The purpose of this article is to consider the Best Crypto ETF of 2024. It also identifies their distinct features and performance measures, as well as how they can fit into an overall diversified investment strategy.
If you’re thinking about investing in crypto but are unsure where to start due to the numerous available options, consider a cryptocurrency ETF (exchange-traded fund).
A cryptocurrency ETF offers exposure to various digital currencies and the underlying technology – blockchain. Since cryptocurrencies can be very volatile, it may be prudent to diversify your investment portfolio with an ETF.
Having this information on top-performing crypto ETFS will equip investors with the knowledge they need to make decisions in a complex world of financial technology.
ETF Key Features Table
| ETF Name | Key Features |
|---|---|
| Grayscale Bitcoin Trust ETF | – Holds Bitcoin directly – Provides indirect exposure to Bitcoin price movements |
| Valkyrie | – Actively managed – Focuses on cryptocurrencies and blockchain technology companies |
| Siren Nasdaq NexGen Economy ETF | – Tracks the Siren Nasdaq Blockchain Economy Index – Invests in companies using blockchain |
| First Trust Indxx Innovative Transaction & Process ETF | – Tracks the Indxx Blockchain Index – Focuses on blockchain technology and digital payments |
| VanEck Digital Transformation ETF (DAPP) | – Diversified exposure – Tracks an index of multiple cryptocurrencies |
| Global X | – Various ETFs including blockchain and digital assets – Thematic investment strategies |
| Fidelity Advantage Bitcoin ETF (FBTC) | – Direct exposure to Bitcoin – Offered by BlockFi, a digital asset lender and manager |
| ProShares | – Variety of crypto-focused ETFs – Includes Bitcoin Strategy ETF, focusing on futures |
| Bitwise Crypto Industry Innovators ETF | – Tracks Bitwise Crypto Innovators 30 Index – Focuses on companies in the crypto sector |
| Amplify Transformational Data Sharing ETF | – Invests in blockchain technology companies – Seeks growth opportunities in data sharing |
10 Best Crypto ETF In 2024
1. Grayscale Bitcoin Trust ETF
This year, the Grayscale Bitcoin Trust ETF (GBTC) is still the number one ETF in the market. It allows investors to gain exposure to Bitcoin and profit from its price movements without actually owning any cryptocurrency at all.
Having been around for a long time as one of the earliest and most trusted investment products related to Bitcoins, GBTC boasts high levels of trustworthiness and dependability.
Its performance depends directly on how much bitcoins cost; therefore, it remains among the top picks for retail customers who wish to diversify their digital asset portfolios along with institutional ones.
2. Valkyrie
Valkyrie has made significant strides this year as they are known for their aggressive approach towards investing in cryptocurrencies.
The company’s Valkyrie Bitcoin Strategy ETF focuses primarily on futures contracts linked with bitcoins, thereby providing investors an opportunity to participate in growth within crypto markets under regulation.
Futures allow such a setup because the risk-reward ratio differs when dealing with spot investments, where one buys actual coins.
At the same time, here, individuals take advantage of volatility, which comes along with positions’ changes over time due to future deliveries being priced according to current expectations about what might happen next instead of simply purchasing the asset itself on the spot basis, as most do nowadays.
This ETF was created specifically for people who want exposure to Bitcoin’s volatility coupled with upside potential but still need guidance managing these assets from Valkyrie experts themselves.
3. Siren Nasdaq NexGen Economy ETF
The Siren Nasdaq NexGen Economy ETF (BLCN) targets blockchain technology innovators. In 2024, the fund has taken a more diversified approach by investing across various companies that integrate blockchain into their businesses.
BLCN includes firms from different sectors such as finance, technology, and healthcare to show how wide-reaching this distributed ledger can be used even outside cryptocurrencies – making it attractive for those looking beyond them, too, who want exposure to a growing world where every transaction gets recorded digitally forever.
4. First Trust Indxx Innovative Transaction & Process ETF
The initial trust index, the new age transaction & handling fund (LEGR), follows the Indxx Blockchain Index, which is composed of companies that apply blockchain technology in their operations.
It will remain an attractive option for investors who want to look beyond digital currencies for broader uses of this transformative technology, even in 2024.
This fund is diversified across many industries so as not to concentrate on any one industry, thus ensuring investments are made into different sectors where blockchains can change everything. Long-term growth seekers through technological innovation find this ET interesting.
5. VanEck Digital Transformation ETF (DAPP)
Investments in blockchain-based digital transformation technology have made the VanEck Digital Transformation ETF (DAPP) a standout in the investment industry this year.
The DAPP focuses on companies that lead digital change through blockchain, with their investments being centered around businesses working on projects related to digital assets as well as those supporting cryptocurrencies such as exchanges, among others.
Hence, it offers diversified exposure to different areas of growth within the digital economy.
This fund is meant for investors who want an innovative and fast-moving sector like digital assets since it provides a mix of established players shaping finance today alongside newer ones that could shape tomorrow, too.
The DAPP features high-growth enterprises strategically chosen, thus presenting itself as one of the most compelling opportunities available for anyone willing to bet on long-term success stories related to blockchains and crypto technologies.
6 . Global X
In 2024, there were more selections added to Global X’s Exchange Traded Funds list, including but not limited to Global BlockChain and Bitcoin Strategy, Etf.
