Cryptocurrency ETFs have become a popular way for investors to get into the crypto game without having to deal directly with digital currencies. These funds let you invest in cryptocurrencies just like you would with stocks, through your regular brokerage account. With the rise of Bitcoin and Ethereum, among others, there’s a growing list of ETFs to consider. Let’s take a look at some of the top cryptocurrency ETFs for 2024.

Key Takeaways

• Cryptocurrency ETFs allow investment in digital currencies without direct ownership.
• They provide a way to diversify your investment portfolio with crypto assets.
• ETFs can be traded on regular stock exchanges, making them accessible.
• The market for cryptocurrency ETFs is expanding with new offerings.
• Investors should be aware of the risks and fees associated with these ETFs.

1. iShares Bitcoin Trust

The iShares Bitcoin Trust (IBIT) has quickly become a standout in the world of cryptocurrency ETFs since its launch in January. With over $33 billion in assets under management (AUM), it’s clear that investors have embraced this ETF. IBIT offers a convenient way to invest in Bitcoin without the need to hold the cryptocurrency directly. It’s structured as a spot Bitcoin ETF, meaning it is backed by actual Bitcoin held in cold storage. This ensures that the net asset value (NAV) closely tracks the CME CF Bitcoin Reference Rate, providing transparency and reliability.

Key Features of iShares Bitcoin Trust

• Low Expense Ratio: IBIT charges a competitive fee of 0.25%, making it an attractive option for cost-conscious investors.
• Liquidity: With an average daily trading volume of around 41 million shares and a 0.03% 30-day bid-ask spread, IBIT is highly liquid, allowing investors to buy and sell with ease.
• Options Trading: The ETF is approved for options trading, adding another layer of flexibility for investors looking to hedge or speculate.

The iShares Bitcoin Trust provides a bridge for traditional investors to enter the world of cryptocurrency, offering a familiar investment vehicle with the backing of one of the largest asset management firms.

For those interested in exploring more about IBIT’s performance, the latest prices and news are regularly updated to help investors make informed decisions. This ETF has set a high bar for others in the cryptocurrency space, proving that digital assets can be integrated into mainstream investment portfolios with ease.

2. iShares Ethereum Trust ETF

The iShares Ethereum Trust ETF (ETHA) is an intriguing option for those looking to invest in Ethereum without the complexities of direct ownership. ETHA has made a mark since its launch in June, accumulating a notable $1.4 billion in assets under management (AUM).

This ETF is designed to closely follow the spot price of Ethereum, using the CME CF Ether-Dollar Reference Rate-New York Variant as its benchmark. The trust employs a custodian to store its Ethereum holdings in cold storage, ensuring security, while moving assets to a hot wallet when needed for transactions.

Key Features of ETHA

• Custodial Storage: Ethereum assets are stored securely in cold storage, minimizing risks.
• Benchmarking: Tracks the spot Ethereum price for accurate valuation.
• Liquidity: Maintains a 0.05% 30-day median bid-ask spread with over 3 million shares traded daily.

Fee Structure

• Base Sponsor Fee: Initially set at 0.25%, but currently reduced to 0.12% for the first $2.5 billion in AUM.

Despite its slower growth compared to its Bitcoin counterpart, ETHA remains a solid choice for investors seeking exposure to Ethereum through a regulated financial product. Its structure allows for simplicity and ease of access, making it appealing to both seasoned investors and newcomers alike.

3. Grayscale Bitcoin Trust ETF

The Grayscale Bitcoin Trust ETF (GBTC) has been a staple in the crypto investment world since its inception in 2013. Originally a close-ended trust, GBTC transitioned to an open-ended ETF structure in January 2024. This change helped align its market price more closely with its net asset value (NAV), enhancing liquidity for investors.

Key Features:

• Large Asset Base: GBTC boasts over $16.8 billion in assets under management (AUM), making it one of the largest Bitcoin ETFs.
• Expense Ratio: The ETF has a relatively high expense ratio of 1.5%. To mitigate costs, Grayscale has spun off 10% of its holdings into a separate entity, the Grayscale Bitcoin Mini Trust (BTC), which offers a lower expense ratio of 0.15%.
• Market Dynamics: By converting to an open-ended structure, GBTC reduced the premium/discount issues that plagued its earlier format.

GBTC remains a popular choice for investors seeking exposure to Bitcoin without the complexities of direct ownership. Its transition to an open-ended fund marks a significant shift, offering improved liquidity and price stability.

For those interested in GBTC’s performance and ratings, it continues to be a strong contender in the cryptocurrency ETF space, despite its high fees. The ongoing appeal of GBTC lies in its established presence and significant asset base.

4. Grayscale Ethereum Trust ETF

The Grayscale Ethereum Trust ETF (ETHE) is a prominent player in the world of cryptocurrency ETFs, boasting a substantial $4.6 billion in assets under management (AUM). This fund, which originally launched as a closed-ended trust in 2017, transitioned to an open-ended ETF in July, resolving its premium/discount to NAV issues. This move has made it more appealing to investors seeking liquidity and market price stability.

