7 Best Cryptocurrency ETFs To Buy

These cryptocurrency ETFs are a safe and efficient way to buy digital assets.

Last Updated November 22nd 2021

17 Min Read

Exchange-traded funds have become a huge source of excitement in the crypto market. Since 2018, any hope of a major Bitcoin-ETF being approved has led to a pump. Major dumps have also followed whenever one is rejected.

More recently, the approval of the ProShares Bitcoin ETF led to a pump that saw Bitcoin make new highs of $68k. The excitement around cryptocurrency ETFs has a lot to do with attracting institutional money.

Since their inception in 2009, cryptocurrencies have been a little too complex for many people. That’s especially the case when it comes to cryptocurrency buying and storage. While crypto exchanges have become easier to use over the years, the underlying issues of purchase and storage remain, especially for institutions.

That’s because most crypto exchanges are unregulated, and even when they are regulated, they carry a higher risk of folding up compared to stock exchanges. In essence, for an institution looking to buy billions of dollars worth of crypto, the risk of trusting an exchange is a little too high.

The other option would be to use decentralized exchanges. Unfortunately, these are a little too complicated for most users compared to centralized exchanges. There is also the risk of hacking in the purchase process.

On the issue of storage, cryptocurrency storage is no mean feat. Hackers have mastered the best tricks to try and steal as much crypto as they can. Whether you store your cryptocurrency in a wallet, or in an exchange, the risk of getting hacked is always there. This risk is even higher for institutional players buying billions of dollars worth of crypto.

Storage is made even more complicated because if you decide to store cryptocurrency by yourself, you have to be in full control of your private keys. If you lose your keys, your crypto assets are lost forever. Unlike your bank where you can call customer service to reset your password, with crypto, it's gone forever once the private key is lost. For institutions or individuals buying big money worth of crypto, such a loss can be devastating.

It is for this reason that institutional money has stayed out of cryptocurrencies for a very long time. However, thanks to ETFs, the trend is changing. ETFs are attracting institutional money because they solve the twin problems of purchase and storage.

For instance, with a Bitcoin ETF, you do not need to buy Bitcoin directly. Instead, you get exposure to Bitcoin through derivatives contracts. The process of buying into an ETF is easy since it works like a traditional stock exchange. You also never have to worry about storage since you don’t buy Bitcoin directly.

However, before you jump into buying into a cryptocurrency ETF, you need to be aware that they charge fees, and the fees vary between ETFs.

To help you make the most of your investment, here are the 7 top cryptocurrency ETFs that give you exposure to cryptocurrencies or companies focused on the cryptocurrency market.

7 Best Cryptocurrency ETFs To Buy

Siren NASDAQ NexGen Economy ETF (BLCN)
Bitwise 10 Crypto Index Fund (BITW)
Valkyrie Bitcoin Strategy ETF (BTF)
Amplify Transformational Data Sharing ETF (BLOK)
First Trust Indxx Innovative Transaction and Process ETF (LEGR)
Grayscale Ethereum Trust (ETHE)
Pro-Shares Bitcoin ETF (BITO)

1. Siren NASDAQ NexGen Economy ETF (BLCN)

The Siren NASDAQ NexGen Economy ETF is one of the best cryptocurrency ETFs in the market. One of the advantages of this ETF is diversity. You don’t just get to track the price of Bitcoin, but also blockchain-focused companies.

In essence, besides betting on the price of Bitcoin going up, you also bet on the value generated by Fintech companies that are using blockchain technology. For context on the potential this ETF holds, it has investments in crypto companies like Overstock.com Inc (OSTK) and Silvergate Capital (SI).

To give you an idea of how big of a deal this is, Silvergate has several digital asset services that can generate value regardless of how the cryptocurrency market trades. Some of its services include SEN leverage and institutional custody.

With SEN leverage, investors can use their Bitcoin as collateral to access loans in USD. This helps them unlock value from their BTC holdings regardless of the market direction.

