Stable Crypto ETFs: Reduce Risk & Invest in Digital Assets

By investing in top cryptocurrency ETFs, investors can avoid the hefty fees on exchanges

Volatility! A word that describes the cryptocurrency market very well. Since Bitcoin came into existence in 2009, people’s interest in cryptocurrency kept growing. However, that doesn’t neglect the volatility of the market. Despite the high adoption, bitcoin still faced heavy price falls constantly. Today, there are thousands of digital currencies available in the market. Besides Bitcoin, other cryptocurrencies like Ethereum, Litecoin, Dogecoin, Tether, etc are also performing well. But one thing they all have in common is their unsettling price. Therefore, crypto investors have to constantly keep a tab on their investment to make sure they are not hitting the rock bottom. Fortunately, there is an exit door. Instead of buying digital currencies, crypto investors can invest in the relatively popular cryptocurrency ETFs. Cryptocurrency ETFs (exchange-traded funds) consist of a plethora of companies that develop technologies for enabling smooth cryptocurrency trading. They provide secure and reliable diversification across different digital currencies. By investing in top cryptocurrency ETFs, investors can avoid the hefty fees on exchanges and wallets. For passive investors who don’t want to constantly check price changes, cryptocurrency ETFs are the best option. They support you with a cushion against risk and volatility. Analytics Insight has listed top cryptocurrency ETFs that crypto investors should take into consideration in 2021.

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Top Cryptocurrency ETFs in 2021

Amplify Transformational Data Sharing

Since 2018, Amplify Transformational Data Sharing (BLOK) has been doing well in the market. The ETF invests at least 80% of its net assets in stocks engaged in the development of blockchain technologies and cryptocurrency trading. Instead of tracking an index, Amplify Transformational Data Sharing focuses on a mix of 55 value and growth stocks within the software and services, media and entertainment, and other financially diversified industries. The ETF has an expense ratio of 0.70% and has assets under management (AUM) of US$365 million.

Grayscale Bitcoin Investment Trust

Grayscale Bitcoin Investment Trust was one of the first platforms that offered the taste of bitcoin to its investors. However, GBTC can’t be taken into consideration as a complete ETF. Rather it is more or less an ETN that carries potential counterparty risks. According to the company, the ETF enables investors to gain exposure to the price movement of bitcoin through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping bitcoins. Besides, GBTC allows accredited investors to buy into the fund through periodic private placements, with a 20% premium and a 2% fee.

CI Galaxy Bitcoin

CI Galaxy Bitcoin became the third cryptocurrency ETF to expose Canadians to Bitcoin trading. The platform launched in Canada on the Toronto Stock Exchange leveraged a way for investors to get their hands on cold storage, just like its two predecessors. Since BTCX came to the market late, in order to boost its presence, the platform has kept the fee a category low at 0.40%. BTCX is also popular among Americans.

Reality Shares Nasdaq NexGen Economy 

With over 74 top companies in its portfolio, Reality Shares Nasdaq NexGen Economy (BLCN) tracks the price changes in the blockchain and cryptocurrency market. Unlike many other ETFs that focus solely on cryptocurrency trading and companies, BLCN has a diverse collection of companies from various industries and sectors. The selection range from multi-service merchant banks supporting digital assets to a provider of integrated circuit microprocessors for supercomputing hardware.

Siren Nasdaq NeGen Economy 

Siren Nasdaq NexGen Economy (BLCN) is a crypto ETF that is more interested in tracking blockchain changes and investing in front-running companies. It gauges the performance of companies involved in developing, researching, supporting, innovating, or utilizing blockchain technology. In order to keep away, sudden price falls, the ETF follows a mixed rule by investing in diverse growth and value stocks. Coinbase Global Inc, Square Inc, and MicroStrategy Inc are BLCN’s top three holdings in the market.

First Trust Indxx Innovative Transaction & Process 

Alike BLCN, First Trust Indxx Innovative Transaction & Process (LEGR) also focuses on blockchain stocks. The company invests in market players who actively utilize, invest in, develop, and have products for the improvement of blockchain technology. The ETF invests a minimum of 90% of its net assets in equity securities that comprise the index and has a total of 100 holdings. It excludes cash, which mostly operates in the information technology and financial industries.

VanEck Vectors Digital Transformaiton

VanEck Vectors Digital Transformation (DAPP) is a recently launched ETF that is rallying at good growth in the market. It tracks the MVIS Global Digital Assets Equity Index, which constitutes companies that are interested and doing well in the digital assets economy. With over 26 profitable stocks, DAPP has garnered a value of US$24.5 million in a short span. Galaxy Digital, Square, Voyager Digital, NVIDIA, PayPal, Marathon Digital, MicroStrategy, and Taiwan Semiconductor are top holding s of DAPP.