If you’re new to cryptocurrency but want to tap into its potential, Crypto ETFs (Exchange-Traded Funds) might be your ideal starting point. Rather than navigating the complexities of buying individual digital currencies, ETFs offer a more straightforward and diversified way to invest in the booming crypto market.
As 2024 unfolds, regulators like the US Securities and Exchange Commission (SEC) are opening doors to Bitcoin and Ethereum ETFs, allowing easy access to these major cryptocurrencies. Beyond these, some ETFs give exposure to multiple cryptos or companies tied to blockchain technology, offering a broad spectrum of investment opportunities. With market volatility being a challenge, investing through ETFs can help mitigate risks while building a diversified portfolio.
In this blog, we’ll explore the top Crypto ETF List of 2024, helping you find the right investment options. Whether you’re an experienced investor or just starting, crypto ETFs could be your gateway to digital asset success.
Top Crypto ETF List Of 2024
Here’s a list of the best crypto ETFs list of 2024:
Crypto ETFs Name | Symbols | Asset Class | Total Assets in ($MM) |
Amplify Transformational Data Sharing ETF | BLOK | Equity | $679 |
Global X Blockchain ETF | BKCH | Equity | $150 |
Siren Nasdaq NexGen Economy ETF | BLCN | Equity | $62 |
Fidelity Wise Origin Bitcoin Trust | FBTC | Currency | $11,213 |
VanEck Digital Transformation ETF | DAPP | Equity | $134 |
Bitwise Crypto Industry Innovators ETF | BITQ | Equity | $125 |
First Trust Indxx Innovative Transaction & Process ETF | LEGR | Equity | $105 |
The first fund in the crypto ETF list of 2024 is the Amplify Transformational Data Sharing ETF (BLOK). This is a unique exchange-traded fund (ETF) that focuses on blockchain technology and was launched in January 2018. As the first ETF of its kind, BLOK takes advantage of the growing demand for blockchain-related investments.
The fund actively manages its portfolio by investing in companies that are either developing or utilizing blockchain technology. This includes firms involved in cryptocurrency exchanges, mining operations, and new blockchain applications.
Unlike some crypto ETFs, BLOK does not directly invest in cryptocurrencies like Bitcoin or Ethereum. Instead, it targets companies working in the blockchain ecosystem. This makes it a smart choice for investors seeking exposure to blockchain without directly holding volatile crypto assets. With over 50 company stocks in its portfolio, BLOK’s top holdings include major players like MicroStrategy, Coinbase Global, and PayPal.
BLOK has a 0.76% annual expense ratio, which means an investor would pay $7.60 in fees for every $1,000 invested, making it a strong contender for those interested in blockchain technology investments.
Next on the list of best crypto ETF funds is the Global X Blockchain ETF (BKCH). It offers investors a focused opportunity to gain exposure to the expanding blockchain technology sector. Launched in November 2021, this fund specifically targets companies that are advancing blockchain and cryptocurrency innovations.
BKCH is passively managed and tracks the Solactive Blockchain Index, which includes firms worldwide involved in blockchain development, cryptocurrency mining, and related technologies. The ETF’s strategy centers on investing in companies that stand to benefit from the widespread adoption of blockchain technology. This includes firms engaged in crypto mining, exchanges, and those developing new blockchain applications.
Unlike other funds that invest directly in Bitcoin futures, BKCH avoids the complexities and potential underperformance associated with futures contracts. Instead, it focuses on a diversified portfolio of technology and mining stocks.
With an annual expense ratio of 0.50%, the ETF offers a cost-effective way for investors to gain indirect exposure to Bitcoin and the broader blockchain sector, making it an attractive choice for those interested in the future of digital currencies and blockchain technology.
The Siren Nasdaq NexGen Economy ETF, known by its ticker BLCN, is a strategic investment fund launched in January 2018. This ETF aims to capture the growth potential of companies involved in blockchain technology and thereby places itself as one of the best ETFs on the list of best crypto ETF funds.
By tracking the Nasdaq Blockchain Economy Index, BLCN provides exposure to businesses that are either developing blockchain innovations or leveraging this technology to enhance their operations.
BLCN boasts a diverse portfolio of over 50 stocks, focusing on both established tech giants and emerging players within the blockchain sector. This includes major tech companies like Nvidia, known for its role in blockchain-related hardware, and traditional financial institutions such as Visa and Block, which are venturing into the crypto space.
The ETF’s approach offers investors a broad view of the blockchain economy’s evolution, distinguishing itself from other similar funds with its unique selection of holdings.
With an expense ratio of 0.68%, BLCN provides a cost-effective way to invest in the future of blockchain technology.