Key Features of ETHE:

• Expense Ratio: ETHE comes with a hefty 2.5% expense ratio. For context, a $10,000 investment would incur approximately $250 in annual fees.
• Spin-off Strategy: To address the high expense ratio, Grayscale spun off 10% of ETHE’s Ethereum holdings into the Grayscale Ethereum Mini Trust (ETH), which offers a lower expense ratio of 0.15%.
• Market Performance: As of July 2024, ETHE’s share price was around $30.64, reflecting a -2.48% change.

Grayscale’s strategic shift to an open-ended structure for ETHE aligns with the broader trend of making cryptocurrency investments more accessible and flexible. This change underscores the evolving landscape of crypto ETFs, where investor demand for transparency and liquidity continues to grow.

Investors interested in Ethereum exposure might also consider the BlackRock iShares Ethereum Trust, which experienced significant inflows recently, highlighting the growing interest and confidence in Ethereum-based investment products.

5. Roundhill Bitcoin Covered Call Strategy ETF

The Roundhill Bitcoin Covered Call Strategy ETF, known by its ticker YBTC, is a unique offering in the world of cryptocurrency exchange-traded funds. This ETF is designed to provide investors with a way to generate income while maintaining exposure to Bitcoin, but with a twist. It employs a covered call strategy, which essentially means it sells call options on Bitcoin futures to generate income.

Key Features

• Income Generation: By selling covered calls, this ETF creates monthly income through options premiums. This strategy can be particularly appealing to those looking to boost their income from investments.
• Capped Upside: While the covered call strategy provides income, it also means that the upside potential is limited. Investors should be aware that if Bitcoin’s price surges, the gains might not be fully realized.
• Indirect Exposure: The ETF doesn’t hold Bitcoin directly. Instead, it gains exposure through a “fund of funds” structure, primarily by holding the ProShares Bitcoin Strategy ETF (BITO), which invests in Bitcoin futures contracts.

Expense and Yield

• Expense Ratio: YBTC charges an expense ratio of 0.95%, which is relatively moderate compared to some other cryptocurrency ETFs.
• Distribution Yield: The ETF offers an impressive distribution yield of 21.7%, making it attractive for income-focused investors.

This ETF could be a good fit for those who want to benefit from Bitcoin’s volatility while receiving regular income, all without the complexity of trading Bitcoin or options directly. However, it’s important to consider the trade-off between income and potential capital appreciation.

6. Global X Blockchain ETF

The Global X Blockchain ETF, also known as BKCH, is a fascinating choice for those looking to dive into the blockchain space without directly holding cryptocurrencies. This ETF doesn’t actually own any cryptocurrencies or their derivatives. Instead, it tracks the Solactive Blockchain Index, which includes 25 companies involved in the blockchain industry.

One of the standout features of BKCH is its diversified portfolio, which includes major players in the crypto space like Coinbase Global Inc., Bitcoin miners such as Hut 8 Corp., and digital asset managers like Galaxy Digital Holdings. This ETF offers a unique way to gain exposure to the blockchain sector by investing in companies that are driving innovation and adoption.

Key Details

• Net Asset Value (NAV): $75.48
• Opening Price: $72.00
• Bid/Ask Spread: 5.07%
• Trading Volume: 81.5k (above the average of 63.1k)
• Day Range: $72.00 – $77.14

Investment Highlights

• Focus on Blockchain Companies: Unlike other ETFs that might hold cryptocurrencies directly, BKCH focuses on companies that are deeply involved in the blockchain ecosystem.
• Diverse Holdings: The ETF includes a mix of exchanges, miners, and digital asset managers, providing a broad exposure to the blockchain industry.
• High Trading Volume: With a trading volume that surpasses its average, BKCH is an active choice among investors.

The Global X Blockchain ETF is an intriguing option for those who want to be part of the blockchain revolution without the volatility of direct crypto investments. It’s a way to invest in the infrastructure that supports cryptocurrency markets, rather than the currencies themselves.

7. Defiance Daily Target 2X Long MSTR ETF

The Defiance Daily Target 2X Long MSTR ETF, known as MSTX, is a unique financial instrument for those who have an appetite for risk. It provides a leveraged exposure to MicroStrategy Inc. (MSTR), a company renowned for its substantial Bitcoin holdings. This ETF aims to deliver twice the daily performance of MicroStrategy’s stock price, which can lead to significant gains or losses.

Key Features of MSTX

• Leverage Factor: MSTX is designed to amplify the daily movement of MicroStrategy’s stock by two times. This means if MSTR’s stock rises by 1%, MSTX is expected to rise by 2%.
• Expense Ratio: The ETF has a relatively high expense ratio of 1.29%, reflecting the costs associated with maintaining leveraged positions through swaps.
• Volatility: Given the nature of leverage, MSTX is highly volatile and is best suited for traders who are prepared for rapid price changes.

“Investing in MSTX is not for the faint-hearted. The potential for high returns comes with equally high risks, especially if MicroStrategy’s stock experiences large swings.”