Investments here are made both directly into Bitcoin and through future contracts tied up with Bitcoins so that these two components can work together seamlessly under one roof provided by them.
Technological advancements brought forth by blockchains have been combined alongside financial opportunities offered by bitcoins through futures contracts, thus making Global X another good candidate for people looking at gaining exposure across multiple corners within digital economies, which seem likely to increase over time
7. Fidelity Advantage Bitcoin ETF (FBTC)
The Fidelity Advantage Bitcoin ETF (FBTC) has established itself as a prominent option for investors looking to gain direct exposure to Bitcoin in 2024. Managed by Fidelity, one of the most reputable names in the financial industry, FBTC offers a secure and regulated way to invest in Bitcoin without the need for digital wallets or private keys
The ETF invests directly in Bitcoin, aiming to track its price movements closely. This makes FBTC an attractive option for both institutional and retail investors seeking to participate in the cryptocurrency market while benefiting from Fidelity’s extensive experience and robust infrastructure.
The ETF’s simplicity and focus on Bitcoin make it a go-to choice for those looking to capitalize on the potential growth of the world’s leading cryptocurrency.
It invests solely in bitcoins, giving it a pure-play status for those who want capital appreciation, which results from the rise in the price of this cryptocurrency alone.
The fund is designed for investors who prefer an easy way to gain direct exposure to BTC without having to worry about managing digital wallets or private keys, which may be complex.
8. ProShares
In 2024, ProShares continues its trend as an industry leader when it comes to creating new financial products tied with cryptocurrencies like bitcoin (BTC).
The company launched its futures-backed exchange-traded fund called ProShares Bitcoin Strategy ETF.
This ETF primarily focuses on futures contracts related to bitcoins, thus allowing people who trade these derivatives to gain exposure toward changes in value even if they don’t hold any actual coins themselves.
Such an approach makes this investment vehicle convenient since all necessary regulatory requirements have been met, making them attractive for both institutional and retail investors interested in playing around volatile markets managed by such businesses based on experience managing ETFs.
This adds another level of confidence while dealing during turbulent times within the crypto sector.
9. Bitwise Crypto Industry Innovators ETF
BITQ or Bitwise Crypto Industry Innovators Etf has attracted many investors in 2024 by concentrating on businesses responsible for driving innovation within the crypto sphere as well as the mass adoption of virtual currencies and blockchain technology worldwide, according to the latest news reports.
Bitwise’s BITQ keeps an eye out only for companies involved directly with digital assets, such as exchanges where people buy/sell different types of coins like bitcoin, among others; mining firms that create new tokens through solving complex mathematical problems; software developers who build applications using distributed ledger systems running off Ethereum platform, etc.
Investors can, therefore, participate in growth surrounding these areas without necessarily having large sums of money tied up buying into individual cryptocurrencies themselves, which may be risky at times, especially if one doesn’t know what they are doing.
10. Amplify Transformational Data Sharing ETF
The Amplify Transformational Data Sharing ETF (BLOK) will remain a crucial player in the blockchain investment space in 2024. BLOK invests in companies that are involved in the development and utilization of blockchain technology.
Its portfolio includes a mix of pure blockchain companies and large corporations that are integrating blockchain into their business models.
This ETF provides diversified exposure to the blockchain sector, making it an attractive choice for investors looking to benefit from the widespread adoption and transformative potential of blockchain technology.
How to Select a Good Crypto ETF?
Several essential factors need careful consideration when choosing a suitable Cryptocurrency Exchange Traded Fund (ETF).
First and foremost, one should analyze what assets underlie it and what kind of exposure they give you – do some track just BTC or ETH? Or maybe offer a broad-range basket with many different altcoins inside?
Another thing worth taking into account is the expense ratio: sometimes fees charged by management companies can eat up a significant part, if not all, of potential returns over time, so keep an eye on this! Liquidity matters, too – higher volumes usually mean better liquidity, which makes buying/selling shares easier for everyone involved.
Moreover, past performance history, together with volatility, should not be ignored as these indicators provide insights into past behavior patterns along with possible future risks associated with the particular instruments being considered for investment purposes, regulatory compliance, and the reputation of both the fund itself and its manager must comply with; all legal, requirements and rules; otherwise, investors min might find themselves participating in illegal activities unknowingly led by unscrupulous individuals who have no experience what, soever managing such funds – therefore, always verify credentials before committing any money here.
Digging deep enough based upon those elements mentioned will help us find top-rated cryptos according to our risk appetite level as well as personal financial goals.
Conclusion
Cryptocurrency ETFs are necessary for this ever-changing type of asset because they enable people to use regular investment tools in order to get digital currencies.
In 2024, the top ten crypto ETFs offer many options, such as single-asset funds or diversified portfolios that cater to various risk appetites and investment horizons.
It is, therefore, necessary that we understand each one’s underlying assets, fee structures, liquidity provisions, or regulatory compliances so that we can make better choices aligned with our financial objectives when investing with them.
The selection process must take cognizance of these factors even though markets are volatile by nature; thus, strategic selection of crypto ETFs might represent a balanced approach towards gaining exposure within a dynamic sector like this while ensuring the overall success rate remains reasonably high at all times Wherever possible, undertaking thorough research based on good diligence practices before venturing into an exciting yet complex world characterized by cryptocurrency investments.
