Top 10 Crypto Funds to Watch in 2023 & 2024

The recent significant earnings and disastrous losses in the cryptocurrency market have garnered a lot of media attention. However, the technology behind crypto has gotten far less coverage.

Other smaller, more niche firms have centered their business on crypto, while other bigger, stronger public entities have just played with the sector. Either way, blockchain hasn’t found its “killer app” that will make it ubiquitous in business and technology.

That’s why it’s a bad idea to put all your money into the shares of a single, or even a tiny number of, companies that deal with blockchain technology or digital currencies. Therefore, an easier way is to choose a diversified crypto fund. We’ve listed several solid ones right here, in no order of significance.

ProShares Bitcoin Strategy ETF

As the first Bitcoin ETF, a billion dollars were made in its first two days of release, proving its success. This fund invests in Bitcoin futures rather than spot and is thus one of the top options available.

Rather than having traders simply acquire futures contracts, ProShares provides investors with the opportunity to purchase shares. In simple terms, it pools money from investors and then puts it into these futures while also providing them with shares that come back with more.

The ETF may also put its money into BTC futures and other short-term investments like U.S. Treasury Bills. It also can utilize leverage.

What sets it apart from the rest:

  • Buys Bitcoin futures for the next month with a cash settlement. That’s why their journey to maturity is so much shorter.
  • CFTC-regulated

Amplify Transformational Data Sharing ETF

Amplify ETFs is one of the biggest funds dedicated to the crypto market, which has over $400 million in holdings. While it doesn’t put money into cryptocurrencies directly, it’s an excellent starting point for finding the finest ETFs supporting the crypto business.

At least 80 percent of the fund’s net assets are invested in stocks, where they may generate profits. Investments must be made in the stocks of firms creating and using blockchain-based technologies. Because of its active management, the portfolio may be adjusted in real time to reflect market conditions. The last 20% is put into firms that collaborate with BLOK.

This is one of the oldest ETFs on our list, having debuted at the beginning of 2018. The yearly expense ratio is over 0.70%, so investing $2,000 a year will pay over $14 in fees.

What sets it apart from the rest:

  • Placing 80% of the net assets in stocks
  • Real-time portfolio adjustments
  • Over $400 million in holdings

Siren Nasdaq NexGen Economy ETF

The third fund includes firms that promote blockchain or apply it in their own enterprises. It is an index ETF that follows the ^RSBLCN Index results.

Since its inception at the beginning of 2018, it has collected over 60 assets. First, any firm with a market valuation greater than $200 million that meets the definition of a “blockchain enterprise” will be included in the index. It then uses its own unique filtering technique to evaluate each company’s potential for growth with blockchain and then determines its score.

What sets Siren Nasdaq NexGen Economy ETF apart from the rest:

  • You can trade some shares on the stock exchange
  • Includes top, high-value firms

Valkyrie Bitcoin Strategy ETF

One of the latest crypto ETFs introduced last year is Valkyrie. It debuted just several days after ProShares went public. BTF does not put its money into Bitcoin itself. The Cayman Islands branch puts its money into Bitcoin futures. For tax purposes, investors are not required to submit K-1 forms.

The Fund will generally put money into futures trades with costs equal to the entire net assets. Shares are subsequently made available to investors who may purchase, sell, and trade them at the current market value. Investors buy internal shares rather than engaging in the futures or Bitcoin exchange themselves.

What sets it apart from the rest:

  • Only qualified investors should apply
  • There is a 0 % performance-based charge
  • There is a 0.4% charge for management
  • The auditing firm is Cohen & Co.

First Trust Indxx Innovative Transaction & Process ETF

This fund is probably the most diverse crypto ETF on our list, with holdings in more than 100 different equities.

Certain investors who are concerned about the history and credibility of First Trust may feel more at ease knowing that this company is a big, popular organization that has launched a wide variety of investment vehicles. This fund is one of the most cost-effective choices, with an annual expense ratio of 0.65%.

There are benefits and drawbacks to this ETF’s higher diversification. It provides broad exposure to the crypto market and includes several global technology firms that may be difficult for U.S. investors to access directly. It also has lower volatility than many similar cryptocurrency funds.

What sets it apart from the rest:

  • Over 100 different holdings
  • Different investment vehicles
  • Global investment opportunities

Global X Blockchain & Bitcoin Strategy ETF (BITS)

This brand new crypto fund not only holds Bitcoin but also stocks tied to blockchain technology listed on BKCH. Firms providing software solutions, cryptocurrency exchanges, and cryptocurrency mining are all examples of the types of businesses represented by these stocks.

It targets financial advisors, the vast majority of whom prefer stock investing to crypto ETFs. However, it solves the problems of investors more comfortable with futures-only ETFs. Futures trading is useful for this reason.

What sets it apart from the rest:

  • Since futures contracts make up 50% of the fund, they offer a higher correlation to Bitcoin spot prices than blockchain ETFs
  • Available for futures-only dealings

Bitwise 10 Crypto Index Fund

The Bitwise 10 Crypto Index Fund stands out as the only product of its kind here. Internal shares, which were previously only available via a private offering, are now traded publicly. Because of the fund’s active management, the expense ratio is somewhat high, at 2.5 percent.

To keep up with fluctuating prices, the fund rebalances its holdings every month. It invests in the top 10 coins (based on market size). Over ninety percent of the portfolio is staked in BTC and ETH, the two biggest cryptocurrencies by market cap.

Due to its OTC nature, this fund’s stock price could sometimes fall significantly below or above the value of the underlying cryptocurrency holdings. Investors need to use caution. This fund is not for everyone, but it might be a good fit if you wish to invest in the most popular coins.

What sets it apart from the rest:

  • OTC deals with great discounts
  • There are no hidden or additional costs

Purpose Bitcoin ETF

Purpose Bitcoin ETF commenced the journey in early 2020 with close to $600 in assets. The expense ratio is 1%. There is no danger of trading at high premiums over the value of its base bitcoin assets since the ETF immediately buys bitcoin and stores it in cold storage. Compared to trading cryptocurrency via a wallet on a platform such as Coinbase, this method offers higher direct exposure.

What sets it apart from the rest:

  • The first bitcoin ETF
  • Significant amount of holdings
  • Physical cold storage

Galaxy Crypto Index Fund

This fund seeks to replicate the mechanism of the Bloomberg Galaxy Crypto Index. The coins included are weighted predicated on their market cap. Bitcoin and Ether account for a significant share of the overall basket. However, contrary to others, Galaxy limits the investment share to no more than 35% of each currency. This indicates that the combined value of Bitcoin and Ethereum is 70%.

  • A significant share of BTC and ETH in the portfolio
  • Significant diversification

Capital Link Global Fintech Leaders

The AF Global Fintech Leaders index serves as the basis for this cryptocurrency ETF. It monitors firms dealing with digital assets and financial technology. Why is it so unique? How it chooses its partners. Stocks listed in established and emerging markets, which have substantial trading volumes, are the focus of its custom algorithm.

In a nutshell, this algorithm allows us to identify the patterns we need to track and adjust our strategy accordingly, ultimately benefiting all of us as investors.

  • A custom algorithm to identify its partners
  • Net expense ratio of 0.75%