Considerations for Investors

1. Short-Term Focus: MSTX is not recommended for long-term investment due to the compounding effects of daily leverage, which can erode returns over time.
2. Risk Tolerance: Suitable for investors with a high risk tolerance who understand the implications of leveraged trading.
3. Market Conditions: Ideal for bullish investors who believe in the upward trajectory of MicroStrategy’s stock.

For those willing to embrace the volatility, MSTX offers a way to potentially capitalize on the movements of MicroStrategy’s stock. However, it’s crucial to be aware of the increased risk associated with leveraged ETFs like MSTX, as they can lead to substantial losses if the market moves unfavorably.

8. Amplify Transformational Data Sharing ETF

The Amplify Transformational Data Sharing ETF, often referred to by its ticker symbol BLOK, is a notable player in the world of cryptocurrency ETFs. This fund aims to capitalize on the growth of blockchain technology by investing in companies that are at the forefront of this digital revolution.

Key Features

• Assets Under Management: As of the latest data, BLOK manages approximately $733.9 million. This demonstrates the significant interest and trust investors have in blockchain technology.
• Expense Ratio: The ETF comes with an expense ratio of 0.76%, which is relatively standard for actively managed funds in the crypto space.

Investment Strategy

BLOK is an actively managed fund that seeks to invest at least 80% of its net assets in the equity securities of companies involved in the development and utilization of blockchain technologies. Its top holdings are a mix of well-known companies and emerging players in the blockchain space.

Top Holdings

1. Core Scientific (CORZ): This digital asset mining services provider is BLOK’s largest holding, making up about 6% of the fund.
2. MicroStrategy (MSTR): Known for its significant Bitcoin investments, MicroStrategy represents roughly 5% of BLOK’s portfolio.
3. Galaxy Digital (BRPHF): A crypto-focused financial services firm.
4. Coinbase Global (COIN): One of the leading cryptocurrency exchanges globally.

Diversification

BLOK’s portfolio is diversified across 52 holdings, with the top 10 accounting for about 38% of its assets. This diversification helps mitigate risk while providing exposure to the burgeoning blockchain sector.

Blockchain technology is reshaping industries by enhancing transparency, security, and efficiency. As this technology continues to evolve, ETFs like BLOK offer investors a pathway to participate in its growth.

Why Consider BLOK?

• Exposure to Blockchain: BLOK provides a unique opportunity to invest in the blockchain ecosystem without directly buying cryptocurrencies.
• Actively Managed: The active management approach allows BLOK to adapt to market changes and invest in promising companies as they emerge.
• Broad Portfolio: With a diverse array of holdings, BLOK reduces the volatility typically associated with individual crypto investments.

For those interested in exploring the potential of blockchain technology, the Amplify Transformational Data Sharing ETF represents a compelling option in the modern investment landscape.

9. Valkyrie Bitcoin Strategy ETF

The Valkyrie Bitcoin Strategy ETF is a fascinating option for those looking to dip their toes into the world of Bitcoin investments without directly buying the cryptocurrency. This ETF primarily invests in Bitcoin futures contracts, offering investors a way to speculate on Bitcoin’s future price movements.

Key Features

• Futures Focus: Instead of holding Bitcoin directly, this ETF focuses on futures contracts. This means it aims to profit from the price changes of Bitcoin over time, rather than its current market value.
• Regulated Environment: The ETF operates under the regulatory framework of the U.S. market, which can provide a sense of security for investors wary of the unregulated nature of direct cryptocurrency investments.
• Accessibility: It’s available through most brokerage accounts, making it easier for the average investor to gain exposure to Bitcoin without needing a digital wallet.

Performance Insights

Here’s a quick glance at some recent performance metrics:

“Investing in Bitcoin futures through an ETF like Valkyrie can be a strategic move for those who want exposure to Bitcoin’s potential upside but are concerned about the risks associated with holding the cryptocurrency directly.”

In summary, the Valkyrie Bitcoin Strategy ETF provides a structured and regulated way to engage with Bitcoin’s price dynamics. It’s particularly appealing for those who want to avoid the complexities of direct cryptocurrency ownership. Additionally, for those interested in sustainable investments, consider funds that focus on bitcoin mining companies using renewable energy.

10. ProShares Bitcoin Strategy ETF

The ProShares Bitcoin Strategy ETF, often referred to as BITO, is a game-changer for those looking to dip their toes into Bitcoin investments without directly owning the cryptocurrency. This ETF is designed to track Bitcoin futures contracts, not the spot price of Bitcoin itself. Essentially, it allows investors to gain exposure to Bitcoin through a traditional brokerage account, which is a big plus for those hesitant about setting up a digital wallet.

Key Features

• Futures-Based: BITO primarily invests in futures contracts, which means it doesn’t hold Bitcoin directly. This can be advantageous for investors wary of the security risks associated with holding actual Bitcoin.
• Accessibility: It offers a familiar investment vehicle for those accustomed to traditional stock market investments, making it easier for them to include Bitcoin in their portfolios.
• Volatility: As with all things Bitcoin, expect some volatility. The ETF’s performance can be influenced by Bitcoin’s price swings and futures market dynamics.

