5 Best Crypto ETFs in 2021 – Available in Market to Invest

What are the best crypto ETFs? Using Crypto Exchange Traded Funds or Crypto ETFs is a good way to invest in this space that is full of risks due to the inherent volatility of each type of cryptocurrency.

The primary purpose of the ETFs is to provide the investors with a cushion against the market risks offering a wonderful diversification.

These are also most tax-efficient because these are enlisted on the major exchanges such as NYSE and Nasdaq.

These are not decentralized or unregulated like the cryptocurrencies itself making it more secure.

ETFs also come under SEC or the US Securities and Exchange Commission and follow the regulations laid by The FINRA or The Financial Industry Regulatory Authority.

This offers more safety and inflicts a sense of credibility while investing in cryptocurrencies through ETFs.

In this article, you will find the best Blockchain ETFs that you can use to make an investment in the crypto space. Check out best uses of cryptocurrency.

5 Best Crypto ETFs

Best Crypto ETFs

These are some of the best crypto ETFs that will not be affected much due to the unpredictable nature of the digital assets and also keep your investments safe from cyber attacks.

You can expect higher returns from your investments as these are managed professionally by fund managers while investing in multiple companies using blockchain technologies.

1. Amplify Transformational Data Sharing ETF (NYSEARCA: BLOK)

This ETF, which has been in the market since 2018, functions a bit differently from other ETFs.

It usually does not track an index but still invests a minimum of 80% of its total assets in different stocks and companies engaged in blockchain technologies and its development.

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On the contrary to the functionality of other major ETFs, BLOK focuses on a combination that includes:

  • Value and growth stocks of software and services
  • Diversified financials
  • Media and entertainment industries.

Some of the major holding of this include:

  • MicroStrategy
  • PayPal
  • Square
  • Silvergate Capital Corporation and
  • HIVE Blockchain Technologies.

Other important facts and figures that you should know about this ETF that makes it one of the best include:

  • Its expense ratio of 0.71%
  • An yearly return of 195%
  • More than $1 billion in AUM or Assets Under Management
  • A 52-week low of $12.79
  • A 52-week high of $36.69
  • High liquidity and trades of 270,526 shares a day with an annual dividend yield of $0.66 in each and a
  • Return rate of 92.11%.

2. Reality Shares Nasdaq NexGen Economy ETF (NASDAQ: BLCN)

This particular ETF has also been around since 2018 and tracks the Reality Shares Nasdaq Blockchain Economy Index. It has quite a huge portfolio comprising more than 73 companies which include giants like:

  • Galaxy Digital Holdings
  • Overstock
  • Baidu Inc
  • Micron Technologies and others.

Their portfolio also includes other businesses as well such as multi-service merchant banks that support digital assets to a contributor of integrated circuit microprocessor chips for supercomputing hardware.

Apart from having a diverse portfolio, it also promises a fairly even level of investments between all its holdings. None of the stakes they own weigh more than 2%.

Here are some other facts of BLCN that are good enough to make it one of the best crypto ETFs:

  • Its expense ratio of 0.68%
  • Its Assets Under Management is about $278 million
  • The annual dividend yield is about 0.51% and
  • It has an attractive price point of 19.28x price-to-earnings.
  • It has a 52-week low of $17.55
  • It has a 52-week high of $41.68
  • It trades over 69,473 shares per day and
  • The return rate is 58.66%.
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3. First Trust Indxx Innovative Transaction & Process ETF (NASDAQ: LEGR)

Listed in the Nasdaq stock exchange since 2018, this ETF tracks the Indxx Blockchain Index. This helps it to adjudge the performance of companies and the profitability of them from blockchain technology.

This ETF usually invests at least 90% of its total assets in securities. This makes up the index. It has holdings in about 101 companies of which some are:

  • The Oracle Corporation
  • IBM
  • Nvidia
  • Baidu Inc
  • Micron Technologies
  • Advanced Micro Devices and more.

The funds are invested in a large variety of stocks, most of them belonging to the financial and information technology sectors.

It is also good to know that this ETF has:

  • An expense ratio of 0.65%
  • An Assets Under Management of $81.9 million
  • A year-to-date return of 10.24%
  • A 52-week low of $18.85
  • A 52-week high of $38.09
  • An annual dividend yield of $0.36 per share
  • An annual return rate of 17.9%
  • A total of 3,527 shares traded every day.

4. Purpose Bitcoin ETF (TSX: BTTC)

This cryptocurrency ETF is the first Bitcoin ETF of the world, launched in February 2020 and enlisted in the Toronto Stock Exchange.

The working process of this ETF is also a bit different. It purchases and holds the coins, instead of trading these at large premiums, to its value underlying Bitcoin holdings.

This allows the investors to get a lot of direct exposure without needing to purchase and sell crypto directly.

It also allows the investors to make the most out of the price appreciation of Bitcoin without having to worry about its security and management, the two most important aspects taken care of by the experts.

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As of now, it has an Assets Under Management of $1.3 billion and has a Management Expense Ratio or MER of 1.5%.

The good thing is that when the MER falls below this level, the savings are passed to the investors.

5. Innovation Shares NextGen Protocol ETF (NYSEARCA: KOIN)

This particular FTF also started trading in 2018 and currently has holdings in about 45 companies that offer a lot of diversification while investing. Some of the major names in its portfolio include and is not limited to:

  • Nvidia
  • Intel
  • PayPal
  • Microsoft Corporation
  • Visa Inc and more.

Tracking the Innovation Labs Blockchain Innovators Index, this ETF is known to have the following:

  • An expense ratio of 0.95%
  • A weighted standard market cap of $294.67 billion
  • An annual dividend yield of 0.39% per share
  • An Assets Under Management of $26.65 million
  • A year-to-date-return of 8.61%
  • A 52-week low of $20.54
  • A 52-week high of $38.34 and
  • An annual return rate of 30.85% on more than 19,404 shares traded per day.

Conclusion

Crypto ETFs or Exchange Traded Funds minimize the risks involved in trading and at the same time offer more rewards. These ETFs happen to be the best introductions to the crypto market with its increased regulations imposed.