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Is going about owning “physical” cryptocurrencies a little too technical for you but you would still like to be involved in the marketplace? Well, here’s the answer: buy an ETF that consists of companies involved in the sector but without the associated risk of self-custody within a digital wallet. There are many to choose from and this article identifies all the cryptocurrency ETFs, mutual funds, and trusts currently trading on U.S. and Canadian stock exchanges with descriptions of each and links to their charts and daily pricing.
By Lorimer Wilson, Founder & Managing Editor of munKNEE.com and a frequent contributor to eResearch.com, usfinancepost.com, bitgrum.com and talkmarkets.com.
Cryptocurrency/Blockchain ETFs
- VanEck Bitcoin Strategy ETF (XBTF) offers exposure to Bitcoin through the futures market and has a management fee of only 0.65%. Go here for a chart of the most recent pricing.
- VanEck Digital Transformation ETF (DAPP) has just 25 holdings of which the top 10 account for 64% of total assets and an expense ratio of 0.68%. Go here for a chart of the most recent pricing.
- VanEck Digital Assets Mining ETF (DAM) has 25 holdings, the top 10 account for 63% of the fund’s total net assets, that generate at least 50% of their revenue from crypto mining or related activities (excluding cryptocurrencies directly or through the use of derivatives. It has an expense ratio of 0.50%. Go here for a chart of the most recent pricing.
- Global X Blockchain and Bitcoin Strategy ETF (BITS) provides access to both bitcoin futures and companies positioned to potentially benefit from advances in blockchain technology. It has an expense ratio of 0.65%. Go here for a chart of the most recent pricing.
- Global X Blockchain ETF (BKCH) tracks companies that utilize, or benefit from, digital assets and blockchain technologies dividing the companies into “pure-play”, “pre-revenue” and “diversified” (less than 50% of revenues from blockchain activities). The index has an expense ratio of 0.50%. Go here for a chart of the most recent pricing.
- Valkyrie Bitcoin Strategy ETF (BTF) also tracks Bitcoin futures and has an expense ratio of 0.95%. Go here for a chart of the most recent pricing.
- Valkyrie Bitcoin Miners ETF (WGMI) invests a majority of its assets in companies that generate at least half their sales or profits from Bitcoin mining or sell products and services focusing on the bitcoin mining industry with its top 10 holdings accounting for 67% of the fund’s total net assets. It has an expense ratio of 0.75%. Go here for a chart of the most recent pricing.
- First Trust Indxx Innovative Transaction & Process ETF (LEGR) tracks the performance of companies that have some connection to blockchain technologies. The index has an expense ratio of 0.65%. Go here for a chart of the most recent pricing.
- First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT) has 30 constituents, with the top 10 accounting for 60% of assets. It invests 50% of its net assets in “crypto industry companies” and 50% in “digital economy companies” and has an expense ratio of 0.85%. Go here for a chart of the most recent pricing.
- Volt Crypto Industry Revolution and Tech ETF (BTCR) offers exposure to cryptocurrency through miners and crypto-centric tech plays and provides an algorithm that predicts the future price of Bitcoin by measuring its scarcity of supply. Its expense ratio has not been made available. Go here for a chart of the most recent pricing.
- ProShares Bitcoin Strategy ETF (BITO) tracks Bitcoin futures rather than the spot price of Bitcoin itself and has an expense ratio of 0.95%. Go here for a chart of the most recent pricing.
- Amplify Transformational Data Sharing ETF (BLOK) invests in companies involved in developing blockchain technologies and/or using them for their own business and also invests in the Purpose Bitcoin ETF (BTCC) and the 3iQ CoinShares Bitcoin ETF (BTCQ). It has an expense ratio of 0.71%. Go here for a chart of the most recent pricing.
- Bitwise Crypto Industry Innovators ETF (BITQ) provides exposure to companies building the crypto infrastructure such as Bitcoin miners, trading platforms, etc., and global cryptocurrency players such as Coinbase. It has an expense ratio of 0.85%. Go here for a chart of the most recent pricing.
- Siren Nasdaq NexGen Economy ETF (BLCN) tracks the performance of stocks that support blockchain technology or utilize it for their own businesses. The index has an expense ratio of 0.68%. Go here for a chart of the most recent pricing.
- Simplify US Equity PLUS GBTC ETF (SPBC) provides a 100% investment in equities and an additional 10%, to a maximum 15%, in the Grayscale Bitcoin Trust (GBTC). The index has an expense ratio of 0.74%. Go here for a chart of the most recent pricing.
- Grayscale Future of Finance ETF (GFOF) invests in shares of cryptocurrency mining-related firms, exchanges, payment platforms, and asset managers and has an expense ratio of 0.70%. Its top 10 holdings account for 61% of the fund’s total net assets. Go here for a chart of the most recent pricing.
