Table of Contents
Introduction
This article lists 16 best crypto ETFs that are available for trading in the US and Canadian markets. As the virtual assets market is very volatile, you just do your own due diligence before purchasing any of them. Investing without doing a detailed research and analysis can put a hole in your pocket.
What is a Crypto ETF?
ETFs stand for Exchange Traded Funds, i.e. the funds that trade on the stock market (exchanges) and track the performance of an index or an underlying asset. They are like a basket that has different securities and can be traded on an exchange like a stock. Likewise, crypto ETFs track the performance of underlying cryptocurrencies without investing directly in them.
What Are The Reasons to Buy Them?
There are several reasons that you will find such an Exchange Traded Fund worth investing in.
- It is a convenient way to invest in the cryptocurrency market and can save you from the hassles of dealing with these digital currencies directly. This way, you do not need to trade in them on your own; a blockchain Exchange Traded Fund will do that for you! This way, you get exposure to major virtual currencies without directly investing in them. How cool is that!
- By investing in them, you can get exposure to the underlying blockchain companies that do continuous research and analysis to select the best assets to be included in an Exchange Traded Fund.
- Investing in these assets reduces the risks associated with custody; here again, the companies providing them come to the investors’ rescue and prevent the associated risk of self-custodianship.
Where to Buy Them?
If you already have a brokerage account, you can easily buy funds via it. If you do not have one, you will need to open it. The fund continually tracks the assets that it is made up of and your investment shall vary according to the volatility of these assets. eToro, Coinbase, Interactive Brokers, Robinhood, HYCM, Caleb & Brown, and Coinmama are a few brokerage houses that let you buy funds with ease.
Best Crypto ETFs Worth Looking At in 2024
Note: In January 2024,, 11 Spot Bitcoin Crypto ETFs (that track price of BTC) from Blackrock, ARK, Invesco, Bitwise, Franklin, Grayscale, Fidelity, and many others have been given regulatory approval from Securities Exchange Commission (SEC). Now, you can trade them.
1. BLOK
BLOK is an Amplify Transformational Data Sharing Fund and can be your choice if you intend to purchase the best cryptocurrency ETFs in the market. (This is not the only one though!). BLOK was the first US blockchain Exchange Traded Fund. It is an actively-managed fund (a manager is sitting behind the desk and is responsible for making all the decisions related to the allocation of assets to the fund). It invests at least 10% of its assets in companies that strive towards the development of blockchain technology. Blok has well-defined criteria for selecting such companies. It selects those publically traded companies that:
- Are into blockchain R&D and actively implement their search results.
- Are profitable from the demand that comes from utilizing blockchain application.
After sorting out such companies, the next step is to shortlist those that derive a significant portion of their profits from blockchain and those that invest directly or are partnered with other blockchain companies. The next step is to analyze the fundamentals of the companies selected and make a final list of the companies that BLOK would make part of these digital funds.
The top holdings of BLOK are Microstrategy Inc, GMO Internet Group, Riot Platforms Inc, Galaxy Digital Holdings Ltd, and Coinbase Global Inc. ( in order of the % allocated). The top blockchain industry allocation is for transactional (25%), followed by Miner (20%). BLOK fund has a maximum percentage of small-cap companies (44.07%), followed by 37.25 % of large-cap and then the mid-cap (18.68%) companies.
2. Valkyrie Bitcoin Miners (WGMI)
Another actively managed fund that can be a part of your best crypto ETFs list is WGMI. It came into existence in 2022 and has managed to give amazingly more than 90% returns from Feb (when it was incepted) till March 30. The fund gives exposure to Bitcoin.
The strategy for WGMI is to invest 80 % of its portfolio in assets of those companies that have at least 50 % of their profits originating from the mining of BTC or those that derive their profits from providing hardware and /or software used for bitcoin mining. This fund does not invest in BTC directly. The top holdings of WGMI are Marathon Digital Holdings Inc, Riot Platforms Inc, Cleanspark Inc, and HIVE Blockchain Technologies Ltd.
This video talks about the role of the renewable energy in WGMI:
3. Hashdex Bitcoin Futures (DEFI)
Based on HDEFI (Hashdex US Bitcoin Futures Fund Benchmark Index), DEFI gives its investor exposure to Bitcoin with all its decentralized features via Bitcoin future contracts. This fund does not invest in BTC directly but via future contracts. The top holdings are CME Bitcoin Fut Jun 23 (52.65%) and CME Bitcoin Fut May 23 (45.82%). This asset has given a good 63% YTD return.
4. First Trust Indxx Innovative Transaction & Process (LEGR)
First Trust tracks the price of the Indxx Blockchain Index, which tracks those companies that gain from the development, investment, or usage of blockchain; it tracks only those companies that have invested their resources towards using blockchain technology. The companies that this index tracks must fall into one of the three tiers that it has defined:
- Tier 1 or Active Enablers: This includes the companies that are creating products dedicated toward blockchain for their own use or for sale to other companies. Active Enablers also include companies that provide direct services for blockchain.
