What crypto ETF to buy now
Crypto's overall technical outlook, volatility, and high acquisition cost constitute a stumbling block to its general acceptance as a viable investment asset. Cryptocurrency Exchange Traded Funds (ETFs) aim to significantly reduce cryptocurrency ownership costs – allowing crypto-inept investors to outsource crypto trading to experts without spending a fortune.
While the Traders Union (TU) understands that cryptocurrency is not all rainbows and unicorns, their variables-rich analysis suggests a market rebound from this highly devastating crypto winter. In light of the current crypto market bear run, where crypto prices have been nothing short of depressing, it is essential to identify the best crypto ETFs to buy.
Start investing in ETFs now with eToro!What is a crypto ETF?
A crypto or digital currency ETF tracks cryptocurrencies, tokens and other blockchain-based assets to enable investors to build a diversified crypto portfolio at a lower acquisition cost. Some crypto ETFs invest and acquire shares in blockchain companies providing blockchain-powered solutions for a wide range of industrial and digital applications. It allows crypto-inept investors to benefit from the market's liquidity and protects against crypto volatility.
Think of Cryptocurrency Exchange Traded Funds (ETFs) as a crypto asset portfolio. It may consist of a single cryptocurrency or several cryptocurrencies and blockchain-based digital assets and tokens. For example, an investor can buy shares of a crypto fund consisting of several cryptocurrencies; thus, a price increase in one cryptocurrency can hedge against a price decrease in another.
How to choose a crypto fund (ETF)
There is a gulf between a crypto fund and other traditional asset allocation and investment funds. Crypto funds deal with new intangible assets, including Bitcoin, Ethereum and Tether. Choosing the best is a different kettle of fish, requiring an objective analysis of critical indices for growth.
Currently, there are about 13,000 crypto funds globally. Analysts predict that 80% of these funds will not survive the current crypto winter as most need more human resources, push and a roadmap to achieving success. Before choosing the best crypto ETF fund, here are the key parameters to consider.
Management Team: Any average Joe with a good marketing strategy and some dollars to throw around can float a crypto fund. However, a crypto fund's sustainability and overall success depend on its management team. It is essential to lift the veil and unravel the management team before investing in a crypto fund. What is their level of expertise and experience? What track records of excellence do they boast of? Are they integrity challenged, and do they have any criminal allegations or infractions hanging around their corporate necks?
Fees: Crypto funds are not cryptocurrency trading charities. They charge a fee for every cryptocurrency investment. While they generally make crypto ownership and acquisition cheaper, some charge a premium as transaction and management fees amidst other incidental expenses. The goal of every investment is cost minimization and returns maximization. Minimize transaction costs by giving precedent to crypto funds with low transaction fees over others.
Diversified crypto portfolio: volatility is perhaps the greatest bane of crypto investment and adoption. Traders Union advocates giving precedent to crypto funds with several cryptocurrencies over ones with a singular one. No one should keep all their eggs in a basket. Crypto eggs are best distributed across different portfolios to cushion against the borderline benign crypto volatility force.
Roadmap: Every crypto fund must have a relatable roadmap for success. Its essence should not be buried deep beneath crypto technicalities, buzzwords and tech jargon.
Regulatory compliance: Regulatory-compliant digital currency ETFs have a bigger chance of survival. It may be necessary to involve experts in exercising due diligence to ensure that a crypto fund ticks all the right regulatory compliance boxes. A pointer to a regulatory-compliant digital currency ETF is its listings on the stock exchange.
Top cryptocurrency ETFs to buy now
8 best cryptocurrency ETFs to buy now:
Proshares Bitcoin Strategy ETF
VanEck Bitcoin Strategy ETF
Valkyrie Bitcoin Strategy ETF
BitWise 10 Crypto Index Fund
Global X Blockchain & Bitcoin Strategy ETF
Grayscale Ethereum Trust
Amplify Transformational Data Sharing ETF
Siren Nasdaq NextGen Economy ETFs
Proshares Bitcoin Strategy ETF
Acclaimed as the first crypto ETF to be licensed by the United States government, Proshares Bitcoin Strategy's dominance in the crypto fund space will stand the test of time.
