8 Top Cryptocurrency ETFs That You Should Consider

If you’re an investor seeking a diversified portfolio, exchange-traded funds are the way to go. However, when it comes to cryptocurrencies like Bitcoin and Ethereum, there weren’t initially a lot of good options. But as these digital assets have gained mainstream acceptance, you’re able to find a lot of crypto ETFs to choose from. Which ones are considered to be the best? We have compiled a list of 8 ETFs that can help grow your wealth. Just be aware that they typically charge high management fees.

Grayscale Bitcoin Trust (GBTC)

As crypto funds, Grayscale Bitcoin Trust was the pioneer, having launched all the way back in 2013 when few people knew what cryptocurrencies were. GBTC holds actual Bitcoin, which is something that differentiates it from ETFs. With a whopping $24 billion in assets, GBTC is by far the largest crypto fund and possesses a high degree of liquidity. GBTC intends to convert into an ETF once the SEC gives the green light to cryptocurrency spot ETFs that directly track the prices of cryptos.

ProShares Bitcoin Strategy ETF (ticker: BITO)

The ProShares Bitcoin Strategy ETF (BITO) set the standard that all other ETFs strive to follow. In October 2021, BITO became the first-ever crypto ETF to be permitted by the SEC to trade on a major U.S exchange. For folks who had been investing in Bitcoin for a while, this was a dream come true. In essence, it meant U.S. regulators were giving their seal of approval. Here’s how BITO works: rather than purchasing Bitcoin itself, this ETF involves holding Bitcoin futures contracts. At the moment, BITO manages around $1 billion in assets.

VanEck Bitcoin Strategy ETF (XBTF)

Another good fund that focuses exclusively on Bitcoin is the VanEck Bitcoin Strategy ETF. Listed on the Chicago Mercantile Exchange, XBTF was launched on November 15, 2021. It only has $22 million worth of assets under management, but on the other hand, it has a 0.65% expense ratio, the lowest on the market, which makes it an appealing option. Eventually, VanEck hopes to become a Bitcoin spot ETF, but at the moment it hasn’t gotten approval from the SEC due to concerns over potential market manipulation and fraud.

Grayscale Ethereum Trust (ETHE)

Anybody who has a vague understanding of crypto is familiar with Bitcoin, but Ethereum is another digital currency that has had a great deal of success. As a result, investors prefer to put money into both. This is where the Grayscale Ethereum Trust comes in. It shares all of the characteristics of GBTC, but with the second-leading cryptocurrency in terms of market share. Much like GBTC, Grayscale plans to transform ETHE to an ETF if everything goes as planned. Currently, ETHE possesses $8.5 billion in digital assets.

Bitwise 10 Crypto Index Fund (BITW)

Although the most popular ETFs at the moment focus primarily on the leading cryptocurrencies Bitcoin and Ethereum, the Bitwise 10 Crypto Index Fund offers more diversity by holding the 10 most valuable cryptos by market share. These funds are managed through a highly sophisticated process that takes into consideration risk and market cap. Along with Bitcoin and Ethereum, the fund holds altcoins such as Cosmos and Litecoin. BITW holds more than $760 million in assets.

Valkyrie Bitcoin Strategy ETF (BTF)

Although BITO won the battle when it became the first crypto fund to be listed on the NYSE, Valkyrie Bitcoin Strategy ETF (BTF) hopes to eventually win the war. A few days after the big BITO announcement, BTF promptly began trading on the Nasdaq. And much like BITO, BTF holds Bitcoin futures rather than investing in the cryptocurrency itself. Valkyrie also offers trusts for other cryptos on international markets, although none are currently available in the U.S. With $36.5 million in assets, BTF is significantly smaller than BITO.

Global X Blockchain & Bitcoin Strategy ETF (BITS)

Launched on November 16, 2021, Global X Blockchain & Bitcoin Strategy ETF is yet another fund that focuses on Bitcoin futures contracts. On the other hand, what sets BITS apart from the rest is that roughly half of the fund’s holdings are in its blockchain side, which includes several firms that are thriving as a result of emerging blockchain technologies. Perhaps the most notable of these companies is Coinbase, which is the world’s most popular cryptocurrency exchange platform. The reason this is important is because it offers a far more diversified portfolio versus simply investing in Bitcoin future funds alone. Right now it only holds $6.2 million in assets, but the potential for growth is great.

Valkyrie Balance Sheet Opportunities ETF (VBB)

The Valkyrie Balance Sheet Opportunities ETF (VBB) is the most recent fund to be launched, doing so on December 14, 2021. The expensive ratio of 0.75% is among the best, although with less than a $1 million in assets it has a lot of growing to do. This ETF stands out from the pack because rather than investing in Bitcoin or Bitcoin futures directly, it chose 20 publicly owned companies that hold Bitcoin themselves. As a result, the stock prices of these firms are strongly linked to crypto prices. Tesla Inc., is perhaps the most well-known of these companies.