On the other hand, Silvergate institutional custody guarantees institutions safe storage of their Bitcoin and other crypto-assets at a fee. With the institutional adoption of cryptocurrencies on a growth trajectory, custody is a high growth income stream for Silvergate. It creates an element of stability to The Siren NASDAQ NexGen Economy ETF.

It’s the same case for other stocks that this ETF tracks, such as Overstock. Overstock has been in an aggressive transition into digital currencies and blockchain technology lately. The company wants to leverage the power of blockchain technology and even used this tech to distribute dividends in the form of a digital currency airdrop.

With blockchain technology set to be the next frontier of tech growth, Overstock value has a good chance of going up long term. This, by extension, spells good tidings for The Siren NASDAQ NexGen Economy ETF investors.

Another worthy mention of the blockchain stocks that BLCN tracks is the Bakkt Holdings Inc (BAKKT). Bakkt is a big name in crypto circles and is unlocking crypto value by making cryptocurrencies usable for everyday transactions. Bakkt also has a Bitcoin futures product. This means, by investing in the Siren NASDAQ NexGen Economy ETF, you have exposure to the potential gains that could accrue from a rally in the price of Bitcoin.

Aside from the low downside risk that this ETF presents to investors, it also has pretty low fees. The Siren NASDAQ NexGen Economy ETF has an expense ratio of 0.68%. This is within reach of most investors.

If you want a mix of Bitcoin speculation and the potential that blockchain technology as a whole offers, this is one ETF to give some serious consideration.

68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

2. Bitwise 10 Crypto Index Fund (BITW)

Bitcoin is the largest cryptocurrency by market capitalization. However, altcoins have proven to be better bets in terms of absolute gains.

In essence, an ETF that gives you exposure to Bitcoin and a host of altcoins is better than one specific to Bitcoin.

For this reason, the Bitwise 10 Crypto Index Fund ranks highly among the 7 best cryptocurrency ETFs to buy. This ETF gives investors access to the 10 largest cryptocurrencies in the market.

To understand how big of a deal this is, you need to consider how well the top ten altcoins have performed this year. Most of them have outperformed Bitcoin by a considerable margin, as illustrated in the table below.

Crypto	Performance year-to-date
Bitcoin	215.18%
Ethereum	742.52%
Binance coin	1889.19%
Solana	9527.86%
Cardano	1399.22%
XRP	191.46%
Polkadot	680.4%
Dogecoin	6850.16%
Shiba Inu	20,000,000%
Avalanche	3484.16%

With the exception of XRP, all top 10 altcoins have outperformed Bitcoin by a huge margin in 2021. This makes an investment in the Bitwise 10 Crypto Index Fund multiple times better than in an ETF focused on Bitcoin alone.

The best part about the Bitwise 10 Crypto Index Fund ETF is that it is constantly rebalancing to reflect the performance of different altcoins at any given time. This is a big deal because the list of top 10 cryptocurrencies is continuously changing.

Essentially, by investing in the Bitwise ETF, you are always in on the best altcoins, regardless of which ones they may be.

However, for the benefits it offers, the Bitwise ETF does not come cheap. The BITW ETF has an expense ratio of 2.5%. It’s a little high but still within manageable levels for the average investor.

Besides, considering the potential for parabolic gains that altcoins hold, the fees are worthwhile.

→ Click here to start trading Cryptocurrency

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

3. Valkyrie Bitcoin Strategy ETF (BTF)

The Valkyrie Bitcoin Strategy is relatively new, but it is already trading on the NASDAQ. Like the Bitwise 10 Crypto Index Fund ETF, the Valkyrie Bitcoin Strategy ETF offers a mix of Bitcoin and other cryptocurrencies (for international investors).

One of the key features of BTF is that it does not hold any Bitcoin. Instead, it buys into Bitcoin futures from the Chicago Mercantile Exchange Bitcoin futures. This is advantageous for several reasons.

