Parents who want to buy crypto for their kids have several options:
1. Create a brokerage account to buy and hold crypto. Parents can buy cryptocurrencies, store the holdings separate from their personal account, and transfer funds to their child when they turn 18.
Note: With UNest Plus, parents can buy and hold crypto in a specific account set aside for the benefit of their child.
2. Instead of maintaining a separate account, parents can open a personal account at any broker or exchange, such as Coinbase, and purchase crypto using cash. Once their child turns 18 years old, parents can gift the crypto to their child.
3. Parents can give their child indirect exposure to crypto demand by investing in a cryptocurrency futures ETF. ProShares Bitcoin Strategy ETF (BITO) is a popular choice. Note: Because this approach involves buying futures contracts to roughly track the price of Bitcoin, neither the parents nor ProShares owns the underlying crypto.
4. Parents can buy a cryptocurrency Trust, such as the Grayscale Bitcoin Trust, through over-the-counter (OTC) exchanges.
5. Parents can buy shares of particular companies who have business ties to the crypto industry. Examples include Coinbase Global, Inc. (symbol: COIN) and Block, Inc. (symbol: SQ).
This material is for informational purposes only and should not be construed as financial, legal, or tax advice. You should consult your own financial, legal, and tax advisors before engaging in any transaction. Information, including hypothetical projections of finances, may not take into account taxes, commissions, or other factors which may significantly affect potential outcomes. This material should not be considered an offer or recommendation to buy or sell a security. While information and sources are believed to be accurate, UNest does not guarantee the accuracy or completeness of any information or source provided herein and is under no obligation to update this information.