Performance Snapshot

Here’s a quick look at BITO’s recent performance:

Investment Considerations

• Risk Tolerance: Given its reliance on futures, BITO may not be suitable for all investors, especially those with a low risk tolerance.
• Market Conditions: Keep an eye on the broader market conditions, as these can impact the ETF’s performance.
• Historical Prices: For those interested in a deep dive into BITO’s historical performance, explore historical prices for BITO stock on Yahoo Finance.

Investing in BITO can be a strategic way to engage with Bitcoin’s potential upside without the complexities of directly purchasing and storing the cryptocurrency. However, it’s crucial to understand the nature of futures contracts and their associated risks before diving in.

11. Bitwise 10 Crypto Index Fund

The Bitwise 10 Crypto Index Fund, often referred to as BITW, is a unique player in the world of cryptocurrency investments. It offers exposure to the top 10 largest cryptocurrencies by market cap, which together represent a significant portion of the crypto market. This index fund provides a way for investors to tap into the crypto market without directly purchasing individual coins.

Key Features

• Market Cap Weighting: The fund is weighted by market capitalization, which means that larger cryptocurrencies like Bitcoin and Ethereum have a more significant influence on the fund’s performance. Bitcoin, for instance, makes up 74% of the portfolio, while Ethereum accounts for 17.1%.
• Diverse Holdings: Besides Bitcoin and Ethereum, the fund includes other cryptocurrencies such as Solana, XRP, Cardano, and more, allowing for a diversified exposure.
• Over-the-Counter Trading: BITW is traded over the counter, making it accessible to a broader range of investors. It initially launched in December 2020 and has grown its assets significantly despite market fluctuations.

Considerations

• Expense Ratio: The fund has an expense ratio of 2.5%, which covers management fees and other expenses. While this is on the higher side, it includes various costs like custody charges and administrative fees.
• Investment Structure: Originally, BITW was available to accredited investors through private placement, but it now trades publicly, eliminating the need for a holding period.

Investing in the Bitwise 10 Crypto Index Fund provides a balanced approach to accessing the cryptocurrency market, offering both diversity and significant exposure to leading digital assets.

For those looking to diversify their portfolio with a mix of top cryptocurrencies, the Bitwise 10 Crypto Index Fund might be an ideal choice. It simplifies the complexities of crypto investments by bundling them into a single, easy-to-manage fund.

12. Invesco Alerian Galaxy Crypto Economy ETF

The Invesco Alerian Galaxy Crypto Economy ETF is designed to give investors exposure to the ever-evolving cryptocurrency ecosystem. This fund primarily focuses on stocks that are aligned with the cryptocurrency economy theme, making it an intriguing option for those looking to tap into this burgeoning sector.

Key Features of the ETF:

• Diverse Portfolio: The ETF includes a variety of companies that are involved in the blockchain and crypto industry, providing a broad exposure to the sector.
• Strategic Investments: It targets firms that are actively participating in the digital asset space, ensuring that investors are linked to the latest developments and innovations.
• Growth Potential: With the cryptocurrency market continuing to expand, this ETF offers a potential growth opportunity for investors willing to embrace the volatility of the sector.

Investing in cryptocurrency-related assets can be a wild ride, but with the right ETF, it might just feel like a smoother journey. The Invesco Alerian Galaxy Crypto Economy ETF is one such option that aims to make the ride worthwhile by aligning with the dynamic shifts in the crypto landscape.

In a world where digital currencies are gaining traction, this ETF stands out by offering a strategic way to engage with the crypto economy without directly buying cryptocurrencies. It’s a chance to be part of the digital revolution while managing risk through a diversified investment approach.

13. Simplify US Equity Plus Bitcoin ETF

The Simplify US Equity Plus Bitcoin ETF is a unique investment vehicle that blends traditional U.S. equity exposure with the modern appeal of Bitcoin. This ETF is designed to provide investors with the dual benefits of participating in the U.S. stock market while also gaining exposure to the leading cryptocurrency, Bitcoin.

Key Features

• Dual Exposure: The ETF combines investments in U.S. equities with Bitcoin, offering a balanced approach for diversified portfolio growth.
• Managed Risk: Through strategic management, the ETF aims to mitigate the volatility often associated with cryptocurrency investments.
• Growth Potential: By including Bitcoin, the ETF taps into the potential upside of cryptocurrency markets while maintaining a stable base through U.S. equities.

Investment Strategy

The fund focuses on investing in equity securities of U.S. companies using exchange-traded futures contracts and ETFs, aiming to provide exposure to the U.S. equity market. This strategy allows for capitalizing on the growth opportunities in both traditional and digital assets.

Performance Insights

By integrating Bitcoin into a traditional equity fund, investors can enjoy a broader market exposure without the need to manage separate investments. This ETF is a compelling choice for those looking to blend the old with the new in the investment world.

