If you're looking for cryptocurrency ETFs to invest in but don't know how to choose them, this guide will help. Since blockchain-based ETFs are relatively new, the market offers limited options. Here are the key factors to consider when selecting a crypto ETF:
Key Selection Criteria
- Management Fees – Lower fees mean higher net returns.
- Diversity – Broad holdings reduce risk.
- Methodology – Transparent investment strategies indicate credibility.
- Market Understanding – ETFs should demonstrate sector expertise.
Top 3 Cryptocurrency ETFs
1. Amplify Transformational Data Sharing ETF (BLOK)
- Focus: 80% allocation to blockchain technology companies.
- Holdings: 44 companies, including MicroStrategy and PayPal.
- Performance: $1.04B AUM, 0.71% expense ratio, 195% 1-year return (2021).
- Market Cap Distribution: Primarily large-cap with smaller mid/small-cap allocations.
👉 Explore blockchain investment opportunities
2. First Trust Indxx Innovative Transaction & Process ETF (LEGR)
- Index Tracked: Indxx Blockchain Index (90%+ net assets in blockchain firms).
- Holdings: 100+ companies like Microsoft and NVIDIA.
- Performance: $117.7M AUM, 0.65% expense ratio.
3. Reality Shares Nasdaq NexGen Economy ETF (BLCN)
- Index Tracked: Nasdaq Blockchain Economy Index.
- Holdings: 74 companies, including Coinbase and Accenture.
- Diversity: No holding exceeds 2% weight.
- Performance: $284.6M AUM, 0.68% expense ratio.
Additional ETF Options
- KOIN: Focuses on blockchain adoption.
- BTCC: First Bitcoin futures ETF (Canada).
👉 Diversify your crypto portfolio
FAQ
Q1: Are cryptocurrency ETFs safe?
A1: While diversified ETFs mitigate risk, crypto volatility remains. Research each ETF’s holdings and strategy.
Q2: What’s the average ETF management fee?
A2: Typically 0.65%–0.75%. Lower-cost ETFs are preferable for long-term holdings.
Q3: How do I buy these ETFs?
A3: Purchase through brokerage accounts like Fidelity or Schwab, using their ticker symbols (BLOK, LEGR, etc.).
Disclaimer
This content is for informational purposes only and does not constitute financial advice. Always conduct independent research before investing.