Wave Financial Offers Indirect Exposure To BTC Via Investment Fund Yields
An investment firm called Wave Financial has released a new product that is intended to give investors some indirect exposure to the Bitcoin (BTC) market. The company, which is based in California, affirms that this is the first crypto derivatives yield fund in the U. S. market.
The main idea is that the returns will not be in Bitcoin, but in fiat instead. The investors never actually need to buy any BTC themselves, so they are “protected” from anything that they may fear in the industry.
How The Investment Works
Basically, when people sign up, they get the privilege (but the obligation, the company affirmed) to buy BTC at a certain rate. For instance, if the price of BTC is around $10,000 USD, they can pay a premium to buy it and get it in around a month. They pay $12,000 USD, for instance, and hope that the price is higher than this in a month.
When the month has ended, the person can either buy the BTC for the price or leave it. This way, investors don’t need to lose. They can simply not buy the asset if the price is not good. This considerably diminishes the risks and the premium is used to finance the operation.
According to Wave Financial, people who invest in this program can earn up to 18% in a year. The funds are not guaranteed, however, as they depend on the price of Bitcoin, but at least people can manage their losses if the prices do not go up. As the market is lacking a variety of Bitcoin derivatives, some investors might be interested in this offering.