FOMO ETFs Catching on Due to Stock Market Rotation
The past 12 months have witnessed high volatility in the stocks and shares markets, with the latest downturn in March being indicative of current market stability or instability. One answer to investor uncertainty is the FOMO ETF or Fear of Missing Out.
The new FOMO fund is going to be launched in May. The idea behind the concept is to offer investors a wide access to asset prices that were pushed higher through the fear of missing out, allowing investors to make the most of short-term market trends. So, if you are concerned about having missed the boat where Bitcoin is concerned, worry no longer. This new FOMO could be just what you need.
He Who Hesitates May No Longer be Lost
Bitcoin is still a relatively new invention, and as such, it is mostly millennials who have grabbed onto its shirttails for a wild ride. And wild it has been, with upturns and downturns that can leave you exhilarated or frustrated depending on your timing. It’s why the majority of the more seasoned investors have held back.
However, FOMO is a persistent sensation, and having seen many younger, brasher investors cash in handsomely, many of the “old school” are beginning to be sorely tempted. It’s a sentiment that is now being propped up by the fact that unlike Bitcoin’s last big surge in 2017, the current rally stands on the back of institutional investors depositing millions of Pounds into the market.
Would You Be Interested?
Would you, as a private investor, be interested in taking out a FOMO when they become available? Many financial wealth specialists think you might be, and that is why Tuttle Tactical Management, an American Capital Management company that specialises in trend aggregation by applying their in-the-know agility to portfolio management, has recently lodged a registration statement with the US Securities and Exchange Commission for a FOMO ETF.
Working with Emerging Markets
The express aim of this new product is to react to investors’ fears of missing the boat amid a period of a rally. This innovative ETF is based on a unique tactical model they have created to track securities that are gaining in value while navigating away from those whose values are diminishing.
The new products work with emerging market stocks in the USA and abroad, SPACs (Special Purpose Acquisition Companies), equity and fixed income ETFs, as well as volatility and inverse volatility exchanges and ETNs (Exchange Trade Notes).
The latter – ETNs, was banned by the UK’s Financial Conduct Authority in January 2021, with the FCA advising consumers to beware of crypto-linked investment scams. But FOMO ETFs are not really for the inexperienced private investor anyway. They are more likely to be used by professional management wealth companies, experts in the investment arena.
Has the UK Shot Itself in the Foot?
However, foreign markets will be rubbing their hands in glee with the ban. They see it as a significant setback to the UK in terms of maintaining its dominant role in the worldwide Fintech hub. It follows the UK Government snubbing of Fintech companies when they excluded them from the Coronavirus Business Interruption Loans Scheme. Up until now, the UK has been seen as a champion of Fintech.
To find a way around the ETN ban, some savvy UK investors have looked into setting up agreements with online brokers in the EU and Switzerland, in particular where the sale of ETNs continues.
Some people might come across from the angle that a ban like this is good for retail customer and good for the financial services arena too. But the fact of the matter is that digital is now a global phenomenon, as indeed is digital finance.
Going Against the Trend
The very essence of crypto is that it is unregulated. So surely, not only does this ban contravene that sentiment, but it also highlights that any jurisdiction-based bans like this should be deemed questionable.
In a truly global world – the very world of crypto – investors will go wherever they see fit to find the products and services they want. All that local bans achieve in doing is to force customers to look abroad.
How About Regulated Crypto Funds?
Back on the new FOMO ETF front, the secret to its future success will be staying current and catching any trends immediately they take place. To do this, the new investment product will be rebalanced on a weekly basis.
For investors who, on one hand, would like access to crypto, but who on the other hand, are nervous about venturing too far away from more traditional investments, there is something called Regulated Crypto Funds. The providers of these aim to calm the concerns that potential investors may have about accessing and storing Bitcoin. They claim to negate the likelihood of eWallets being hacked while they serve as the regulated custodians of the assets.