The Fidelity Wise Origin Bitcoin Trust, ticker FBTC, stands out as one of the prominent Bitcoin ETFs launched in January 2024, following SEC’s approval. As the third-largest Bitcoin fund by assets, FBTC represents a significant player in the crypto investment space.
Fidelity, a highly reputable financial institution, manages this trust with a key feature: it maintains self-custody of its Bitcoin holdings. Unlike many Bitcoin ETFs that rely on third-party crypto brokers for custody, such as Coinbase Global, Fidelity handles its own Bitcoin storage. This aspect appeals to investors who prefer the added security and trustworthiness of Fidelity’s management.
With an expense ratio of 0.25%, FBTC offers a cost-efficient option for investors. For a $1,000 investment, this translates to just $2.50 in annual fees, making it a competitively priced choice in the Bitcoin ETF market.
The VanEck Digital Transformation ETF (DAPP) is a passively managed investment fund that began trading in April 2021. This ETF tracks the MVIS Global Digital Assets Equity Index, which includes stocks of companies heavily involved in cryptocurrency and blockchain technology.
DAPP offers investors focused exposure to the digital assets sector, capturing the performance of firms that are at the forefront of this technological revolution. That is why it is listed on number 5 of our best crypto ETF funds.
One notable feature of DAPP is its international reach. As of April 2023, approximately 34% of its holdings are based outside the United States, providing a global perspective on the digital asset landscape. This diversification enhances its appeal for those looking to invest in the worldwide growth of blockchain and cryptocurrency industries. This ETF has an expense ratio of 0.51% that suits your pocket.
The Bitwise Crypto Industry Innovators ETF, or BITQ, is a specialized fund designed to provide targeted exposure to the cryptocurrency sector. Launched to track the performance of the Bitwise Crypto Innovators 30 Index, BITQ includes 30 companies heavily engaged in the crypto space.
These firms are involved in various aspects of the industry, such as crypto mining, mining equipment production, and financial services related to cryptocurrencies.
To qualify for inclusion in the index, companies must derive at least 75% of their revenue from cryptocurrency activities or hold 75% of their assets in crypto. This stringent criterion ensures that BITQ’s holdings are deeply integrated into the crypto ecosystem.
The ETF allocates about 85% of its assets to these core companies, while the remaining 15% includes other significant stocks with indirect crypto exposure or substantial crypto holdings. BITQ has an expense ratio of 0.85% and offers a focused investment approach for those looking to capitalise on the growth of the cryptocurrency industry.
The First Trust Indxx Innovative Transaction & Process ETF offers a comprehensive approach to investing in the blockchain and crypto sectors. Launched by First Trust, a well-regarded investment firm, this ETF provides exposure to over 100 stocks, making it one of the most diversified options available for investors interested in blockchain technology.
LEGR tracks the Indxx Innovative Transaction & Process Index, which includes a broad range of companies engaged in blockchain innovation and related processes. This diverse portfolio encompasses both domestic and international tech firms, with a notable portion from Chinese companies, making it an appealing choice for those seeking global exposure.
With an expense ratio of 0.65%, LEGR remains cost-effective compared to other funds. Its extensive diversification helps moderate volatility, offering a balanced way to invest in the crypto space. While this might mean less dramatic gains during bull markets, it also shields investors from severe losses in downturns.
Why Should You Invest in Crypto ETFs?
Investing in the best crypto ETF funds offers several reasonable advantages, making them an attractive option for those looking to gain exposure to the crypto market.
No Additional Costs
Crypto ETFs provide a cost-effective way to invest in cryptocurrencies. Unlike owning cryptocurrencies directly, which involves expenses like custody fees and transaction charges, ETFs streamline this process. You avoid the hidden costs associated with digital wallets and blockchain transactions. By investing in a crypto ETF, you outsource these expenses, which simplifies the investment process and reduces overall costs.
Lower Investment Threshold
Cryptocurrency prices have surged in recent years, making direct investment increasingly expensive for the average investor. Crypto ETFs lower this barrier to entry, allowing you to invest in a diversified portfolio of cryptocurrencies at a fraction of the cost. This means you can gain exposure to the crypto market without needing a substantial upfront investment.
Eliminate Crypto-Related Worries
The complexity of cryptocurrencies and blockchain technology can be daunting. Crypto ETFs eliminate the need for you to understand the intricate details of crypto markets. Analysts and fund managers handle the technical aspects, so you can invest with confidence without navigating the confusing crypto landscape yourself.
No Hacking Risks
Security concerns have plagued the cryptocurrency world, with numerous high-profile hacks compromising digital assets. Investing in a crypto ETF mitigates these risks, as the fund handles security measures and protects your investment. You benefit from the growth of cryptocurrencies without the associated security threats.
