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What Are the Best Crypto ETFs?

For those who are looking into diversifying their crypto investments, crypto ETFs may be a great option for you. Crypto ETFs are similar to traditional ETFs, but instead of traditional assets they utilize cryptocurrencies.

In this article we recommend the 5 best crypto ETFs to satisfy and accommodate everyone’s investment needs.

Quicklook: Best Crypto ETF

  1. First Trust Indxx Innovative Transaction & Process ETF: Best for Diversification Amongst Blockchain Companies
  2. Amplify Transformational Data Sharing ETF: Best for Diversification with Bitcoin
  3. ProShares Bitcoin Strategy ETF: Best for High Growth Potential 
  4. Siren Nasdaq NexGen Economy ETF: Best for Global Investments
  5. Grayscale Bitcoin Trust: Best for Bitcoin Investment

Table of Contents:

5 Best Crypto ETFs

Prior to investing in crypto ETFs, one should know their options and investment opportunities. In this article we outline some of our top recommendations for crypto ETFs.

First Trust Indxx Transaction & Process ETF

This equity-based crypto ETF has been out since 2018 on the stock exchange and continues to grow. How this ETF tracks its performance is through the Indxx Blockchain Index which weights and tracks companies who obtain blockchain tech. This fund invests into companies through a three-tier system dictating how the company utilizes blockchain technology. 

AUM: $135.3 mil

Expense Ratio: 0.65%

Dividend: $0.36 per share

Trade Volume: roughly 3,527 shares per day

52 Week Low / High: Low of $18.85 and high of $38.09

Notable Companies: Baidu Inc., Micron Technologies, and Advanced Micro Devices

Amplify Transformational Data Sharing ETF

Unlike other ETFs, Amplify Transformational Data Sharing ETF does not track an index fund. It has 47 holdings, where the top 10 holdings own 45% of the ETF’s assets. In addition, Amplify invests at least 80% of its assets into companies that are actively involved with blockchain technology. Notably, Amplify invests into Purpose Bitcoin ETF and 3iQ CoinShares Bitcoin ETF. 

AUM: $1.15 bil

Expense Ratio: 0.71%

Dividend: $0.385 per share

Trade Volume: roughly 270,526 shares per day

52 Week Low / High: Low of $24.53 and high of $62.94

Notable Companies: Silvergate Capital Corp, MicroStrategy Incorporated, and HIVE Blockchain Technologies

ProShares Bitcoin Strategy ETF 

Launched on October 19th 2021, ProShares Bitcoin Strategy ETF is the first ETF in the US to include Bitcoin futures. It is important to note, that ProShares does not directly invest into Bitcoin but, it gives retail investors an opportunity to profit off of Bitcoin’s success.  These futures contracts are short-term to maturity and these contracts are regulated by the Commodity Futures Trading Commission.  

AUM: N/A

Expense Ratio: 0.95%

Dividend: N/A

Trade Volume: N/A

52 Week Low / High: N/A

Notable Companies: Bitcoin

Siren Nasdaq NexGen Economy ETF

This ETF has been launched since 2018 and has 63 holdings. Additionally, this ETF does follow the performance of an index (the Nasdaq Blockchain Economy Index). This fund is diversified into various global markets, their three largest markets the ETF invests in is the U.S. (53%), Japan (13%) and China (13%). Additionally, it is pretty diversified with its assets considering its top 10 holdings only account for 20% of its assets. 

AUM: $188 mil

Expense Ratio: 0.68%

Dividend: $0.31 per share

Trade Volume: Roughly 69,473 shares per day

52 Week Low / High: Low of $17.55 and high of $41.68

Notable Companies: Galaxy Digital Holdings Ltd., Baidu Inc., and Micron Technologies

Grayscale Bitcoin Trust

Unlike other ETFs mentioned, Grayscale Bitcoin Trust is a closed-end grantor trust. Each share of Grayscale represents a portion of Bitcoins which fluctuates from .0009 coins. Due to this trust’s structure, it can trade at roughly a 14% discount on the Bitcoins the trust holds. The trust additionally invests more than $36 billion into cryptocurrencies, where Bitcoin tends to be the majority. 

