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U.K. Financial services company Hargreaves Lansdown has launched its own portfolio of investments in pensions that tracks the price of ethereum. The move is helping investors to increase their retirement pots.
Based in Bristol, the tracker works on a synthetic basis; however, it still shows a clue, a commodity, bonds or an asset collection such as an index fund, reports the Express.
Danny Cox, spokesman for Hargreaves Lansdown, said:
Unlike ETF trackers that buy the physical assets they follow, this is done in a synthetic way.
He adds, however, that the investment portfolio should only be used by "sophisticated investors" and should only be a small part of a larger portfolio.
He states:
We added it to our investment department because we saw a request from some clients.
The growth of the digital currency market continues to gain dominance. According to CoinMarketCap, bitcoin is trading at $ 5,867 while ethereum is valued at just under $ 300, at $ 297. As a result, more attention is given to the blockchain. Unsurprisingly, several governments around the world are keen to develop or develop blockchain-based applications for multiple industries, including the pension industry.
Yet while crypto is experiencing a sharp rise in prices, critics have risen against the industry. Most notable of all is Jamie Dimon, CEO of JPMorgan Chase, who called Bitcoin a "fraud" last month. He followed this by saying that it was "worthless".
More recently, Saudi Prince Alwaleed bin Talal thinks that bitcoin "will implode" because of its lack of regulation. Speaking to CNBC's "Squawk Box" he said:
It simply does not make sense. This thing is not regulated, it is not under control, it is not under the supervision of any central bank.
Of course, despite criticism of the digital currency market, the combined value of market capitalization is steadily increasing. At the time of publication, it was worth just over $ 171 billion. Not bad for something is considered a bubble.
Image from Shutterstock.