14. First Trust SkyBridge Crypto Industry and Digital Economy ETF

The First Trust SkyBridge Crypto Industry and Digital Economy ETF, often referred to by its ticker symbol CRPT, is a unique financial product targeting the booming world of digital assets. This ETF primarily invests in companies that are heavily involved in the crypto industry and the broader digital economy, making it an attractive option for investors looking to tap into these sectors.

Key Features of the ETF:

• Focused Investment Strategy: The ETF is designed to capture the growth potential of the crypto economy by investing in companies that are generating significant revenue from digital asset projects.
• Sector Allocation: The fund’s investments are spread across various sectors, with a strong emphasis on technology and financial services, which are crucial for the development and support of blockchain and digital currencies.
• Global Exposure: Though it focuses predominantly on U.S.-based companies, the ETF also includes firms from other leading markets, providing a diversified geographical exposure.

Investment Approach

The First Trust SkyBridge ETF follows a rigorous selection process to ensure it includes companies that are not just dabbling in digital assets but are deeply entrenched in the industry. The selection criteria include:

1. Revenue Generation: Companies must generate at least 50% of their revenue from digital asset-related projects to be considered for inclusion.
2. Market Cap Requirements: Only firms with a substantial market cap are included, ensuring stability and reducing volatility for investors.
3. Regular Rebalancing: The ETF is rebalanced semi-annually to reflect changes in the market and maintain its focus on high-performing digital asset companies.

Investing in the First Trust SkyBridge Crypto Industry and Digital Economy ETF offers a way to engage with the evolving landscape of digital finance without directly holding cryptocurrencies. This ETF provides a balanced approach, combining the potential for high returns with the relative safety of equity investments.

With its strategic focus and disciplined investment methodology, the First Trust SkyBridge ETF stands out as a robust option for those looking to capitalize on the digital economy’s growth potential.

15. VanEck Bitcoin Strategy ETF

The VanEck Bitcoin Strategy ETF is an intriguing option for those looking to invest in the ever-evolving world of cryptocurrency. This ETF is not just about holding Bitcoin directly; instead, it focuses on Bitcoin futures contracts. This approach allows investors to gain exposure to Bitcoin’s price movements without needing to manage the complexities of owning the cryptocurrency itself.

Here’s a quick breakdown of what makes the VanEck Bitcoin Strategy ETF stand out:

• Investment Focus: Primarily on Bitcoin futures, which can offer a different risk profile compared to direct Bitcoin investments.
• Expense Ratio: Relatively competitive, making it an accessible choice for investors looking to keep costs in check.
• Market Accessibility: Listed on major exchanges, providing easy access for traders and investors.

For those who are cautious about diving directly into the volatile waters of cryptocurrency, the VanEck Bitcoin Strategy ETF offers a more structured way to participate in the market. It combines the potential of Bitcoin’s growth with the regulatory framework of traditional ETFs, offering a balanced approach to crypto investment.

In summary, while the VanEck Bitcoin Strategy ETF might not be for everyone, it presents a viable option for both seasoned investors and newcomers interested in the crypto space. As always, it’s crucial to consider your risk tolerance and investment goals before diving in.

16. ProShares Short Bitcoin Strategy ETF

The ProShares Short Bitcoin Strategy ETF, commonly known as BITI, is a unique investment tool designed for those looking to take a bearish stance on Bitcoin. This ETF aims to achieve the inverse of the daily performance of the Bloomberg Bitcoin Index, minus fees and expenses. It’s a strategic choice for investors who anticipate a decline in Bitcoin’s value.

Key Features

• Inverse Performance: BITI is structured to move in the opposite direction of Bitcoin’s daily price changes. If Bitcoin’s value drops, this ETF’s value is likely to rise.
• Risk Management: This ETF can serve as a hedge against Bitcoin’s volatility, offering a way to potentially profit from downturns.
• Short-Term Focus: Due to its daily resetting feature, BITI is most effective for short-term strategies rather than long-term holds.

Performance Insights

Here’s a quick look at some of the recent performance metrics:

“Investing in BITI requires a clear understanding of market conditions and a willingness to embrace the risks associated with inverse ETFs.”

Investors should note that while BITI can be a powerful tool for those with a bearish outlook, it is not without its risks. The fund aims to achieve daily results that are the inverse of the Bloomberg Bitcoin Index, making it a potentially volatile choice for those unprepared for rapid market shifts.

17. Direxion Daily Bitcoin Bear 1X Shares

The Direxion Daily Bitcoin Bear 1X Shares is an exchange-traded fund (ETF) designed for those who want to bet against the rise of Bitcoin. This fund aims to provide the inverse of Bitcoin’s daily performance, meaning if Bitcoin’s price drops, this ETF should ideally increase in value.

Why consider this ETF?

1. Hedging Strategy: It’s a useful tool for investors looking to hedge their Bitcoin holdings against potential declines.
2. Speculative Play: For those who believe Bitcoin’s price will fall, this ETF offers a way to potentially profit from that belief.
3. Short-Term Focus: It’s designed primarily for short-term trading and not for long-term holding due to the daily reset of its leverage.