AUM: $36.1 bil

Expense Ratio: 2.0%

Dividend: N/A

Trade Volume: Average trade volume of 6,864,361

52 Week Low / High: Low of $13.09 to a high of $58.22

Notable Companies: Bitcoin

Is Trading Crypto ETFs Safe?

Yes, trading crypto ETFs is safe since ETFs are highly regulated. Meaning, that the regulators of the ETF regularly monitor and protect against potential price manipulation within this market.

However, there are risks for any investments. Since crypto is a highly volatile market, although it may be safe it is a risky market to invest in and is not suggested for those who tend to be more risk-averse. 

What to Look for With Crypto ETFs

There are five factors investors should look into when wanting to invest in a crypto ETF. This includes: assets under management, expense ratio, price to earnings ratio, company holdings, and dividend yields. 

Assets Under Management (AUM)

In short, AUM is the value of investments an entity or individual manages for their clientele. This is a great tool for investors to use to see the size of the company’s operations and investments and how their AUM compares to its competitors. Lastly, this number showcases how successful the ETF is. 

Expense Ratio

An expense ratio is the product of annual expenses per share divided by the NAV per share. In short, this ratio tells the investor how the management or operational fees have an impact on the ETFs overall profitability. In addition, it allows investors to clearly dictate which ETF would be a better option for their investment needs. 

Price to Earnings (P/E Ratio)

This profitability ratio tells the investors the value of the company’s shares in comparison to the company’s earnings. It is a great indicator to see whether a company’s stock is over or undervalued. It is frequently used amongst investors to dictate the value of the stock or index.

Company Holdings

This factor is especially important when it comes to ETFs. Essentially, holdings are a wide range of investment products that make up the portfolio. These holdings can include various entities and security types. 

Dividend Yield

A dividend yield is a ratio that computes the percentage of a company’s share price that the company pays in dividends annually. A high yield is sought after since it gives investors more return, however it is not always a good thing. This is because these additional profits could be reallocated into investing more into the company. 

Benefits of Investing in Crypto ETFs

There are a wide variety of benefits when it comes to investing into crypto ETFs. This includes:

  • Diversification: ETFs eliminate some risk off of their investments due to diversification and allocation of its funds into various companies and/or sectors
  • Passive Management: ETFs take the stress off of investors to be consistently active
  • Security: Since ETFs are regulated there is a high level of security that comes along with it 
  • High Return Potential: Crypto is highly volatile which allows room for high returns. Since Crypto ETFs are highly diversified this allows investors to have high return potential.

Best Apps to Invest in Crypto ETFs

Unsure where to start investing in these Crypto ETFs? Here we recommend our top 5 picks for Crypto ETF platforms:

  • eToro: 0% commission fee on ETFs, multi-asset platform, and have a community over 20 million users
  • Coinbase: Specifically made for trading cryptocurrencies, a digital wallet for retail investors, and offers more than 50 cryptocurrencies to trade from
  • E*Trade: Offers more than 100 technical studies and scans for potential trades, risk-reward analysis, and streaming quotes with market details
  • Webull: Commission free trading, free real-time quotes, and 24/7 customer support
  • Robinhood: Free ETF and crypto trades, $0 account minimum, and is highly recommended for novice investors

Is Investing in a Crypto ETF Right for You?

After analyzing these crypto ETFs, you can see which one best aligns with your investment needs. When it comes to investing in these ETFs keep in mind the five factors (AUM, P/E, Dividend Yield, Company Holdings, and Expense Ratio) to guide you on which one will be best suited for you.

Before investing, speak with your financial advisor if investing in crypto ETFs is right for you. Learn more here about where to get a financial advisor.

Frequently Asked Questions

What is the largest cryptocurrency ETF?

One of the large cryptocurrency ETF’s is Amplify Transformational Data Sharing ETF. However, other crypto ETF’s are close in Amplify’s ETF size. 

Is it a good time to buy crypto?

Yes, cryptocurrency is a great investment. As technology advances, the conversation surrounding fintech and cryptocurrency increases. This is a great time to invest into crypto due to the historical high returns the market has been able to generate.

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