Unveiling the world of crypto ETFs: a guide to features and trading strategies with TradingView

Crypto ETFs, or cryptocurrency exchange-traded funds, are investment funds that manage portfolios of cryptocurrencies. These funds are traded on stock exchanges, allowing investors to buy and sell shares throughout the trading day.

Crypto ETFs aim to provide a convenient and regulated means for investors to invest in the cryptocurrency market without directly owning the underlying assets.

Currently, investors have access to portfolios based on the popular cryptocurrency bitcoin (BTC/USD), approval for ethereum-based ETFs is expected this spring. The value of crypto ETF shares fluctuates based on the collective performance of the underlying cryptocurrencies.

On 10th January 2024, a historic event took place when the U.S. Securities and Exchange Commission (SEC) gave the official nod to all 11 spot bitcoin ETFs. This decision has made a significant impact on the further development of the entire crypto market.

Top 3 aspects for understanding crypto ETFs

Diversification. Crypto ETFs provide the opportunity to broaden and diversify your investment portfolio with cryptocurrencies. This allows you to add another asset type without the need to register on crypto exchanges or have an in-depth understanding of digital currencies.

Liquidity. ETFs are traded on traditional stock exchanges, providing liquidity and ease of buying and selling compared to direct cryptocurrency investments. This liquidity is crucial for investors looking for flexibility in managing their portfolios.

Regulatory compliance. Crypto ETFs adhere to regulatory frameworks, ensuring a level of investor protection that may be absent in direct crypto investments. This compliance can attract institutional investors and contribute to the mainstream adoption of cryptocurrencies.

TradingView for technical analysis

TradingView is a globally renowned charting platform and a vibrant community used by over 50 million traders around the globe. TradingView empowers its users with best-in-class charting tools, live market data, a comprehensive analytical suite and trading integrations with selected partners. It is a unique space where market enthusiasts can chart, chat, and trade in one place.

TradingView is a powerful platform for technical analysis that offers a wide range of tools and features for analysing crypto ETFs. Find out how to do it with its handy features!

Interactive charts

TradingView provides interactive and customisable charts, allowing you to analyze historical price data, identify trends, and apply various technical indicators.

The Line chart

Technical indicators

The platform offers a plethora of more than 400 technical indicators and strategies, such as Moving Averages, Relative Strength Index (RSI), Williams Alligator and Bollinger Bands, empowering you to make data-driven investing decisions.

Williams Alligator indicator

Drawing tools

In addition to its advanced charting capabilities, TradingView offers a diverse set of more than 110 drawing tools that enable users to conduct comprehensive technical analysis such as trendlines, Fibonacci retracements, and support/resistance levels to identify potential entry and exit points.

Tools for graphic analysis

Read more about TradingView’s useful tools on EXMO.com.

Other TradingView features

Watchlists

Create watchlists to keep track of your preferred crypto assets. This feature is particularly valuable for those who do not have the opportunity to continuously monitor the markets but want to stay informed about specific assets.

Sparks

TradingView’s Sparks feature allows you to discover popular and trending assets in the market. This is an excellent tool for identifying potential investment opportunities or gaining insights into market sentiment.

Community insights

Traders on TradingView can share their analyses, strategies, and ideas with the community. Engaging with a diverse group of traders can provide valuable insights and enhance decision-making.

As the popularity of crypto ETFs continues to grow, utilising platforms like TradingView becomes imperative for investors seeking to optimize their trading strategies. The combination of diversified exposure through ETFs and the analytical capabilities of TradingView can empower investors to navigate the dynamic world of cryptocurrencies with confidence.

Remember to conduct thorough research and consider consulting with financial professionals before making any investment decisions. Happy trading!