His articles have appeared on many leading financial websites, including StockInvestor.com, InvestorPlace.com, Main Street Investor, MarketWatch, Street Authority, Human Events and many others. Jim formerly worked with Investor’s Business Daily founder William J. O’Neil, helping to author training courses in the CANSLIM stock-picking methodology. The independent firm TipRanks rates Jim the No. 3 financial blogger in the world (out of more than 6,000). TipRanks calculates that, since 2012, he's made 361 successful recommendations out of 499 total, earning a success rate of 72% and a +15.3% average return per recommendation. He is known in professional and personal circles as “The Renaissance Man,” because his expertise includes such varied fields as composing and performing music; Western horsemanship, combat marksmanship, martial arts, auto racing and bodybuilding. Jim holds a BA in philosophy from the University of California, Los Angeles, and is a former U.S. Army paratrooper. A self-described “radical for capitalism,” he celebrates the virtue of making money from his Southern California horse ranch.