Keep in mind, investing in inverse ETFs like this one involves significant risk, especially given the volatile nature of Bitcoin. It’s not uncommon to see large swings in value, which can be both an opportunity and a danger.

This ETF is part of a suite of leveraged and inverse ETFs offered by Direxion, which also includes the Direxion Daily GOOGL Bull 2X Shares. As with any investment, careful consideration and understanding of the product are crucial before diving in.

18. Amplify Transformational Data Sharing ETF

The Amplify Transformational Data Sharing ETF, often referred to by its ticker symbol BLOK, is a standout in the world of cryptocurrency ETFs. BLOK is actively managed, aiming to invest at least 80% of its assets in companies that are pushing the boundaries of blockchain technology. With assets under management totaling $733.9 million and an expense ratio of 0.76%, it’s a significant player in this space.

BLOK’s portfolio is diverse, currently holding 52 different companies. The top 10 holdings make up about 38% of the fund’s assets, showcasing a strategic focus on key industry players. Notably, Core Scientific, a leader in digital asset mining services, holds the top spot with a 6% share. MicroStrategy, known for its aggressive Bitcoin investments, follows closely with a 5% share.

Key Holdings

• Core Scientific (CORZ): Leading the pack with a 6% stake, this company is pivotal in digital asset mining.
• MicroStrategy (MSTR): Known for its substantial Bitcoin holdings, it represents about 5% of the fund.
• Galaxy Digital (BRPHF): A financial services firm focused on crypto, part of the top holdings.
• Coinbase Global (COIN): As one of the largest crypto exchanges, it plays a crucial role in the ETF.

Beyond the top 10, BLOK also invests in giants like IBM and Nvidia, indicating a broad approach to tech investments.

The Amplify Transformational Data Sharing ETF offers a unique opportunity for investors looking to capitalize on the growth of blockchain technologies. Its diverse holdings and active management make it a compelling choice for those interested in the digital economy.

For more detailed information on BLOK, including current stock price charts and historical data, investors can explore further insights into its performance and potential.

19. Bitwise Crypto Industry Innovators ETF

The Bitwise Crypto Industry Innovators ETF is a standout choice for those looking to dive into the world of crypto without directly buying digital coins. This ETF provides exposure to companies that are leading the charge in the cryptocurrency and blockchain sectors.

Key Features

• Diverse Holdings: The fund includes a variety of companies involved in the crypto ecosystem, from mining operations to blockchain technology firms.
• Market Cap Focus: Only companies with a minimum market cap of $300 million are considered, ensuring a focus on well-established entities.
• Thematic Beta: Each company’s thematic beta is calculated to determine its weight in the fund, ensuring a balanced portfolio.

Portfolio Composition

The ETF is heavily weighted towards the U.S., with 72% of its holdings based in the country. Canada and Australia follow with 10% and 7%, respectively. The top 10 holdings, including notable companies like MicroStrategy and Coinbase Global, account for 57% of the total portfolio.

Investment Strategy

This fund primarily targets firms that are expected to benefit from the growth of the crypto industry. It aims to capture the potential upside of the crypto market without the direct volatility of holding cryptocurrencies themselves.

The Bitwise Crypto Industry Innovators ETF offers a unique way to invest in the burgeoning crypto market, providing a diversified approach that mitigates some of the risks associated with direct crypto investment.

For those interested in a mix of innovation and stability, this ETF might just be the right fit for your investment portfolio. Explore more about the fund’s yield and expense ratio to understand its financial structure better.

20. Invesco Elwood Global Blockchain ETF

The Invesco Elwood Global Blockchain ETF is a unique investment vehicle for those looking to tap into the blockchain sector. It offers exposure to companies that are deeply involved in the blockchain technology space. This ETF focuses on firms that are actively participating in the blockchain revolution, either by developing, using, or exploring blockchain technologies.

Key Features

• Global Exposure: This ETF includes companies from various countries, allowing investors to gain a diversified exposure to the global blockchain industry.
• Diverse Holdings: It does not limit itself to a single aspect of blockchain but rather includes a variety of companies from different sectors such as technology, finance, and more.
• Innovative Companies: The ETF invests in firms that are not just riding the blockchain wave but are also at the forefront of innovation and development in this field.

Investment Strategy

1. Selection Process: The ETF selects companies that are significantly involved in blockchain technology, ensuring that at least 50% of their revenue is derived from blockchain-related activities.
2. Market Cap Consideration: It includes a mix of large, mid, and small-cap stocks, providing a balanced approach to investing in blockchain.
3. Revenue Focus: Companies in the portfolio are chosen based on their revenue potential from blockchain projects, making it a strategic choice for future growth.

Investing in the Invesco Elwood Global Blockchain ETF is not just about capitalizing on a trend; it’s about participating in the future of technology and finance. This ETF offers a window into the innovative world of blockchain, making it a compelling option for forward-thinking investors.