Co-founded and managed by Michael Sapir, a Georgetown University and University of Miami graduate of law and Business administration, respectively, this Bitcoin ETF amassed $1 billion in assets within days of launch.
Trading under the BITO symbol, this Bitcoin ETF invest in Bitcoin futures against Bitcoin spot investment. Investors acquire the Proshares of Bitcoin ETF stocks while the funds realized through the stock are invested in Bitcoin futures contracts, US treasury bills and other conservative short-term investment vehicles for guaranteed profitability. Read also about what a Bitcoin Spot ETF is and how it works in the TU article.
Key Highlights and Takeaways
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Full name: Proshares Bitcoin Strategy ETF
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Launched Date: 19th October 2021
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Exchange Ticker: BITO
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Expense Ratio: 0.95%
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Market Price (per share): $10.32 as at 19/12/2023
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Trading Volume: 2,842,713
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Minimum investment amount: $10,000
VanEck Bitcoin Strategy ETF
An overall stellar performance since its 2021 inception places this Bitcoin ETF as one of the best and cheapest crypto ETFs to consider in 2023. While this fund focuses mainly on Bitcoin, its portfolio includes cash, bonds and stocks. VanEck's significant comparative advantage over other crypto ETFs is its relatively low expense ratio which stands at 0.65%. Investors can trade the VanEck Bitcoin ETF stock via the dedicated Cboe exchange.
Investors may, however, find the fund's requirement of a direct brokerage account to trade its Bitcoin ETF stock distasteful and quite limiting. Beyond this seaming limitation is a Bitcoin ETF fund managed by some of the most experienced, savvy investors and asset managers with a wide range of experience to boast.
There are no redemption or performance fees, monthly subscriptions and other miscellaneous investment returns eroding fees. This explains why the VanEck Bitcoin strategy is one of the most sought-after crypto funds by inexperienced crypto investors.
Key Highlights and Takeaways
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Full name: VanEck Bitcoin Strategy ETF
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Launched Date: 16th November 2021
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Exchange Ticker: BTCH2
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Expense Ratio: 0.65%
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Market Price (per share): $16.61 as at 19/12/2023
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Minimum investment amount: $100,000
Valkyrie Bitcoin Strategy ETF
Trading under the BTF exchange ticker, Valkyrie Bitcoin Strategy ETF shot into the limelight a few days after ProShares' Bitcoin Strategy public launch. The fund invests only in high volatility-prone Bitcoin futures without a clear-cut risk-ameliorating strategy.
To underscore its commitment to transparency and ethical investment, the fund's website contains a caveat to investors, warning them of the crypto market's extreme price volatility. It advises investors to acquire Valkyrie’s shares as represented by its bitcoin ETF ticker only with funds they can afford to lose.
Valkyrie Bitcoin ETF ranks highly due to its pursuit of ethical investment practices where facts are laid bare to investors without sugarcoating.
Investors' funds are invested in Bitcoin futures traded solely on the Chicago Mercantile Exchange. Ownership of Valkyrie shares presupposes investors' consent to Bitcoin futures trading by the fund manager. Suffice to say investors need not trade Bitcoin futures directly; it is outsourced to the fund.
While only allowing accredited investors on its platform, Valkyrie Bitcoin Strategy ETF does not charge a performance fee. However, the management fee stands at 0.4%.
Key Highlights and Takeaways
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Full name: Valkyrie Bitcoin Strategy ETF
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Launched Date: 22nd October 2021
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Exchange Ticker: BTF
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Expense Ratio: 0.95%
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Market Price (per share): $6.64 as at 19/12/2023
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Minimum investment amount: $25,000
BitWise 10 Crypto Index Fund
Risk-averse investors will particularly find this crypto ETF interesting. BitWise 10 Crypto Index Fund leaves nothing to chance by investing in the top ten most valuable currencies. The fund views cryptocurrency under a broad range of prisms, including market capitalization, volatility and the cryptocurrency use case to ascertain investment-worthy viability.
Represented by the BITW exchange ticker, investors require no special brokerage account to trade their shares as they can be traded over the counter at massive discounts. While investors may be subject to annual income tax accounting, BITW does not charge for sales and allied activities.
