20 Crypto ETFs to Know
These days, there are a lot of different ways to invest. Some people turn to stocks, bonds and mutual funds, while others are interested in cryptocurrencies. In the past couple of years, a new type of investment has emerged: cryptocurrency exchange-traded funds.
Exchange-traded funds are securities that operate similar to mutual funds, bundling up different stocks and funds into a single asset that can be traded among investors. In theory, this type of bundling can lead to more diversified portfolios and reduce the amount of risk investors hold. But unlike mutual funds, ETFs can be bought and sold on exchanges throughout the market day.
Investment brokers have been trying to get funds that invest in cryptocurrencies and cryptocurrency-related companies approved by the Securities and Exchange Commission for a number of years. That’s due to the recent popularity of cryptocurrencies, which are, by design, decentralized currencies and therefore difficult to access through established financial channels.
Currently, individuals who consider cryptocurrencies to be good investments must purchase coins through specialized cryptocurrency exchange platforms like Coinbase. That presents a barrier to entry for many investors, who are used to trading through central exchanges.
Crypto ETFs to Know
- ProShares Bitcoin Strategy ETF (BITO)
- Valkyrie Bitcoin Strategy ETF (BTF)
- VanEck Bitcoin Strategy ETF (XBTF)
- Global X Blockchain ETF (BKCH)
- Global X Blockchain & Bitcoin Strategy ETF (BITS)
- Bitwise Crypto Industry Innovators ETF (BITQ)
- Valkyrie Balance Sheet Opportunities ETF (VBB)
- First Trust Indxx Innovative Transaction & Process ETF (LEGR)
- Amplify Transformational Data Sharing ETF (BLOK)
- VanEck Digital Transformation ETF (DAPP)
The creation of ETFs that are linked to cryptocurrencies would be a way around that barrier, but as of today, the SEC has been reluctant to approve ETFs that are directly invested in cryptocurrencies. Some cryptocurrency-linked ETFs that have gained the agency’s approval are a few steps removed, such as funds that allow individuals to invest in cryptocurrency futures contracts or in companies that themselves hold cryptocurrency assets. Accredited investors also have the option to trade funds that are directly invested in cryptocurrencies in over-the-counter exchanges.
While there are likely more to come in the near future, here are 20 cryptocurrency ETFs available for investors to trade today.
20 Crypto ETFs to Know
ProShares Bitcoin Strategy ETF (BITO)
ProShares Bitcoin Strategy ETF was the first cryptocurrency-linked ETF available to investors to be approved by the SEC, and it began trading on the NYSE Arca exchange in October 2021. Prior to BITO, the SEC had consistently denied approval to cryptocurrency-linked ETFs, but greenlit the fund because it allows individuals to invest in Bitcoin futures contracts rather than holding Bitcoin assets in the fund. The operating expense fee for this ETF is 0.95 percent.
Valkyrie Bitcoin Strategy ETF (BTF)
This fund was the second cryptocurrency-linked ETF to be approved by the SEC, and it launched just a few days after BITO on the Nasdaq exchange. The two funds are very similar, both allowing individuals to invest in Bitcoin futures. BTF’s portfolio consists of mostly Bitcoin futures with 26.2 percent U.S. Treasury bills mixed in. Expense fees for BTF are also 0.95 percent.
VanEck Bitcoin Strategy ETF (XBTF)
The VanEck Bitcoin Strategy ETF is the third cryptocurrency-linked ETF approved by the SEC to debut. It began trading on the Chicago Board Options Exchange in November 2021. The fund also invests in Bitcoin futures and charges the lowest for maintenance of the three SEC-approved Bitcoin ETFs, with expense fees at 0.65 percent.
Global X Blockchain ETF (BKCH)
This ETF by Mirae Asset Financial Group began trading in July 2021. It is invested in companies that are heavily involved in blockchain technologies and stand to benefit from the widespread adoption of blockchain technology. Some of its top assets include stakes in companies such as the cryptocurrency trading platform Coinbase, the Bitcoin mining company Riot Blockchain and the cryptocurrency mining company Marathon Digital Holdings. The expense fee for investing in BKCH is 0.5 percent.
Global X Blockchain & Bitcoin Strategy ETF (BITS)
This fund is also managed by Mirae Asset Financial Group, and began trading on the Nasdaq exchange in November 2021. It has a combination of cryptocurrency-linked assets, including Bitcoin futures as well as investments in blockchain technology-related companies through the Global X Blockchain ETF. The fund charges 0.65 percent in expense fees.
Bitwise Crypto Industry Innovators ETF (BITQ)
SEI Investments Global Fund Services manages this fund, which began trading in May 2021. BITQ also invests in companies in the cryptocurrency and blockchain space, with top holdings in Galaxy Digital Holdings, a cryptocurrency and blockchain financial services and investment management company; MicroStrategy, a consulting company with a significant investment in Bitcoin; and Coinbase. The expense fee for this ETF is set at 0.85 percent.