21. First Trust Indxx Innovative Transaction & Process ETF

The First Trust Indxx Innovative Transaction & Process ETF, often referred to by its ticker symbol LEGR, is a unique player in the world of cryptocurrency exchange-traded funds. This ETF is designed to mirror the performance of the Indxx Blockchain Index, focusing on companies that are deeply involved with blockchain technology.

Key Features

• Assets Under Management: The fund manages a substantial $105.6 million, making it a significant option for investors looking to gain exposure to blockchain technology.
• Expense Ratio: With an expense ratio of 0.65%, investors can enjoy a relatively low-cost entry into the blockchain sector.
• Inception Date: LEGR was launched in January 2018, positioning itself early in the blockchain investment space.

Investment Strategy

The ETF’s strategy involves a meticulous selection process, starting with a global pool of equities from both developed and emerging markets. It weeds out stocks with market caps below $250 million and those with insufficient trading volumes. The focus narrows further by excluding companies not actively engaged in blockchain technology.

• Scoring System: Companies are scored based on their involvement in blockchain technology:
  1. Actively developing
  2. Actively using
  3. Actively exploring

Only those scoring 1 or 2 are included in the index, ensuring a focus on those at the forefront of blockchain advancements.

Portfolio Composition

The portfolio is capped at 100 stocks, with a biannual rebalancing to maintain its strategic focus. LEGR’s top sectors include:

• Financials (40%)
• Technology (27%)
• Consumer Discretionary (10%)

Additionally, the top countries represented are the United States (38%), China (13%), and Germany (8%).

Notable Holdings

Among its top holdings are prominent companies like Intel (INTC) and Salesforce (CRM), reflecting its large-cap focus. This emphasis on well-established firms provides a stable foundation for investors.

LEGR offers a way to invest in the rapidly evolving blockchain space, balancing innovation with the stability of large-cap stocks.

For those interested in a fund that aligns with the performance and yield of the Indxx Blockchain Index, LEGR presents a compelling opportunity. With its strategic focus and disciplined approach, it remains a noteworthy option for those keen on blockchain investments.

22. Global X Blockchain & Bitcoin Strategy ETF

The Global X Blockchain & Bitcoin Strategy ETF is an interesting choice for those looking to get into the world of blockchain and cryptocurrencies without directly holding any digital currencies. This ETF focuses on investing in companies that are deeply involved in blockchain technology and the broader cryptocurrency ecosystem.

Key Features

• Investment Strategy: The ETF primarily targets blockchain technology firms and companies that are part of the cryptocurrency sector. It does not directly invest in cryptocurrencies or their derivatives, which means it provides exposure to the industry without the volatility of holding the digital assets themselves.
• Top Holdings: Some major names in this ETF’s portfolio include Coinbase Global Inc., a leading cryptocurrency exchange, and Hut 8 Corp., a prominent Bitcoin mining company.
• Expense Ratio: The ETF charges a reasonable fee, making it a cost-effective option for investors interested in blockchain technology and cryptocurrency markets.

Benefits

1. Diversification: Offers a diversified approach by investing in a range of companies within the blockchain and cryptocurrency sectors.
2. Lower Risk: By not holding actual cryptocurrencies, it reduces the risk associated with direct cryptocurrency investments.
3. Growth Potential: With the increasing adoption of blockchain technology, the companies in this ETF are positioned for potential growth.

Investing in blockchain and cryptocurrency-focused companies allows you to tap into the potential of these technologies without the direct exposure to the cryptocurrencies themselves. This approach can be appealing for those cautious about the high volatility typically associated with the crypto market.

In summary, the Global X Blockchain & Bitcoin Strategy ETF provides an accessible entry point for investors interested in the growth of blockchain and cryptocurrency sectors without the need to directly manage digital currencies. For those looking to explore this space, this ETF can be a notable addition to their portfolio, balancing risk and opportunity effectively. Explore more about this ETF as it invests in equity securities from both US and non-US markets.

23. Defiance Next Gen Connectivity ETF

The Defiance Next Gen Connectivity ETF is an intriguing option for those looking to invest in the rapidly growing field of connectivity technologies. This ETF is designed to capture the potential of the next generation of connectivity solutions, including 5G and beyond.

• Current Price: As of October 18, 2024, the ETF is priced at $41.77, reflecting a stable position in the market.
• Key Focus Areas:
  1. 5G Technology
  2. Internet of Things (IoT)
  3. Advanced Connectivity Infrastructure

This ETF aims to provide investors with exposure to companies that are at the forefront of connectivity innovations. It’s a great way to tap into the future of how devices and networks will interact.

Investing in this ETF could be a smart move for those who believe in the transformative power of connectivity technologies. It offers a diversified approach to investing in sectors that are expected to grow significantly in the coming years.

With a focus on cutting-edge technologies, the Defiance 5G Next Gen Connectivity ETF stands out as a forward-thinking investment choice. It targets companies that are not just participating in the connectivity revolution but leading it. This ETF’s strategy is to align with the tech advancements that are shaping the modern world, making it a compelling option for tech-savvy investors.