Easily tradeable BITW ticker, cost-friendliness and a diversified cryptocurrency portfolio places this fund heads and shoulders high above others. This explains its consistency since its 2017 inception. The funds traded cryptocurrencies include Bitcoin, Ethereum, Chainlink, Polygon, Cardano, Polkadot, Litecoin, Solana, Avalanche, and Uniswap, Administered by Theorem Fund Services. BITW charges no performance fee.
Key Highlights and Takeaways
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Full name: BitWise 10 Crypto Index Fund
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Launched Date: 22nd November 2017
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Exchange Ticker: BITW
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Expense Ratio: 2.25%
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Market Price (per share): $5.84 as at 21/12/2023
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Minimum investment amount: $10,000
Global X Blockchain & Bitcoin Strategy ETF
Also trading under the BITS bitcoin ETF ticker, ownership of Global X Bitcoin ETF stock allows investors to own a piece of specially selected blockchain companies. These companies are viewed through the prism of long-term viability, as evidenced by their cutting-edge blockchain solutions and other crucial variables to ascertain profitability. The fund gives precedent to software engineering blockchain companies, crypto mining and exchange platforms. While everything appears diversified, the fund's major stock in trade seems to be Bitcoin ETF stocks.
Besides investing in specially selected Blockchain companies, Global X crypto fund also invests in relatively stable Bitcoin futures markets. The goal is to offer access to Bitcoin futures without needing technical expertise.
Key Highlights and Takeaways
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Full name: Global X Blockchain & Bitcoin Strategy ETF
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Launched Date: 15th November 2021
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Exchange Ticker: BITS
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Expense Ratio: 0.65%
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Market Price (per share): $19.69 as at 21/12/2023
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Trading Volume: 2,842,713*
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Minimum investment amount: $25,000
Grayscale Ethereum Trust
As its name suggests, this Ethereum-centric crypto fund invests solely in the Ethereum cryptocurrency. Investors' share values are decided based on CoinDesk Ether Price Index. Experts predict a generally favorable future outlook despite Ethereum's gloomy outlook caused by the raving crypto winter due to Ethereum's web3 and metaverse use cases.
With over $3.7 billion worth of assets under its control and management, Grayscale Ethereum Trust is one of the most robust crypto funds on the planet. It offers one of the most straightforward Ethereum exposure-gaining routes to crypto-inept investors. They are not required to buy, store and secure ETH. Acquiring Grayscale Ethereum Trust ETF stock allows investors to invest in Individual Retirement Accounts (IRA) through Millennium Trust and the Entrust group.
Key Highlights and Takeaways
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Full name: Grayscale Ethereum Trust
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Launched Date: 15th November 2021
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Exchange Ticker: ETHE
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Annual Fee: 2.5%
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Expense Ratio: 2.50%
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Market Price (per share): $5.25 as at 21/12/2023
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Minimum investment amount: $25,000
Amplify Transformational Data Sharing ETF
Conceived in 2018, Amplify Transformational Data Sharing ETF focuses solely on revolutionary data-sharing blockchain companies. It invests about 80% of its funds in data-sharing capacity-developing blockchain companies according to market cap sizes. The rest are invested in BLOK partnering companies in merchant banking and other blockchain ledger-advancing solutions.
While its performance has been steady since inception, it remains to be seen how this crypto fund intends to maximize returns with its niche-focused investment vehicles. Investors can trade Amplify Transformational Data Sharing ETF primarily at the New York Securities Exchange Arca.
Key Highlights and Takeaways
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Full name: Amplify Transformational Data Sharing ETF
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Launched Date: 16th January 2018
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Exchange Ticker: BLOK
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Market Volume: 242,395
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Annual Fee: 0.28$
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Expense Ratio: 0.70%
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Market Price (per share): $5.25 as at 21/12/2023
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Minimum investment amount: Not available
Siren Nasdaq NextGen Economy ETFs
Trading under the BLCN ticker, Siren Nasdaq NextGen Economy ETFs is one of the most diversified crypto funds. While it is unclear whether it invests in Bitcoin ETF tickers, its investment in blockchain-centered companies is clear. About 20% of its net assets are invested in blockchain-affiliated companies, including Coinbase and Marathon Digital Holdings. Some of its assets are also invested in the USA, China and Canada domiciled blue chip tech companies, including IBM and Hewlett-Packard.
