Crypto Currency ETF Strategy | Infinitus Wealth

CRYPTO & BLOCKCHAIN ETF STRATEGY

Creating a cryptocurrency investment strategy using Exchange-Traded Funds (ETFs) can offer a more diversified and less hands-on approach compared to holding individual cryptocurrencies directly. Here's a comprehensive strategy for investing in cryptocurrencies through ETFs:

I. Objective

The primary objective is gaining exposure to the cryptocurrency market through ETFs, providing a diversified and relatively less risky approach than holding individual cryptocurrencies. The strategy aims for capital appreciation while managing the inherent volatility of the crypto market.

II. Asset Allocation

Cryptocurrency ETFs: 80-100%
- Allocate the majority of the portfolio to well-established cryptocurrency ETFs that track the performance of major cryptocurrencies.
Traditional Assets or Cash: 0-20%
- Hold a small portion in traditional assets or cash to manage liquidity or seize opportunities in other markets.

III. Selection Criteria for Cryptocurrency ETFs

Expense Ratio:
- Choose ETFs with low expense ratios to maximize returns.
Reputation and Track Record:
- Consider ETFs with a reputable issuer and a track record of effectively tracking the performance of the underlying assets.

IV. Risk Management

Regular Review:
- Periodically review and rebalance the portfolio to ensure it aligns with the overall investment strategy.

V. Security Measures

Choose Reputable Exchanges:
- If purchasing ETFs directly from an exchange, choose reputable platforms with a strong security track record.
Understand ETF Structure:
- Understand the structure of the ETF and how it tracks the underlying assets to mitigate risks associated with fund management.

VI. Monitoring and Rebalancing

Regular Monitoring:
- Regularly monitor the performance of the chosen cryptocurrency ETFs and stay informed about changes in the market.
Rebalance as Needed:
- Rebalance the portfolio based on changes in market conditions, new developments, or shifts in the cryptocurrency landscape.

VII. Reporting and Communication

Transparent Reporting:
- Provide transparent and regular reporting on the performance of the cryptocurrency ETF portfolio.
Educate and Communicate:
- Educate clients about the structure and benefits of cryptocurrency ETFs and maintain open communication.

VIII. Regulatory Compliance

Stay Informed:
- Stay updated on regulatory developments related to cryptocurrency ETFs and ensure compliance with relevant regulations.

It's crucial to note that while ETFs can offer a more diversified approach, they still expose investors to the inherent risks of the cryptocurrency market. As with any investment, carefully consider your risk tolerance and investment goals.

Strategies Overview

At Infinitus Wealth Management, we deliver personalized wealth management strategies that align with your specific financial objectives and individual risk tolerance. Our approach is grounded in a thorough understanding of global financial markets and consistent research, allowing us to construct diverse, resilient, and custom portfolios intended to withstand market volatility while pursuing attractive returns.

We build custom portfolios and offer multiple investment strategies to meet our clients' unique investment goals. We actively manage several US equity, international equity, fixed income, tax-exempt fixed income, and blended strategies ranging from large-cap to small-cap equity and income-generating strategies.

Asset Allocation: Our investment strategy starts with asset allocation, which we consider the most vital determinant of portfolio returns and risk management. We create a balanced mix of various asset classes, such as equities, fixed income, cash, real estate, and alternatives. The blend is customized to your risk appetite, financial objectives, and investment time horizon.

Diversification: We adhere to the principle of diversification among asset classes and within each asset class. By spreading investments across various sectors, geographic locations, and market capitalizations, we aim to mitigate risk potential.

Risk Management: Risk assessment forms a crucial part of our investment strategy. We continuously monitor and adjust portfolios to manage exposure to market risks. By utilizing advanced risk management techniques and tools, we ensure your portfolio aligns with your personal risk tolerance and long-term objectives.

Tactical Asset Allocation: We go beyond a static allocation approach by employing tactical asset allocation strategies. Our investment team actively adjusts the asset mix in response to short-term market predictions to exploit market inefficiencies or seize new opportunities while maintaining a balance with the strategic asset allocation targets.

Tax-Efficient Investing: Our strategies consider the impact of taxes on your investment returns. We aim to maximize after-tax returns through strategies like tax-loss harvesting, holding investments longer for favorable long-term capital gain rates, and strategically placing investments in tax-advantaged accounts.

Regular Portfolio Review and Rebalancing: Investment is not a one-time action but a dynamic process that requires ongoing oversight. We conduct regular reviews of your portfolio to ensure it remains in line with your goals and risk tolerance. Rebalancing, when necessary, helps maintain the desired level of risk and return.

At Infinitus Wealth Management, we understand that every client's investment journey is unique. As such, we don't offer a one-size-fits-all strategy but instead customize each portfolio to suit your individual needs and preferences. Our team is committed to working closely with you, providing the guidance and resources necessary to navigate the complex world of investing and to help your wealth grow and persevere over time.