StashAway introduces Bitcoin and Ethereum ETFs to its platform

Digital investment platform StashAway has recently introduced Bitcoin and Ethereum exchange traded funds (ETFs) on its platform, providing Malaysians with the opportunity to invest in the two largest cryptocurrencies through a secure and regulated medium.

These ETFs are now accessible through StashAway’s versatile portfolio, empowering investors to construct diversified portfolios that include exposure to both cryptocurrencies and traditional asset classes like equities, bonds, and gold.

Despite the increasing acceptance of crypto in mainstream and institutional circles, there remains a significant portion of investors who are hesitant to venture into the world of cryptocurrencies due to concerns about security issues, such as the risk of losing funds because of a compromised private key for a crypto wallet.

“Our clients have shown keen interest in the long-term potential of major cryptocurrencies like Bitcoin, but have been reluctant to invest due to security worries or the complexities associated with navigating crypto exchanges. We are now providing them with a familiar and secure method to diversify their investment portfolios by integrating cryptocurrencies through a platform they already know and trust,” explained Wong Wai Ken, the country manager of StashAway Malaysia.

The crypto ETFs available within the flexible portfolios include the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Fidelity Ethereum Fund (FETH), each with an annual expense ratio of 0.25%.

This launch arrives at a critical juncture in the cryptocurrency market as institutional adoption gains momentum and the price of Bitcoin surpasses the US$100,000 milestone. Additionally, the recent support shown for crypto-friendly regulations by the new US administration has sparked a renewed interest among investors in this emerging asset class.

Many believe that the current progress in the crypto industry owes much to former US President Donald Trump, who vowed to become the first “crypto president” and actively advocated for crypto-friendly policies during his tenure. The establishment of a task force by the US Securities and Exchange Commission’s (SEC) new leadership to develop a regulatory framework for crypto assets signals a significant move towards revamping crypto policy under Trump’s administration.

According to Wong, various studies have indicated that including a small allocation to Bitcoin in a diversified portfolio can boost long-term returns without necessarily increasing volatility. He suggests that a 5% allocation to Bitcoin within a traditional 60/40 portfolio can enhance returns while improving the risk-to-reward ratio over the long term.

StashAway’s fee structure for flexible portfolios is designed to be clear and transparent, with an annual management fee ranging from 0.2% to 0.8% and no lock-ins or minimum investment requirements. For flexible portfolios consisting of a single ETF, a flat management fee of 0.3% per annum is applicable.

StashAway’s initiative to incorporate Bitcoin and Ethereum ETFs into its platform represents a strategic move to cater to the evolving needs of investors who seek exposure to cryptocurrencies within a disciplined and regulated investment framework.