Investors can share the Siren Nasdaq NextGen Economy ETF shares on Nasdaq stock markets while incurring minimal cost in expense ratio. Crypto pessimist investors will gravitate towards these funds as their cryptocurrency involvement is minimal.
Key Highlights and Takeaways
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Full name: Siren Nasdaq NextGen Economy ETFs
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Launched Date: 17th January 2018
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Exchange Ticker: BLCN
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Annual Fee: Not available
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Expense Ratio: 0.68%
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Market Price (per share): $22.24 as at 21/12/2023
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Minimum investment amount: Not available
Best crypto ETFs comparison
Crypto ETFs are a high-risk investment due largely to crypto's inherent volatility. It is best to be guarded by their historical price performance before opting for one. Suffice it to say anyone of the above-discussed ETFs qualifies best. Read more about the best Bitcoin ETFs in the TU article.
ProShares Bitcoin Strategy, Valkyrie Bitcoin Strategy ETF and Bitwise 10 crypto fund offer some of the best historical price performance indexes by a long shot.
However, while ProShares Bitcoin Strategy's historical performance has been steady, its Bitcoin-centeredness leaves little to be desired. It may be antithetical to the fund's sustenance in the grand scheme of things, especially if other stable cryptocurrencies manage to replace Bitcoin as digital gold.
Valkyrie Bitcoin Strategy ETF focuses mainly on Bitcoin futures against a fair mix of other Blockchain assets. This may have a far-reaching effect on investors' funds as there are limited hedges against Bitcoin futures trading.
Here is a brief preview of the top crypto ETF funds based on the above-discussed rating.
| Full name | Ticker | Expense ratio | Underlying asset | |
|---|---|---|---|---|
Proshares Bitcoin Strategy ETF |
BITO |
0.95% |
Bitcoin futures |
|
VanEck Bitcoin Strategy ETF |
BTCH2 |
0.65% |
Bitcoin, cash, stocks |
|
Valkyrie Bitcoin Strategy ETF |
BTF |
0.95% |
Bitcoin futures |
|
BitWise 10 Crypto Index Fund |
BITW |
2.25% |
top ten cryptocurrencies |
|
Global X Blockchain & Bitcoin Strategy ETF |
BITS |
0.65% |
blockchain companies |
|
Grayscale Ethereum Trust |
ETHE |
2.50% |
Ethereum |
|
Amplify Transformational Data Sharing ETF |
BLOK |
0.70% |
blockchain companies |
|
Siren Nasdaq NextGen Economy ETFs |
BLCN |
0.68% |
blockchain-affiliated companies, blue chip stocks |
Is it a good idea to buy cryptocurrency ETFs now?
There is no straight-jacket answer to whether it's a good idea to buy cryptocurrency ETFs now or not. The decision to purchase or not has its merits and demerits.
👍 Pros
•Suitable for non-technical crypto inept investors. They need not understand crypto technicalities and nuances before investing. This is outsourced to institutional investors and analysts.
•Tax friendly: Owing to extant lax regulations, buying cryptocurrency ETFs has limited tax implications against other intangible assets, including stocks.
•Diversification: Crypto ETFs can hold more than one asset, including conservative, low risks assets like mutual funds and Treasury bills. Thus, allowing investors to diversify and hedge against crypto volatility and unfavourable price fluctuation.
•Cost efficient: Instead of buying a Bitcoin valued at $16,819, an investor can buy a Bitcoin ETF stock which technically equals Bitcoin ownership for a fraction. Also, Crypto ETFs do not charge exorbitant transaction and custody fees.
•Access to rare cryptocurrencies and tokens: Buying a crypto ETF grants access to occasional exchange inaccessible cryptocurrencies traded as crypto ETF. The inexistence of a fully developed crypto trading infrastructure prevents investors from acquiring rare cryptocurrencies that are not traded on exchange platforms.
👎 Cons
•Gloomy future outlook: Crypto's best days seem far behind as prices have significantly dropped over the past few years. Currently, prices are nowhere close to historical highs suggesting a continuous downward crypto price trajectory.
•Highly speculative assets: Crypto enthusiasts may like to disagree, but cryptocurrencies are highly speculative assets. They enjoy very few use cases to drive a sustained demand.
