Crypto ETFs: Investing in Cryptocurrency Funds

If you’re looking for an easy way to invest in the fast-growing cryptocurrency market without directly buying digital assets, Crypto ETFs offer the perfect solution. These funds allow you to gain exposure to the crypto sector through a diversified portfolio of crypto-related companies, all while being traded like traditional stocks. With a range of options, from blockchain technology to digital payments, you can tailor your investment to your risk tolerance and financial goals. At Threenvest, we guide you through everything you need to know to make informed crypto ETF investments.

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What is a Crypto ETF?

A Crypto ETF (Exchange-Traded Fund) is a type of investment fund that tracks the performance of cryptocurrencies or companies involved in the cryptocurrency industry. Unlike buying individual cryptocurrencies, investing in a Crypto ETF allows you to gain exposure to a diversified basket of crypto assets or related stocks, offering the ease of trading like regular stocks on an exchange. Crypto ETFs provide a way to invest in the volatile crypto market while benefiting from the relative stability and convenience of ETFs.

10 best cryptocurrencies ETFs

  • iShares Blockchain and Tech ETF (IBLC)
  • Schwab Crypto Thematic ETF (STCE)
  • Fidelity Crypto Industry and Digital Payments ETF (FDIG)
  • Amplify Transformational Data Sharing ETF (BLOK)
  • VanEck Digital Transformation ETF (DAPP)
  • Bitwise Crypto Industry Innovators ETF (BITQ)
  • Global X Blockchain ETF (BKCH)
  • Siren Nasdaq NexGen Economy ETF (BLCN)
  • First Trust Indxx Innovative Transaction & Process ETF (LEGR)
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ETF NameTickerFocusExpense RatioTop Holdings
iShares Blockchain and Tech ETFIBLCBlockchain and technology0.47%Coinbase, Nvidia
Schwab Crypto Thematic ETFSTCECrypto-related companies0.30%Block, MicroStrategy
Fidelity Crypto Industry and Digital Payments ETFFDIGCrypto industry and digital payments0.39%Coinbase, PayPal
Amplify Transformational Data Sharing ETFBLOKBlockchain technology0.71%MicroStrategy, Square
VanEck Digital Transformation ETFDAPPDigital assets and crypto infrastructure0.50%Coinbase, Marathon Digital
Bitwise Crypto Industry Innovators ETFBITQCrypto innovators and industry leaders0.85%Coinbase, MicroStrategy
Global X Blockchain ETFBKCHCompanies in blockchain and crypto technologies0.50%Riot Blockchain, Marathon Digital
Siren Nasdaq NexGen Economy ETFBLCNBlockchain technology0.68%Coinbase, Marathon Digital
First Trust Indxx Innovative Transaction & Process ETFLEGRBlockchain and fintech innovation0.65%IBM, Nvidia

Best cryptocurrency etfs

iShares Blockchain and Tech ETF (IBLC)

The iShares Blockchain and Tech ETF (IBLC) is designed to provide exposure to companies involved in blockchain technology and related innovations. This ETF includes a mix of companies that either actively develop blockchain technology or significantly benefit from its advancement. It aims to capitalize on the growing adoption of blockchain across various industries. The fund has a diversified portfolio, including major players like Coinbase and Nvidia, offering a balance between high-growth potential and exposure to cutting-edge technology. The expense ratio for this ETF is relatively competitive at 0.47%, making it a cost-effective choice for investors looking to invest in the blockchain sector.

Schwab Crypto Thematic ETF (STCE)

The Schwab Crypto Thematic ETF (STCE) is designed to offer broad exposure to companies that are heavily involved in the cryptocurrency and blockchain industries. This ETF focuses on firms that either facilitate the digital asset economy or are pioneering in the development of related technologies. Key holdings often include companies like Block (formerly Square) and MicroStrategy, which are at the forefront of integrating crypto into financial services and investment strategies. With a low expense ratio of 0.30%, STCE is an affordable option for investors looking to capitalize on the growth of the crypto sector while diversifying their portfolios with companies that are leading the digital finance revolution.