Firstly, it means that you do not face the custody risks that come with investing in Bitcoin directly. At the same time, you have the advantage of liquidity. Since the Valkyrie Bitcoin Strategy ETF tracks the highly liquid Chicago Mercantile Exchange, you can quickly enter and exit the market. This can help you take advantage of emerging opportunities while at the same time lowering the risk of getting caught up in down markets when trading in large amounts.

The Valkyrie Bitcoin Strategy ETF is pretty forward-looking too and aims to increase its service offering over time. For instance, while it only offers Bitcoin to its U.S customers, BTF intends to start offering other ETF services in the next couple of months.

By investing in Valkyrie Bitcoin Strategy ETF, you also gain access to some of the best brains in fund management. BTF is actively managed, which means at any time, you have access to the expertise you need to make the best decisions regarding your Bitcoin investments. Access to the right information can help you better manage risks, and emerge better off than you would, Bitcoin and other cryptocurrencies directly.

The Valkyrie Bitcoin Strategy ETF is also affordable. For the quality of service it offers, BTF’s expense ratio is only 0.95%. This means on an investment of $1000, your expenses are only $9.5.

4. Amplify Transformational Data Sharing ETF (BLOK)

Suppose you want an ETF that gives you exposure to the potential benefits of blockchain technology without the volatility that comes with cryptocurrencies. In that case, the BLOK ETF is one of the best.

Ample Transformational Data Sharing ETF gives you exposure to some of the fastest-growing blockchain companies in the market today. Some of the blockchain companies that it gives you access to include: Coinbase Global Inc (COIN), Silvergate Capital Corp (SI), and Galaxy Digital Holdings Ltd (GLXY).

These companies have lots of growth potential and are also relatively cushioned from the everyday price fluctuations of Bitcoin and other cryptocurrencies. For instance, Coinbase is one of the world’s largest crypto exchanges and has a stable and growing income stream from trading fees. The exchange also has a fast-growing revenue source from its institutional crypto custody services.

A company like Galaxy Digital also has lots of growth potential from offering crypto asset management services to institutional investors. The company is also involved in Bitcoin mining and also finances miners to expand their operations.

Essentially, by investing in the Amplify Transformational Data Sharing ETF, you benefit from crypto market growth, while diversifying the risks. To understand just how diversified you are by investing in the BLOK ETF, consider that it has investments in 45 blockchain companies. Of the 45 blockchain companies that it is invested in, 10 of its biggest holdings account for about 44% of its total assets.

With the Amplify Transformational Data Sharing ETF, you also benefit from seasoned asset managers' active management. Part of this ETF’s core mission is to maximize investor returns by putting about 80% of its total net assets in companies that are actively exploiting the benefits that come with blockchain technology.

Its costs are pretty low for all the advantages that the Amplify Transformational Data Sharing ETF offers investors. The BLOK ETF has an expense ratio of 0.71%. This translates to costs of about $71 on an investment of $10,000. That’s within the reach of most investors.

Your capital is at risk. Other fees apply.

5. First Trust Indxx Innovative Transaction and Process ETF (LEGR)

This is one of the best ETFs for investors looking for growth from the crypto space but doesn’t want direct exposure to cryptocurrencies.

It works by investing half of its total funds in companies that are developing blockchain solutions, and 50% in those using the tech. This approach has seen this ETF give a higher return on investment than most ETFs at a much lower risk.

The LEGO ETF also has a huge basket of companies in its holding, and they are all world-class. For instance, the ETF has holdings in NVidia Corp (NVDA), and Advanced Micro Devices Inc (AMD).

Both of these companies are involved in the production of graphics cards that are used in crypto mining. The company also has holdings in Salesforce.com Inc (CRM), one of the largest tech companies in the world, and is actively integrating blockchain technology into its systems.

While this ETF may not give you the parabolic returns that come with holding cryptocurrencies directly, it cushions you from the risks that come with crypto volatility.