•Improved crypto trading and investment infrastructure: Cryptocurrency ETFs offer a cost-friendly crypto ownership and acquisition cost largely due to crypto exchanges' mediocre and cost-inefficient platforms. A strategic partnership between BlackRock and Coinbase is poised to redefine crypto trading and investment through exchange platforms. BlackRock hopes to attract traditional institutional investors to the crypto landscape through improved infrastructure. Thus, dispensing the need for crypto investing through ETFs as an improved crypto investment infrastructure will substantially reduce ETFs' comparative cost advantage over exchange platforms.
•Tightened monetary policy: To stimulate economic growth, there are strong indications that the government may tighten the country's monetary policy. This may scuffle crypto ETFs' recovery from the crypto storm. It is best to tread with caution for now.
Crypto ETFs vs buying crypto directly
Cryptocurrencies can be purchased directly through exchange platforms, including Coinbase and Binance, or technically through Crypto ETFs.
Buying directly can be quite complicated for the uninitiated. A crypto wallet, an exchange platform and a credit card are required.
On the other hand, buying a crypto ETF is as simple as buying a stock. Complicated exchange platforms are not required, and neither are crypto wallets. They can be purchased from exchange platforms over the counter.
Also, buying directly requires analyzing the price chart to predict fluctuations for profitable trading and investment. Buying crypto ETFs allows investors to outsource price analysis and prediction to professionals.
Are Crypto Investments Profitable?
Increased interest rates, FTX and Terra Luna crash, market manipulation and allied factors contributed significantly to the current crypto crash from sustained record highs despite strong correction.
Going forward, it is doubtful whether the crypto market will recover from its current winter as further corrections may further stifle its growth. It is best to steer clear of crypto investments. The risk of investment loss far outweighs the profit.
Where can I buy crypto ETFs?
eToro
The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC and eToro (UK) is licensed by the British regulator FCA. The broker also has a representative office in Australia and the USA. eToro offers over 2000 US stocks in ETF for zero fee trading.
TeleTrade
TeleTrade was established in 1994. The company won 2018 Traders Union Awards as the Best Broker in Europe. The brokerage company is a member of the Association of Forex Dealers, a self-regulatory organization in the financial market. The company is also regulated by the Cyprus Securities and Exchange Commission (CySEC, 158/11). The European branch of TeleTrade has adopted the brand name Earn.
The broker provides access to trading various currency pairs, as well as metals, stocks, cryptocurrencies, indices, and energies.
Summary
Crypto ETFs allow inept crypto investors to invest in cryptocurrencies and other Blockchain assets by acquiring ETF stocks against direct crypto trading fraught with high transaction costs and volatility.
While the market is replete with thousands of crypto ETFs, the above-discussed crypto funds stand heads and shoulders above others.
FAQ
What are the top 5 ETFs to buy?
Vanguard Total Stock Market ETF
SoFi Select 500 ETF
SPDR S&P 500 ETF
iShares Core S&P Small-Cap ETF
Vanguard Mega Cap ETF
What are the 3 best blockchain stocks?
Nvidia
Block (Formerly Square)
Accenture
What is a crypto ETF?
Also known as digital currency ETFs, crypto ETFs track crypto performance across various indices for the best investment.
What is the best crypto ETF?
The best digital currency ETF includes ProShares Bitcoin Strategy, VanEck Bitcoin Strategy ETF, Valkyrie Bitcoin Strategy ETF, BitWise 10 Crypto Index Fund, Global X Blockchain & Bitcoin Strategy ETF, Grayscale Ethereum Trust, Amplify Transformational Data Sharing ETF and Siren Nasdaq NextGen Economy ETFs.
Should I invest in cryptocurrency?
It is best to delay crypto investment for now. The market has crashed, and further corrections will aggravate the crash.
How do I know the best crypto ETF?
Check the management team, fees, regulatory compliance and historical price performance.
Team that worked on the article
Glory is a professional writer for the Traders Union website with over 5 years of experience in creating content in the areas of NFT, Crypto, Metaverse, Blockchain, or Web3 in general. Over the last couple of years, Glory has also traded on different cryptocurrency and NFT platforms including Binance, Coinbase, Opensea, and others.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.