Of all the finance-related questions I’m asked, one has popped up more than any other in recent times. It’s not one of the usual suspects, either, such as the cost-of-living crisis, housing or superannuation. No, it’s about crypto ETFs, or cryptocurrency exchange-traded funds.

Usually, the conversation begins when my interlocutor says they’ve finally taken the plunge and invested in crypto for the first time. The once-volatile market used to make them wary, they say, but now they feel safe because it’s being offered in ETFs.

The introduction of crypto ETFs has sent investors into a frenzy. But it’s important to remember the market is still unregulated and volatile.Credit: Dionne Gain

Since the ETFs are offered by globally recognised investment firms, the crypto market must have become more regulated and safe, right?

Wrong.

Cryptocurrency has always been volatile. Since its inception 15 years ago, the unregulated digital market has charted record highs and crushing lows, with some investors walking into the sunset with hundreds of millions in their digital wallets and others losing everything, and then some. But over the past 18 months, the crypto roller-coaster has been dizzying, even by its own standards.

The market hit a low in November 2022 when FTX, an exchange platform and hedge fund operated by Sam Bankman-Fried, collapsed. FTX customers lost $US8 billion ($12.1 billion), and Bankman-Fried was jailed........

© Brisbane Times