For instance, the price of Bitcoin and other cryptocurrencies can, and has, in the past, dropped by over 50% in months. The caliber of stocks that this ETF invests in is unlikely to lose value by the same magnitude. Stocks like Salesforce.com and Advanced Micro Devices Inc are fundamentally strong, even without blockchain.

The LEGO ETF is also actively managed, which means; investors can expect to leverage the best brains in finance for consistency in investment returns.

Besides stability and growth, this ETF has the advantage of cost.

First Trust Indxx Innovative Transaction and Process ETF have an expense ratio of 0.65%. This means, for an investment of $10,000, your total cost will be $65.

That’s pretty low for the opportunity to mitigate risks, while at the same time benefiting from the value that blockchain technology is unlocking for the world’s top technology corporations.

6. Grayscale Ethereum Trust (ETHE)

The Grayscale Ethereum Trust is one of the most popular ETFs globally, and for good reason. It gives investors access to Ethereum as a structured investment product, and in a regulated environment.

This is a big deal because Ethereum is one of the fastest-growing cryptocurrencies in the market today. Year-to-date, Ethereum is up by over 700%, and it’s still growing. However, buying Ethereum on exchanges and storing it for yourself is risky, and in one wrong move, you can easily lose all your ETH.

With the Grayscale Ethereum Trust, you do not have to worry about these challenges. That’s because you get access to Ethereum in pretty much the same way you would a security in the stock market.

Another advantage of Grayscale Ethereum Trust is that it can help you invest in Ethereum while also dealing with the resultant tax liabilities more efficiently. That’s because, with the Grayscale Ethereum Trust, you can have your ETH appreciate in a tax-deferred account. You may not enjoy the same benefits when you decide to buy and sell Ethereum in the spot market.

The cost of using the Grayscale Ethereum Trust is affordable too. The expense ratio of using the ETHE ETF is 2.5%. This means the cost of investment on ETHE is $250 for every $10,000 invested.

While this may seem higher than the cost of buying Ethereum on an exchange like Coinbase, several factors make ETHE ETF cheaper. One of them is the fact that, on average, investors trade their ETH every 53-days. On an annualized basis, it makes more sense to buy and trade using the Grayscale Ethereum Trust.

Aside from that, by investing in the Grayscale Ethereum Trust, you can sleep easy knowing that you are in good company. Top names in the investing world, such as Cathy Wood, are invested in crypto using Grayscale. That’s a confidence boost that your investment is safe. These people have access to the best investing information available, and if they chose Grayscale, it’s for a good reason.

68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

7. Pro-Shares Bitcoin ETF (BITO)

The Pro-Shares Bitcoin Strategy ETF is one of the newest yet more famous Bitcoin ETFs. It was approved recently and instantly pushed Bitcoin’s price to a high of $68k.

The excitement the BITO ETF has created in the market has a lot to do with its ability to draw in institutional money. As mentioned earlier, institutional investors have been cautious about buying into Bitcoin directly. That’s because of the risks associated with the purchase process and custody.

The Pro-Shares Bitcoin does not buy into Bitcoin but rather tracks Bitcoin futures. This is perfect for institutions because they get exposure to Bitcoin in the same that they would buy stocks.

By tracking the futures market, the Pro-Shares Bitcoin ETF also gives investors a chance to trade Bitcoin at the best prices in the market. That’s because it is primarily smart money that trades the futures markets. The prices are based on factual data, not just hype and euphoria, as with the spot market.

On top of that, the Pro-Shares Bitcoin ETF is the largest regulated ETF in the U.S today. By extension, this also makes it the most liquid. This means institutional investors can easily get in and out of Bitcoin at the best prices possible. This is efficient compared to the spot market, where huge orders can move the price, and in the process, eat into the investors' returns.

Even with all the benefits that it is giving to investors, the Pro-Shares ETF is affordable. BITO has a yearly expense ratio of 0.95%. This means anyone who invests $10k in it only incurs $95 in fees annually.