In this article, you will learn what is the list of best crypto ETFs for 2023. A cryptocurrency ETF is a financial product that allows investors to gain exposure to crypto-assets through a normal stock brokerage account. ETF stands for “exchange-traded fund.”
What is the List of Best Crypto ETFs for 2023?
Here's a list of seven cryptocurrency ETFs to consider for 2023:
1. Amplify Transformational Data Sharing ETF
With $955 million in assets under management as of spring 2022. the Amplify Transformational Data Sharing ETF is one of the largest funds focused on the cryptocurrency and digital asset economy. It's a good choice to begin a search for the best crypto industry ETFs, although it doesn't directly invest in cryptocurrencies. The fund has a 0.71% annual expense ratio, meaning $7.10 in fees are deducted from the fund's performance each year for a $1.000 investment.
2. Bitwise 10 Crypto Index Fund
The Bitwise 10 Crypto Index Fund is a unique offering on this list. It was originally a private placement fund, but shares can now be bought and sold over the counter. The fund is actively managed, so it has a hefty expense ratio of 2.5% (or $25 in annualized deducted fees from fund performance per $1.000 invested).
3. Siren Nasdaq NexGen Economy ETF
The Siren Nasdaq NexGen Economy ETF is another fund that focuses on companies developing and utilizing blockchain technology. Its assets under management are far smaller than Amplify's similar ETF product, but it does provide a slightly different take on this space.
4. First Trust Indxx Innovative Transaction & Process ETF
The First Trust Indxx Innovative Transaction & Process ETF is another broad bet on crypto. The fund contains 103 stocks, making it the most diversified crypto ETF listed here. First Trust is also a large and well-established company that has created all sorts of investment products, which might check the box for some investors worried about track record and fund manager reputation. The First Trust Indxx Innovative Transaction & Process ETF has an annual expense ratio of 0.65%, making it one of the more affordable options on the market.
5. Bitwise Crypto Industry Innovators ETF
The Bitwise Crypto Industry Innovators ETF was launched in May 2021. making it a relative newcomer to the crypto fund party. It contains just 30 stocks, with holdings focused on innovators and crypto pioneers. As a result, it's likely this ETF will exhibit some of the wild swings in value inherent in crypto prices. It also has a relatively high annual expense ratio of 0.85%.
6. Global X Blockchain ETF
The Global X Blockchain ETF believes blockchain technology has uses far beyond just cryptocurrencies. It invests accordingly into 25 tech and Bitcoin mining stocks that are leading the charge in the world of crypto and underlying blockchain technology.
7. Global X Blockchain & Bitcoin Strategy ETF
The Global X Blockchain & Bitcoin Strategy ETF, launched in November 2021. is closely affiliated with the Global X Blockchain fund, comprising almost half of the underlying holdings (46% as of spring 2022). But what makes the new ETF investment different is that the other half of the portfolio is invested in Bitcoin futures.
Investing in Cryptocurrency ETFs
U.S.-based investors are still waiting on the Securities and Exchange Commission (SEC) to approve a Bitcoin ETF that invests directly in the original cryptocurrency. The same goes for other cryptocurrencies. Consequently, ETF options that invest directly in crypto are fairly limited at this point. Alternatives that invest in Bitcoin futures contracts such as the Grayscale Bitcoin Trust (OTC:GBTC) are available, but there are special risks to consider with those types of investment vehicles.
Not to worry, though. More cryptocurrency ETFs have emerged in recent years to meet the growing demand for crypto and more general blockchain technology investing. So, you will need to know about what is the list of crypto ETFs for 2023.