Fidelity Crypto Industry and Digital Payments ETF (FDIG)

The Fidelity Crypto Industry and Digital Payments ETF (FDIG) focuses on companies that are deeply embedded in the cryptocurrency industry and digital payments ecosystem. This ETF targets firms that are driving the development of digital assets, blockchain technology, and payment innovations. Key holdings often include Coinbase and PayPal, reflecting its emphasis on both cryptocurrency trading platforms and digital payment systems. With an expense ratio of 0.39%, FDIG offers a balanced, cost-effective approach to investing in the evolving digital finance landscape.

Amplify Transformational Data Sharing ETF (BLOK)

The Amplify Transformational Data Sharing ETF (BLOK) is a pioneering fund focused on companies that are deeply involved in blockchain technology and transformational data sharing. Unlike some other ETFs, BLOK takes an active management approach, allowing it to strategically select companies that are leading innovation in blockchain. This ETF’s portfolio includes companies like MicroStrategy and Square, which are major players in the blockchain space. BLOK has an expense ratio of 0.71%, reflecting its active management and specialized focus on blockchain technology.

VanEck Digital Transformation ETF (DAPP)

The VanEck Digital Transformation ETF (DAPP) is focused on companies that are central to the digital transformation, particularly within the cryptocurrency and blockchain sectors. This ETF includes firms that are deeply involved in the development, operation, or investment in digital assets and infrastructure. Notable holdings include Coinbase and Marathon Digital, which are key players in crypto trading and mining, respectively. With an expense ratio of 0.50%, DAPP provides targeted exposure to the expanding digital asset ecosystem.

Bitwise Crypto Industry Innovators ETF (BITQ)

The Bitwise Crypto Industry Innovators ETF (BITQ) is designed to track companies that are leaders in the crypto industry. This ETF primarily focuses on firms that derive a significant portion of their revenue from the crypto sector, including businesses involved in crypto mining, trading, and financial services. Prominent holdings include Coinbase and MicroStrategy, both key players in the cryptocurrency market. With a higher expense ratio of 0.85%, BITQ offers targeted exposure to high-growth innovators within the crypto space.

Global X Blockchain ETF (BKCH)

The Global X Blockchain ETF (BKCH) is designed to provide exposure to companies that are actively involved in the blockchain and cryptocurrency sectors. This ETF invests in firms that develop, innovate, or utilize blockchain technology, including those involved in crypto mining and blockchain services. Notable holdings include Riot Blockchain and Marathon Digital, which are significant players in the Bitcoin mining industry. BKCH has an expense ratio of 0.50%, making it a solid option for investors seeking focused exposure to the blockchain industry.

Siren Nasdaq NexGen Economy ETF (BLCN)

The Siren Nasdaq NexGen Economy ETF (BLCN) is focused on companies that are at the forefront of blockchain innovation and the next generation of the digital economy. This ETF includes firms that are actively researching, developing, and utilizing blockchain technology. Key holdings often include companies like Coinbase and Marathon Digital, reflecting its focus on both blockchain infrastructure and cryptocurrency services. BLCN has an expense ratio of 0.68%, making it a compelling option for those looking to invest in the blockchain revolution.

First Trust Indxx Innovative Transaction & Process ETF (LEGR)

The First Trust Indxx Innovative Transaction & Process ETF (LEGR) is focused on companies that are innovating in blockchain technology and transaction processes. This ETF tracks an index of firms that are developing or implementing blockchain solutions across various industries, emphasizing the technological and financial sectors. Key holdings include IBM and Nvidia, both of which are leaders in blockchain development and integration. LEGR has an expense ratio of 0.65%, offering investors a way to gain exposure to blockchain innovation across multiple sectors.

Conclusion

Investing in Crypto ETFs is a strategic way to enter the cryptocurrency market with diversified exposure and reduced risk. By choosing a Crypto ETF, you can benefit from the growth potential of the crypto industry while leveraging the stability of a managed fund. Whether you’re interested in blockchain technology, digital payments, or innovative transaction processes, there’s a Crypto ETF tailored to your needs. As you consider adding Crypto ETFs to your portfolio, ensure you understand the specific focus and risks of each fund to make informed decisions.

Crypto ETFs FAQs

Crypto ETFs provide diversified exposure to the cryptocurrency market, reducing risk compared to individual crypto investments.

Crypto ETFs offer a diversified portfolio of crypto-related assets, trading like a stock on traditional exchanges, whereas individual cryptocurrencies are direct purchases of digital assets.

Crypto ETFs are subject to market volatility, regulatory changes, and the inherent risks of the underlying assets.