Gate.io Blog What Is The Best Cryptocurrency ETF?

What Is The Best Cryptocurrency ETF?

27 August 10:11

If you’re looking for crypto coin ETFs to invest in but don’t know how to go about choosing them, let me walk you through it. Since the concept of cryptocurrency/blockchain ETFs is pretty recent, there are very few players to choose from.

While choosing the ETFs, the two main things that you need to consider are the management fee charged and the diversity of the ETF. These two are the primary factors that can dictate how much your returns are going to be.

Besides these, you also need to understand how authentic or credible the ETFs are and the kind of methodology they use while investing in different company securities. These determine how logical their process is and if they understand the market.

So here’s a list of the top 3 cryptocurrency ETFs in 2021.

Amplify Transformational Data Sharing ETF (BLOK)

BLOK invests 80% of its net assets in companies involved in developing and utilizing blockchain technologies.

As of when I write this article, BLOK has 44 holdings in its name, and its net assets value up to $1,042,803,366, making the assets under management (AUM) above $1 billion. It also has an expense ratio of 0.71% and a 195% one-year return.

As of June 2021 end, the ETF has invested a large chunk of its assets in large-cap while investing smaller portions in mid-cap and small-cap.

Some of its top holdings include Microstrategy Inc, Square Inc, and PayPal Inc.

First Trust Indxx Innovative Transaction And Process ETF (LEGR)

The Indxx Blockchain Index keeps track of the companies that develop, utilize, invest or have products positioned to profit through blockchain technology. It invests a minimum of 90% of its net assets in the companies and has more than 100 holdings in its name.

Its top holdings include Oracle Corporation, Capgemini SE, NVIDIA Corporation, Microsoft Corporation, and many well-renowned companies.

Now, its net assets value up to $117,743,76 and an expense ratio of 0.65%.

Reality Shares Nasdaq NexGen Economy ETF (BLCN)

Similar to LEGR, even BLCN tracks the Nasdaq Blockchain Economy Index that determines the performance of companies involved with Blockchain technology. With about 74 holdings in its name, some of its most prominent companies include Coinbase Global Inc, Square Inc, Accenture Plc, among others.

With an expense ratio of 0.68% and a total net assets value of $284.63M, this ETF has diverse kinds of companies. Since no stakes weigh over 2%, the ETF has fairly distributed its assets across all its holdings.

These are currently the top three ETFs that you can invest in. However, there are other good ETFs, such as Koin, BTTC - the world’s first Bitcoin ETF, etc. So you can also choose from these ETFs based on your requirements.

*This article only represents the views of observers and does not constitute any investment advice.

*The content of this article is original and the copyright belongs to Gate.io. If you need to reprint, please indicate the author and source, otherwise legal responsibility will be pursued.

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What Is The Best Cryptocurrency ETF?

Amplify Transformational Data Sharing ETF (BLOK)

First Trust Indxx Innovative Transaction And Process ETF (LEGR)

Reality Shares Nasdaq NexGen Economy ETF (BLCN)

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