Back in 2009 when we first heard about Bitcoins, thanks to Satoshi Nakamoto, no one could've predicted what bitcoins would've become in the last 8 years. It was even harder to imagine the wave of innovation and financialization what will follow the digital assets.

Originally, Bitcoins, Litecoins and alike were considered as the instruments of wealth preservation - aka digital gold, as well as medium of transaction - aka digital currency. As the realm of cryptospace evolved, so did the uses and types of crypto tokens. As adoption of cryptocurrency technology continues to increase, a number of crypto products have emerged to support investments, raising of venture capital and even preparing for retirement.

Two most common crypto products used by financial institution are ICOs (initial coin offering) and crypto currencies ETFs (Exchange-traded fund) or trusts.

Crypto currencies ETFs

A new Bitcoin ETF proposed by Winklevoss twins in March this year, was infamously rejected. Another Bitcoins ETF that was proposed a few days later was also rejected. Yet, another institution - Grayscale’s Bitcoin Investment Trust (GBTC) - is seeking approval of its newly proposed ETF. The decision should be made by September of this year. I would like to point out that Grayscale already lunched Ethereum classic ETF earlier this year.

The Ethereum Classic Investment Trust enables investors to gain exposure to the price movement of ETC through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping ETC.
-- Grayscale

You might think, why would you buy Bitcoin or Ethereum ETF when you can simply buy Bitcoins and Ethereum token directly? There are a couple of reasons from investor prospective. Investors do not necessarily want to go thru the process of buying and storing the crypto tokens. While some of us take certain aspects of cryptocurrencies for granted, many investors are not educated about cryptocurrencies and not willing to take risks of buying and storing it safely.

Another reason to use ETFs is that most insurance companies are hesitant to get involved into cryptocurrency space due to security concerns and issues with custodial rights of the crypto. Also, some institutions are restricted to invest only in certain financial instruments in which ETFs would come handy.

This would lead to crypto price explosion if ETFs get approval as the majority of the money has yet to enter the sector.

ICOs

ICOs are somewhat similar to Initial Public Offering (IPO), but significantly less regulated and rigorous. ICOs are primarily used by startups to raise capital from venture capitalists or banks. ICOs are good news for entrepreneurs as they can raise fund by going directly to the investors or target audience. Also, ICOs offer great flexibility on the return on the investments, for instance, ICOs my issue buybacks of their shares when the company hits a certain benchmark. Also, ICO tokens can be traded on open market, potentially at much higher price.

OK then, how much do startup raise and how quickly you would ask? One of the Mozilla co-founders startup - Brave - has recently raised $35mln in 30 seconds.

There seems to me an endless list of ICOs nowadays.

BTC IRAs

Have you ever though of retiring on Bitcoins? Not a problem. Here is your Bitcoin IRA, the company created and managed by the former US Mint Director, Ed Moy, who offers investments in BTC as well as upcoming Ethereum IRA in ETH.

Bitcoint IRA is no different from regular IRA. You can choose between Roth IRA (invest your after tax dollars) or traditional IRA (invest with pretax dollars). You can start withdrawing funds (without penalty) at the age of 59 1/2.

If you still have doubts whether crypto currencies can work as retirement vehicles, here is a quote from Fidelity Investments CEO, Abigail Johnson

I love this stuff – bitcoin, ethereum, blockchain technology – and what the future holds

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Cheers!!!
~Alex.