Valkyrie Balance Sheet Opportunities ETF (VBB)
This ETF is also run by Valkyrie Investments and began trading in December 2021. The fund invests in companies that are themselves invested in Bitcoins, carry out transactions in Bitcoins or have other exposures to Bitcoin, including companies like MicroStrategy, Tesla and Block (formerly known as Square), a digital payments company. Expense fees for VBB are set at 0.75 percent.
First Trust Indxx Innovative Transaction & Process ETF (LEGR)
This fund began trading in January 2018 and is managed by First Trust Company. The fund invests in companies that are “either actively using, investing in, developing or have products that are poised to benefit from blockchain technology.” Some top companies LEGR invests in include GPU manufacturing company Nvidia, Chinese tech giant Alibaba and financial technology company PayPal. Expense fees for LEGR are set at 0.65 percent.
Amplify Transformational Data Sharing ETF (BLOK)
This fund was launched in January 2018, and it invests more than 80 percent of its total assets in companies that use and develop blockchain technology. Some top companies it holds include cryptocurrency fintech company Silvergate Capital, Nvidia and Galaxy Digital Holdings. The expense fee for BLOK is 0.71 percent.
VanEck Digital Transformation ETF (DAPP)
This ETF debuted in April 2021, and it invests in companies that manage digital assets, mine digital currency and build digital infrastructure. Some of its top assets include companies such as Block, Coinbase and Silvergate. Expense fees for the ETF are set at 0.5 percent.
First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT)
This ETF by First Trust Company first began trading in September 2021. The fund invests at least 80 percent of its assets in “crypto industry companies and digital economy companies.” Top assets include Coinbase, Galaxy Digital Holdings and MicroStrategy. First Trust charges a 0.85 expense fee.
Volt Crypto Industry Revolution and Tech ETF (BTCR)
BTCR began trading in October 2021, and it invests in companies that are heavily involved in Bitcoin technologies and infrastructure. Some of its top holdings include cryptocurrency mining companies like Argo Blockchain and Bitfarms as well as MicroStrategy. It has an expense fee of 0.85 percent.
Invesco Alerian Galaxy Crypto Economy ETF (SATO)
This ETF began trading in October 2021, and invests over 80 percent of its assets in either companies that are engaged in “cryptocurrency, cryptocurrency mining, cryptocurrency buying or enabling technologies” or other funds that invest at least 75 percent of their assets in Bitcoin. The fund charges 0.6 percent in management fees.
Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC)
BLKC began trading on the Chicago Board Options Exchange in October 2021. Also managed by Invesco, it invests over 80 percent of its assets in either companies that work with blockchain technology or cryptocurrency mining, or in cryptocurrency-linked funds that are trading in over-the-counter markets. The fund charges a 0.6 percent management fee.
Bitwise 10 Crypto Index Fund (BITW)
This fund was made available for trading in December 2020 and is managed by Bitwise Asset Management, an investment company that specializes in cryptocurrency investments. Because the fund has not been approved by the SEC, the fund may only be purchased by accredited investors on over-the-counter markets instead of on a central exchange. The fund invests in cryptocurrencies directly, with holdings in 10 of the largest cryptocurrencies — mostly Bitcoin and Ethereum — and also includes what the company calls “up-and-coming assets.” That currently includes a combined total of around 10 percent of Solana, Cardano, Avalanche and other cryptocurrencies. The expense rate for the fund is 2.5 percent of the assets under management.
Grayscale Digital Large Cap Fund (GDLC)
Open to trading in November 2019, this fund is managed by Grayscale Investments, an asset management company that specializes in digital currency assets. This fund has not been approved by the SEC and is only available on over-the-counter markets to accredited investors. Currently, the fund consists mostly of Bitcoin and Ethereum. Four other cryptocurrencies, including Cardano and Solana, make up less than 10 percent of the total assets. The fund is rebalanced quarterly and charges 2.5 percent annually for a manager’s fee.
Grayscale Bitcoin Trust (GBTC)
This fund by Grayscale Investments began trading in May 2015, and was one of the first securities to be solely invested in Bitcoin, according to the company. The fund is not SEC approved but is available for trading on over-the-counter markets by accredited investors and charges a 2 percent sponsor’s fee anually.
Grayscale Ethereum Trust (ETHE)
This fund, also by Grayscale Investments, was one of the first securities to be solely invested in Ethereum. The fund was launched in June 2019 and charges a 2.5 percent sponsor’s fee. ETHE is not SEC approved and is available to accredited investors on over-the-counter markets.
Teucrium Bitcoin Futures ETF
The SEC approved Teucrium’s Bitcoin futures ETF in April 2022. Although the fund has not yet begun trading, it is expected to do so on the NYSE Arca exchange under the ticker symbol BCFU and to charge a fee of one percent.
Valkyrie XBTO Bitcoin Futures ETF
The SEC approved this Valkyrie fund in May 2022. In addition to Bitcoin futures, the fund will also have other Bitcoin-linked assets like swaps, options and forwards. The fund is expected to trade under the ticker symbol BTFX.