StashAway has announced the addition of Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) to its portfolio options. This move enables Malaysians to invest in the two largest cryptocurrencies through a regulated and trusted platform.

The introduction of these ETFs comes during a significant period for the cryptocurrency market, with increasing institutional adoption and Bitcoin’s price surpassing the USD 100,000 milestone. The newly inaugurated US Presidential administration’s support for crypto-friendly regulations has further bolstered investor interest in this emerging asset class.

Wong Wai Ken, Country Manager of StashAway Malaysia, highlighted the growing demand for cryptocurrency investments among Malaysians. “Many of our clients have expressed interest in the long-term potential of major cryptocurrencies like Bitcoin but have been hesitant because of security concerns or the complexities of navigating crypto exchanges. We’re now offering them a familiar and safe way to diversify their portfolios by incorporating crypto through a platform they already know and trust,” he said.

Despite the increasing adoption of cryptocurrencies, challenges remain for many investors, particularly around the complexities of owning and securing digital assets. Issues such as the potential loss of funds due to compromised private keys, as well as the fluctuating and often opaque fee structures of crypto exchanges, have deterred some from participating in the market. By offering BTC and ETH ETFs, StashAway simplifies access to cryptocurrencies while addressing these concerns.

According to StashAway, research has shown that incorporating a small allocation of Bitcoin into a diversified portfolio can enhance long-term returns without significantly increasing volatility. Studies suggest that a 5% allocation to Bitcoin within a traditional 60/40 portfolio can improve the risk-to-reward ratio over time. StashAway’s Flexible Portfolios allow clients to include BTC and ETH ETFs alongside other asset classes, such as equities, bonds, and gold.

The BTC and ETH ETFs, Fidelity Wise Origin Bitcoin Fund (FBTC) and Fidelity Ethereum Fund (FETH), are available within StashAway’s Flexible Portfolios, which already feature over 70 ETFs representing various asset classes. Consistent with StashAway’s transparent fee structure, Flexible Portfolios carry a management fee of 0.2% to 0.8% per annum. Portfolios containing a single ETF are subject to a flat management fee of 0.3% per annum, while the crypto ETFs themselves have an expense ratio of 0.25% per annum.

For further details on StashAway’s new cryptocurrency ETF offerings, visit https://www.stashaway.my/bitcoin-etf. 

• TAGS:
• Bitcoin
• Crytocurrency
• ETF
• Ethereum
• StashAway
• Wong Wai Ken