- Tier 2 or Active Users: These are the companies that are implementing blockchain supported by an Active Enabler company. It also tracks those who have any use cases related to blockchain development.
- Tier 3 or Active Explorers: Those that are exploring blockchain to be incorporated into their businesses.
The top holding companies of LEGR are Microsoft Corp, NVIDIA Corp, Intel Corp, and Micron Technology Inc. with the biggest percentage devoted to the financial sector followed by the technology sector.
5. Bitwise Crypto Industry Innovators (BITQ)
BITQ fund tracks these companies that are based on digital currencies and gain a majority of their returns from this technology. It is a traditional Exchange Traded Fund that gives you the benefit of investing in cryptocurrency-based stocks rather than crypto itself.
BITQ has its asset managers that use their expertise to find such companies. The top holdings of BITQ are MicroStrategy Inc Class A, Galaxy Digital Holdings Ltd, Northern Data AG, Riot Platforms Inc, and Coinbase Global Inc Ordinary Shares Class A.
6. Global X Blockchain (BKCH)
BKCH is a passively managed fund that tracks the price of the Solactive Blockchain Index. It lets its investors gain from the companies that have adopted blockchain technology use cases like mining, transactions, and blockchain hardware. The top holdings include Riot Platforms Inc, Block Inc Class A, Coinbase Global Inc Ordinary Shares, and Marathon Digital Holdings Inc.
BKCH selects its companies based on pre-determined criteria. This includes:
- Companies that have a market cap of $200 M.
- Over the last 6 months, the company must have an average traded volume of at least $2 M
- Must have traded on at least 90% of all trading days in the last six months.
- Listed in a developed or emerging market.
7. ProShares Bitcoin Strategy (BITO)
Launched in 2021, BITO is a top blockchain ETF that gives its investors exposure to bitcoin returns while providing transparency. BITO can be used as an alternative to traditional investments. As the fund can be traded on a brokerage platform, there is no need for investors to deal with the hassles associated with buying and selling on online exchanges.
According to the ProShare website, it is the “world’s largest and most actively traded fund ”. Its top holding (as of now) is into CME Bitcoin Fut Non-Equity Index 30 June 2023 BTCM3 Currency and CME Bitcoin Fut Non-Equity Index 26 May 2023 BTCK3 Currency. BITO boasts of being in the top cryptocurrency ETFs of the US in terms of average daily volume.
8. ProShares Short Bitcoin Strategy (BITI)
BITI is a blockchain fund that tracks S&P CME Bitcoin Futures Index by calculating the -1x performance of this index and then calculates investors’ returns. As the daily returns get compounded, holding for more than 1 day can result in returns that are very different from this fund’s target returns.
It tracks monthly future contracts of BTC that trade on CME and it is from this tracking, it calculates its performance results.
9. Grayscale Future of Finance (GFOF)
A product by GBTC (Grayscale Bitcoin Trust), GFOF is a fund that follows the benchmark index called CoinDesk Bitcoin Price Index. It allows exposure to companies that are centered around the digital and finance sectors. It is GBTC that holds BTC and issues shares to its investors.
A YouTube video by Grayscale on GFOF:
10. Fidelity Crypto Industry and Digital Payments (FDIG)
Another ETF that forms part of this is FDIG. This blockchain ETF trades on NASDAQ Global Market. It tracks the performance of an index that goes by the same name as this fund, i.e. Fidelity Crypto Industry and Digital Payments Index.
This index tracks those global organizations that deal in the blockchain. The top holdings are Roit Platforms Inc, Marathon Digital Holdings, Coinbase Global Inc Ordinary Shares 0 class A, and Block Inc Class A. The fund invests in both the equity securities as well as the depository receipts of the index; the fund invests at least 80% of these in its portfolio. The seekers of Fidelity crypto ETF can have more information on its site.
11. Siren NASDAQ NexGen Economy (BLCN)
Siren is a blockchain ETF tracks the performance of the NASDAQ Blockchain Economy Index and invests in these organizations that are dedicated to the development and use of blockchain technology. As this fund is a joint partnership of BLCN and NASDAQ, both companies perform research, and analysis of the other blockchain companies and focus on the emerging technologies related to virtual currencies.
The main holdings of this fund are First American Government Obligs X, MicroStrategy Inc Class A, Coinbase Global Inc Ordinary Shares – Class A, and Marathon Digital Holdings Inc. The top sectors where BLCN has invested the most are finance and technology.
12. 21Shares Ethereum Core ETP (CETH)
This is an odd one out in this list. 21Shares is a Swiss company (does not trade in the US) that provides several ETPs based on several leading digital currencies such as Cardano, BNB, Bitcoin, Ethereum, Bitcoin Cash, Aave, and many more. 21Shares Ethereum Core ETP takes part in collateralized lending and tracks Ethereum prices. Overcollaterized loans in the form of USD, USDC, and Ethereum are monitored daily and provide a security cushion to investors.
CETH investors need to create a separate brokerage account to buy this Exchange Traded Fund but can continue in their existing accounts. The fund being based on Ethereum will be able to leverage multiple use cases that Ethereum is coming with. Its scaling will help the investors expect good returns on their investments. This ETP provides cold storage custody and ensures enterprise-grade security. CETH trades on Six Swiss Exchange and Deutsche Boerse.