Diversification
The crypto market is vast, with thousands of different cryptocurrencies available. A crypto ETF provides diversification by investing in a broad selection of these assets. This allows you to spread your investment across various cryptocurrencies, reducing the risk associated with investing in a single coin and simplifying the process of building a diversified portfolio.
Crypto ETF Investment Strategy
Investing in ETFs from the top crypto etf list of funds involves a strategic approach to navigate the unpredictable cryptocurrency market. These funds provide a simplified way to invest in digital currencies, but selecting the right strategy can significantly improve your returns and reduce risks. Here’s a look at effective strategies for managing your crypto ETF investments.
Diversify Your Crypto Investments
Diversification is essential when investing in crypto ETFs to spread risk and enhance potential returns. By including a variety of cryptocurrencies in your portfolio, you mitigate the impact of a single underperforming asset. This strategy helps balance high-risk, high-reward investments with more stable ones.
Investing in a range of digital assets ensures that the positive performance of some can offset the losses of others. For example, a well-diversified ETF might hold major cryptocurrencies like Bitcoin and Ethereum, along with emerging tokens. This approach can also involve selecting ETFs that focus on different sectors of the crypto industry, such as blockchain technology or decentralised finance (DeFi) projects.
Market Timing and Dollar-Cost Averaging
Given the crypto market’s volatility, timing your investments can be challenging. Dollar-cost averaging (DCA) is a useful strategy in this scenario. With DCA, you invest a fixed amount of money at regular intervals, regardless of the asset’s price. This approach helps smooth out the impact of market fluctuations and reduces the risk of making large investments at inopportune times.
Set a consistent schedule for your DCA investments, such as monthly or bi-weekly. This method encourages disciplined investing and can potentially lower your average cost per share. Over time, DCA helps you avoid emotional decision-making and takes advantage of long-term asset appreciation.
Research ETF Performance and Management
Thorough research is crucial when selecting a crypto ETF. Examine the fund’s past performance to gauge how it has responded to market changes. While past results are not indicative of future performance, they provide insight into the ETF’s stability and potential.
Evaluate the fund’s management team to ensure they have a strong track record and effective strategies. Understanding their investment approach and historical performance can help you assess whether the ETF aligns with your investment goals and risk tolerance. Additionally, compare the ETF’s fees and performance with other options to ensure you receive good value for your investment.
How To Choose A Crypto ETF?
Choosing the right ETF from the list of best crypto ETF funds involves evaluating several key factors to ensure it aligns with your investment goals. Here’s a breakdown of the essential aspects to consider:
Expense Ratio
The expense ratio reflects the annual fees charged by the ETF fund manager. This fee, expressed as a percentage of assets, impacts your overall returns. Look for ETFs with a lower expense ratio to minimize costs while investing. High fees can eat into your profits, so choose a fund that balances cost with value.
Fund Size
The size of the fund, or Assets Under Management (AUM), is a crucial indicator of its stability and popularity. Larger funds often benefit from economies of scale, leading to lower expense ratios and better liquidity. However, don’t overlook smaller funds if they offer unique advantages or specialize in niche areas of the crypto market.
Liquidity
Liquidity measures how easily you can buy or sell the ETF without significantly affecting its price. Higher liquidity generally means tighter bid-ask spreads and less price impact. Check the average trading volume and the bid-ask spread of the ETF. Higher liquidity ensures that you can enter or exit positions more efficiently.
Your Goals
Consider how the ETF from the list of best crypto ETF funds fits into your broader investment strategy. Are you looking for exposure to a wide range of cryptocurrencies or specific sectors within the blockchain economy? Your investment goals will determine the type of ETF that meets your needs. For example, an ETF tracking a broad index might be suitable if you’re interested in diversified exposure.
Assets Under Management
Assets Under Management (AUM) is another key metric to evaluate. Higher AUM often indicates greater market confidence and can provide more stability. Funds with larger AUM usually have lower expense ratios and better liquidity. However, a smaller fund might offer niche opportunities or specialized exposure that aligns with your investment strategy.
Investment Strategy Of The Fund
Examine the fund’s investment strategy to understand its approach to the crypto market. Some ETFs focus on a broad index of cryptocurrencies, while others might target specific sectors, such as blockchain technology or digital payments. Review the fund’s prospectus to ensure its strategy aligns with your investment goals and risk tolerance.
Conclusion
Investing in crypto ETFs using the above crypto ETF list presents a compelling opportunity for new investors in 2024. By providing a diversified approach to digital asset exposure, these funds simplify the process of entering the cryptocurrency market.
Whether you choose ETFs focusing on major cryptocurrencies like Bitcoin and Ethereum or those covering a broad range of digital assets and blockchain companies, you’ll find options tailored to various investment goals and risk appetites.
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