What Are The Top Blockchain ETFs For Investors?

What Are The Top Blockchain ETFs For Investors?

By Yash

Many new avenues of investing your money in the financial markets have recently opened up. Some investors have opted for the traditional method of investing in mutual funds, bonds, and shares. But there are many new investors in the financial markets who show greater interest in cryptocurrencies. In the past few years, there has been a new investment vehicle in this sphere, which are the top blockchain ETFs for investors. These exchange-traded funds are securities that function in a similar manner to mutual funds. It couples various stocks and funds into one asset that can be traded profitably among the investors. When seen in theory, this kind of bundling can cause more diversified portfolios and decrease the amount of risk held by the investors. But unlike the mutual funds, ETFs can be sold and purchased on financial exchanges throughout the trading hours.


The investment brokers have been enticing people to invest in the top blockchain ETFs for investors and firms operating in this sphere and approved by the Securities and Exchange Commission. This is because of the increasing popularity of cryptocurrencies. These are decentralized currencies and are not easy to get hold of through the usual financial channels. Right now, people who think that cryptocurrencies are great investments must buy coins through cryptocurrency exchange platforms. That is a major hindrance to starting to invest in this sphere for many people. Most individuals are used to trading through the various central exchanges located around the globe. The development of the top blockchain ETFs could be a way to circumvent that barrier. But presently, the securities and exchange commission has not been readily approving these instruments that are directly invested in such currencies.


A few ETFs have gained the commission's stamp. They are only some time away from starting their operations. This includes funds that will permit people to invest in cryptocurrency futures contracts or in firms that hold the assets of cryptocurrencies. The accredited investors also have the choice to trade the funds that are directly invested in cryptocurrencies in over-the-counter exchanges. Many more such instruments related to cryptocurrencies are likely to appear in the future. In this article, we will look at some of the top blockchain ETFs for investors at present.


1. ProShares Bitcoin Strategy ETF


This exchange-traded fund is the initial bitcoin-linked instrument in the United States of America. It started trading a couple of years ago. This instrument gives people the chance to get exposed to Bitcoin without directly having any ownership of the cryptocurrency. The instrument does not invest in any cryptocurrency directly. On the contrary, the fund looks to give returns through exposure to the futures contracts of Bitcoin. The investors of this fund may look into it as a replacement for real assets such as gold and various other commodities. It is also an alternative to the usual currency instruments. It can also be used as a hedge against inflation. The fund has more than a billion net assets and an expense ratio of nearly one percent. This is the cost of one dollar for every hundred dollars invested.


2. Grayscale Bitcoin Trust


This instrument is one of the initial investment vehicles to get value only from the cost of Bitcoin in the market. Since the instrument's launch nearly a decade ago, it has given a return of nearly thirty thousand percent to investors. The funds have nearly thirty billion dollars in assets under management. This makes it one of the biggest crypto funds in the financial market. It utilizes the CoinDesk Bitcoin Price Index as the benchmark. The trust is quite open to direct investments by investors that are accredited by putting up an investment of more than forty thousand dollars. But any retail investors can get access to the instrument on a secondary test market using online brokers. The fund may also incur some miscellaneous expenses apart from the annual expense ratio of nearly two percent. It is one of the top blockchain ETFs.


3. Grayscale Ethereum Trust


Like the instrument described above, this firm gives another fund focused on one of the biggest cryptocurrencies on the entire market: Ethereum. The fund gets its value from the cost of the token of Ethereum, that is, Ether. It follows the CoinDesk Ether Price Index as the benchmark. The fund passively invests in the token. It permits investors to get exposure to the famous cryptocurrency without thinking about purchasing it directly, storing it, or safeguarding it. The token has more than nine billion of its assets under management and an expense ratio of two-and-a-half percent.


4. Bitwise 10 Crypto Index Fund


This instrument is an exchange-traded fund that gives diversified exposure to the most valued cryptocurrencies according to their market capitalization. The instrument is weighed towards the biggest cryptocurrencies. More than sixty percent of it is allocated towards Bitcoin, and more than twenty-five percent is allocated to Ethereum. But there are other famous altcoins in the portfolio. This includes Polygon, Polkadot, Avalanche, Cardano, and Solana. The funds have more than eight hundred million in assets under management. The expense ratio is two-and-a-half percent.


5. Valkyrie Bitcoin Strategy ETF


This fund is listed on the Nasdaq and is actively managed. It mainly invests in the futures contracts of Bitcoin. A portion of the fund has corporate bonds, Treasuries, or cash for the function of liquidity. The fund's portfolio allocation is geared mainly towards Bitcoin futures and Treasury bills. The fund has net assets of nearly fifty million dollars and has a total expense ratio of under one percent. This makes this instrument less liquid and smaller than many others in the market. But what makes this fund special is the asset management firm that looks after it. The firm has great expenses in managing digital assets. It is highly committed to expanding its access and investing in various asset classes.


6. Global X Blockchain & Bitcoin Strategy ETF 


This is another of the top blockchain ETFs for investors that permits people to access Bitcoin through a regulated futures market. This instrument is much smaller than the other ones. It has an asset that is valued at under eight million dollars. The instrument does not directly invest in any blockchain firms or Bitcoin. The instrument invests in listed Bitcoin futures contracts in the country and gets exposure to firms through other ETFs. This strategy gives the investors a lot of exposure to other disruptive firms that function with digital assets and blockchain tech. The expense ratio of this firm is 0.7%.



The top blockchain ETFs for investors put another spin on investing in the cryptocurrency sphere in the financial markets. The number of crypto-related investments and cryptocurrencies on the financial markets is growing daily. Instead of taking a high risk by investing a lot of money on a single crypto investment, investing in one of the top blockchain ETFs for investors permits investors to get easy access to crypt assets while managing their risk through the diversified properties of the ETF. The investments of each fund are linked to blockchain tech or digital assets to various degrees. But the future of the top blockchain ETFs for investors is linked to the performance of the main cryptocurrencies such as Ether and Bitcoin. There are a lot of cryptocurrency-themed instruments in the financial markets. But you should keep in mind that they charge a lot of fees to manage these funds. We hope you will invest in some of the top blockchains ETFs mentioned here.