Top Canadian Crypto ETFs that You Can Buy in 2024
1. CI Galaxy Ethereum (ETHX) and CI Galaxy Bitcoin (BTCX)
These two Canadian funds trade on Toronto Stock Exchange and provide exposure to Ethereum and Bitcoin respectively. These CI Galaxy funds are best crypto ETFs for those investors who have a high-risk appetite and want exposure to the digital currencies without actually investing in any of them directly. The top holdings of this Ethereum fund is Ethereum 1 XETH IN USD and of Bitcoin Exchange Traded Fund is BITCOIN 1 XBT IN USD.
2. Evolve Ethereum (ETHR)
Evolve is an easy-to-use fund that trades on Toronto Stock Exchange. The company invests 100% of its portfolio allocation in Ethereum, which is kept as cold storage. For those who want exposure to multiple virtual assets in one fund, Evolve Cryptocurrencies is the best option.
3. Purpose Bitcoin (BTCC)
The Purpose fund is the biggest cryptocurrency ETF in Canada and also the most popular one. The company keeps the Bitcoin in cold storage and purchases real BTC with the investors’ money. So, in a way, investors own BTC. There is no need for keeping private keys or wallets on the part of investors. It generates income by selling call options on BTC or Ethereum and receiving a premium. For investment purposes, this could be the best fund. But again, you need to deep dive before making any investment.
4. Fidelity Advantage Bitcoin (FBTC)
It is a Fidelity crypto ETF that provides deals directly in Bitcoin. The company’s in-house storage assures the security of the assets. This fund is available both as an ETF as well as an ETF Fund ( a fund that allocates all its portfolio in fund). Provides enterprise-grade security of BTC to the investors.
Vanguard Cryptocurrency ETF
Now a word about the Vanguard Cryptocurrency ETF, a fund that investors quite often ask about. Vanguard which provides multiple index mutual funds and other funds, does not offer any crypto ETFs. According to Vanguard’s Chief Investment Officer, Greg Davis, “crypto does not carry any intrinsic value and is more likely a speculative asset.”
A Comparison of Different Exchange Traded Funds
| Name | NAV | Date of Inception | YTD Daily Total Return | Net Assets | Expense Ratio |
| Blok | $19.5 | 2018-01-16 | 29.43% | 460.8 M | 0.75% |
| Valkyrie Bitcoin Miners | $10.2 | 2022-02-07 | 130.47% | 9.47M | 0.75% |
| First Trust Indxx Innovative Transaction & Process | $37.4 | 2018-01-25 | 8.77% | 116.04 M | 0.65% |
| Hashdex Bitcoin Futures | $35.3 | 2022-09-15 | 65.16% | 2.25M | 0.94% |
| Global X Blockchain | $22.9 | 2021-07-12 | 80.67% | 65.77 M | 0.50% |
| CI Galaxy Ethereum | CA$8.87 | 2021-04-16 | 54.39% | CA$315 M | 0.00% |
| Evolve Ethereum | CA$8.97 | April 19, 2019 | 52.02% | CA$ 53.14 M | 0.00% |
| CI Galaxy Bitcoin | CA$5.44 | 2021-03-05 | 66.27% | CA$ 202.54 M | 0.00% |
| Purpose Bitcoin | CA$5.30 | 2021-10-14 | 65.74% | CA$696.02 M | 1.00% |
| Grayscale Future of Finance | $10.9 | 2022-02-01 | 43.53% | $4.77M | 0.70% |
| Fidelity Advantage Bitcoin | $12.2 | 2021-11-30 | 63.78% | CA$63.32M | 0.39% |
| Fidelity Crypto Industry and Digital Payments | $15.9 | 2022-04-19 | 54.60% | 30.33M | 0.39% |
| Siren NASDAQ NexGen Economy | $20.8 | 2018-01-16 | 2.41% | 79.05M | 0.68% |
| ProShares Short Bitcoin Strategy | $21.4 | 2022-06-21 | -46.91% | 141.33M | 0.95% |
| 21Shares Ethereum Core ETP | $6.88 | Sep 19, 2022 | – | $1,239,194 | 0.21% |
| ProShares Bitcoin Strategy | $15.7 | 2021-10-18 | 64.63% | 988.12M | 0.95% |
| Bitwise Crypto Industry Innovators | $6.28 | 2021-04-27 | 87.32% | 67.96M | 0.85% |
Disclaimer
This article is for informational purposes only and is NOT a financial advice. We do not promote, in any form, any ETFs or cryptocurrencies mentioned herein. The content of this article is based on the information available up to the knowledge. You should be aware that investing in any ETF or cryptocurrency is subject to market risk and you MUST do your own due diligence (DYOR) before you put any money in any of the these assets.
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Anuradha
A blockchain writer and a cryptocurrency enthusiast. First-hand experience of working in web3 domain in which I create blockchain content for both developers and end-users. A blogger by choice and passion. My interest in blockchain is only growing up with the passage of time.