As investors have flocked to digital assets, we’ve seen more and more ways to invest in cryptocurrency. One of the latest options is a cryptocurrency mutual fund. In this guide, we’ll go over how cryptocurrency mutual funds work and where you can invest in them.
What is a cryptocurrency mutual fund?
A cryptocurrency mutual fund is a collection of cryptocurrency assets packaged together as one investment.
If you’re unfamiliar with mutual funds, they’re professionally managed portfolios that include stocks, bonds, and other securities. Investors pool their money to invest in mutual funds. Because these funds contain a variety of assets, investors get a diverse portfolio in a single investment.
Each mutual fund has an expense ratio, which is the fee to invest in it. The expense ratio is a percentage of the assets under management.
Cryptocurrency mutual funds follow the same concept as traditional mutual funds. The difference is that they’re designed to invest specifically in cryptocurrencies and assets tied to…