Ethereum (ETH-USD) is surging following speculation that the Securities and Exchange Commission (SEC) may approve ether ETFs. VettaFi Investment Strategist Cinthia Murphy joins Wealth! to discuss cryptocurrency ETFs and what the latest news could signal for the sector.

Bitcoin spot ETFs were approved earlier this year, which Murphy says have seen "robust demand." The success has fueled interest in other crypto ETFs: "It took about ten years for regulators to be OK with spot bitcoin ETFs. And now, five months in, we're talking about spot ether ETFs," the strategist adds.

She says that those looking to get into cryptocurrency should invest in spot ETFs and also points to gold ETFs as a "phenomenal" opportunity to diversify portfolios.

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Melanie Riehl

Video Transcript

If the surging this week after the securities and exchange commission known in your hood as the sec signals, they're ready to move on an ETF approval for the currency under certain criteria.

Now, this comes as Bitcoin surges to 71,000 thanks to increased spot ETF buying as part of the ETF report brought to you by invest QQQ joining me.

Now we've got Cynthia Murphy verify investment strategist to break down how crypto ETF S could be or should be your next play here.

All right.

So for those who are curious about how to play crypto within their ETF portfolio here, what are the top considerations they should be keeping in mind, Cynthia, hey, Brad, you know, there's a lot going on in this space and a lot that we didn't expect to be going on in this space this week.

So, you know, if you are a crypto enthusiast or you're interested in crypto space, obviously, 2024 was the year for Spot Bitcoin ETF approvals, those products are out there, they're tried, tested and the demand has proven to be really robust, not only in retail channels, but also in the institutional channel.

Which I think surprised a lot of us.

So if you want to dab into crypto as an advisor or as even retail through an ETF those spot products are out there today.

There's also futures products that have been in the market for a couple of years already.

That's all good, you know, well, and done.

What's, what's at stake here now is the arrival potential arrival spot Ether ETF.

So the next level, the next wave of crypto product in ETF wrappers and that's what we're, you know, in pin and needles watching.

Is it going to happen this week?

We were assuming it wasn't going to happen.

It all came so quickly it took, you got to remember, it took about 10 years for regulators to be OK with the spot, Bitcoin ETF S and now in five months in, we're talking about spot their ETF S but we're watching this week, whether these are gonna be tools that are gonna be approved for investors everywhere.

I is it immediately clear where if we see massive inflows into crypto specific spot ETF S like we've seen with Bitcoin or like we're about to see potentially with Ether or Ethereum, where else in the ETF landscape is set to see perhaps some outflows as there's more of perhaps uh fanfare or attention that gets drummed up for the Cryptocurrency touching ETF S. You know, I love that question bred because it actually touches on something we've all been puzzling about all year which is gold.

ETF S. So gold has been phenomenal really, really strong performer as an asset.

We keep reading about central banks all over the world, buying gold like crazy, you know that sticky inflation story is still a supporter of the space and you know, everybody probably on gold for, for safety for and yet we don't see the demand show up in the ETF S as much as you would expect given the performance.

And one of the conversations we've been having is, is it because there's other options of the crypto being one of them?

So it's been kind of interesting that the pursuit for alternatives in a portfolio, the diversification, you know, which is like the risk management for, you know, risks that we don't see typically has gone into gold.

But now crypto is emerging as an interesting other option, same with commodities a little bit.

But it's been kind of fascinating to see, you know, where these flows end up going into just lastly while we have you here, Cynthia copper copper is up over 27% this year.

I mean, there's been a ton of fanfare around this and it's precious metals really and the counterparts, the gold and silver also up this year.

Is this a space that investors should look more into right now?

Yeah, metals have been a great story this year and on the copper side is that industrial metal story, I mean, copper is key to just about everything we're trying to do from energy transition to industrial manufacturing, all sorts of things.

So copper is a really, really strong metal for, for the future of where we're headed in terms of energy production and all of those things.

So it makes sense that it's really strong.

But you gotta remember, you know, things like industrial models like copper, they're very dependent on economic growth.

So we have to continue seeing like uh you know, GDP growth, economic activity in order for industrial models to remain as a strong player.

Cynthia Murphy, who is the verify investment strategist, Cynthia.

Great to see you.

Thanks so much for hopping on with us.

Thanks for having me.