Cryptocurrency ETFs Trading Only On Canadian Stock Exchanges
The following ETFs only trade on Canadian exchanges and the “.U” in the symbol provides pricing information in U.S. dollars. If you are American and wish to buy any of the ETFs, funds, or trusts listed below consider providing your broker with the security’s CUSIP number (Go here to read Advice For Americans On Buying Cannabis Stocks Listed On Canadian Exchanges) to facilitate any transaction.
17. Evolve Bitcoin ETF (EBIT and EBIT.U), provides investors a practical way to invest directly in Bitcoin using a brokerage account, and has a management fee of $0.75%.
18. Purpose Bitcoin ETF (BTCC and BTCC.U) became the world’s first physically settled ETF exchange-traded fund back on February 18, 2021. When you buy the ETF, they buy real Bitcoin with your money and, just like buying shares of your favorite stock, you can buy and sell Bitcoin seamlessly in your portfolio.
19. CI Galaxy Bitcoin ETF (BTCX.U and BTCX.B) has the lowest fee (0.4%) of any cryptocurrency ETF.
20. The Evolve Ether ETF (ETHR and ETHR.U) was the world’s first Ether ETF and provides investors with exposure to the daily price movements of the U.S. dollar price of Ether and has a management fee of 0.75%.
21. The 3iQ CoinShares Ether ETF (ETHQ and ETHQ.U) provides unitholders with exposure to the daily price movements of the U.S. dollar price of Ether and has a management fee of 1%.
22. Evolve Cryptocurrencies ETF (ETC and ETC.U) is a convenient way to obtain exposure to both bitcoin and ether on a market capitalization basis. Initially, it began investing in the Evolve Bitcoin ETF (EBIT.U) and Evolve Ether ETF (ETHR), and, because of that, they have no management fees.
23. Purpose Ether ETF (ETHH and ETHH.U) invests directly in physically settled Ether tokens, not derivatives, allowing investors easy and efficient access to the emerging Ether asset without the associated risk of self-custody within a digital wallet.
24. 3iQ Coinshare Bitcoin ETF (BTCQ and BTCQ.U) provides exposure to the daily price movements of the U.S. dollar price of bitcoin.
25. Ninepoint Bitcoin ETF (BITC and BITC.U) offers carbon-neutral exposure to Bitcoin for investors attracted to environmental, social & governance investment opportunities.
26. CI Galaxy Ethereum (ETHX.U) provides exposure to Ether through an institutional-quality fund platform.
For the more aggressive investor consider the following:
Inverse (Opposite) Cryptocurrency ETF:
27. BetaPro Inverse Bitcoin ETF (BITI and BITI.U) is designed to provide daily investment results through short investments in bitcoin futures that endeavor to correspond to the single inverse (opposite) performance of an index that replicates the returns generated over time through long notional investments in Bitcoin Futures.
Cryptocurrency Mutual Funds and Trusts
To give you a complete overview of investment vehicles available for investing in cryptocurrencies consider the following:
28. Bitcoin Strategy ProFund Investor Fund (BTCFX) invests in Bitcoin futures contracts, in Canadian ETFs that invest in Bitcoin directly, and if it wants, in money market instruments such as U.S. Treasuries and has a 1.15% expense ratio.
29. The Bitwise 10 Crypto Index Fund (BITW) tracks the performance of the 10 largest investable cryptocurrencies accounting for 70% of the total crypto market (Bitcoin accounts for 65% of the portfolio, Ether: 25%, and Cardano (4%).
30. Grayscale Bitcoin Trust (GBTC) is solely and passively invested in Bitcoin allowing investors to buy and sell shares through most traditional brokerage accounts at prices dictated by the market.
31. Grayscale Ethereum Trust (ETHE) is solely and passively invested in Ethereum allowing investors to buy and sell shares through most traditional brokerage accounts at prices dictated by the market.
Below are 3 charts/maps on the usage, growth, and regulation of cryptocurrencies by country and they are most revealing.
Usage
The chart below shows which countries are the heaviest users of cryptocurrencies around the world, based on transaction values with a focus on non-professional and peer-to-peer use to gauge which countries have really made strides in adopting crypto use across a larger swath of their populations.
Vietnam ranks first, scoring high on overall crypto transaction value as well as payments made by individuals, primarily because they are used as an investment tool in lieu of other good options.
Growth
The chart below from Chartanalysis shows the share of respondents in selected countries who said that they used or owned cryptocurrencies in 2019 and 2021.
Regulation
The above stats are influenced by the fact that, according to the Law Library of the U.S. Congress (see map below), nine (9) countries have an absolute ban on the use of cryptocurrencies while a large number of other countries (primarily in Africa, the Middle East and Asia) have an implicit ban on its use.
Conclusion
There you have it: an insight into the current usage, growth, and regulations regarding cryptocurrencies and 31 investment vehicles for your consideration.