24. Roundhill Ball Metaverse ETF

The Roundhill Ball Metaverse ETF is a unique investment vehicle that aims to capture the growth potential of the metaverse. This ETF is designed to track the performance of the Ball Metaverse Index, which is an innovative index focused on companies that are actively shaping the metaverse landscape.

Why consider this ETF? The metaverse is rapidly evolving, blending virtual reality, augmented reality, and the internet into a new digital frontier. Investing in this ETF allows you to potentially benefit from the growth of this emerging space without directly investing in individual tech stocks.

Key Features:

• Diverse Exposure: The ETF includes a wide range of companies involved in the metaverse, from gaming to virtual reality.
• Growth Potential: Positioned to capitalize on the increasing investment in virtual worlds and digital environments.
• Managed Risk: By holding a basket of stocks, this ETF reduces the risk associated with investing in individual companies.

The metaverse isn’t just a buzzword; it’s a transformative digital ecosystem that offers countless opportunities for innovation and investment. With the Roundhill Ball Metaverse ETF, you can be part of this exciting journey.

In summary, the Roundhill Ball Metaverse ETF provides a strategic way to invest in the future of digital interaction and connectivity. It’s a compelling option for those looking to diversify their portfolios with a focus on cutting-edge technology and innovation.

25. And More

So, you’ve gone through the big names, but what’s next? There’s a whole world of cryptocurrency ETFs beyond the top 24. These options might not be as mainstream, but they offer unique opportunities for those willing to explore.

Emerging ETFs

• Bitwise DeFi Crypto Index Fund: This ETF delves into decentralized finance, a rapidly growing sector within the crypto world.
• Fidelity Crypto Industry and Digital Payments ETF: Focuses on companies involved in blockchain and digital payments.
• ARK Next Generation Internet ETF: While not purely a crypto ETF, it invests in blockchain technology as part of its broader strategy.

Niche Focus

Some ETFs target specific aspects of the cryptocurrency market, such as:

1. Sustainable Crypto ETFs: These focus on environmentally friendly blockchain technologies.
2. Regional Crypto ETFs: Targeting specific geographical areas, these ETFs might focus on Asian or European blockchain companies.
3. Sector-Specific ETFs: Concentrate on particular segments like crypto mining or blockchain infrastructure.

Considerations

When looking at these lesser-known ETFs, keep in mind:

• Volatility: Cryptocurrencies are notorious for their price swings. These ETFs are no different, so be prepared for some roller-coaster rides.
• Fees: Check the expense ratios. Some niche ETFs might have higher fees due to their specialized focus.
• Liquidity: Not all ETFs have the same level of trading volume, which can impact buying and selling.

“Exploring beyond the well-trodden path of mainstream ETFs can be rewarding, but it requires careful consideration and a willingness to embrace risk.”

In summary, the world of cryptocurrency ETFs is vast and varied. While the top names are a great starting point, diving into lesser-known options can uncover hidden gems that align with your investment strategy.

Wrapping Up: The Future of Crypto ETFs

So, there you have it. The world of cryptocurrency ETFs is growing, and it’s opening doors for all kinds of investors. Whether you’re a seasoned pro or just starting out, these funds offer a way to get into the crypto game without the hassle of managing digital coins yourself. Sure, there are some downsides, like limited trading hours and the need to convert to cash when you want to cash out. But for many, the benefits outweigh the drawbacks. As the market continues to evolve, who knows what new opportunities will pop up? Keep an eye on the trends, and you might just find the perfect ETF to fit your investment strategy. It’s an exciting time to be part of the crypto world, and ETFs are making it more accessible than ever.

Frequently Asked Questions

What is a cryptocurrency ETF?

A cryptocurrency ETF is a type of investment fund that lets you invest in digital currencies like Bitcoin and Ethereum without having to buy them directly. Think of it like a basket of digital coins you can buy and sell like a stock.

How do cryptocurrency ETFs work?

Cryptocurrency ETFs track the prices of digital currencies. When you buy a share of the ETF, you’re getting a piece of that basket of cryptocurrencies. It’s a way to invest in crypto without needing a digital wallet.

Are cryptocurrency ETFs safe investments?

Like all investments, cryptocurrency ETFs come with risks. The value can go up and down, sometimes a lot. It’s important to do your homework and maybe talk to a financial advisor before investing.

How can I buy a cryptocurrency ETF?

You can buy cryptocurrency ETFs through most online brokerage accounts, just like you would buy stocks. You don’t need a special account or digital wallet to invest in them.

Do I need to pay taxes on cryptocurrency ETFs?

Yes, you might need to pay taxes on any profits you make from selling cryptocurrency ETFs. It’s a good idea to check with a tax professional to understand what you owe.

Why should I consider investing in a cryptocurrency ETF?

Investing in a cryptocurrency ETF can be a way to get into the crypto market without the hassle of buying and storing digital coins. It can also help diversify your investment portfolio.