The crypto market has brought in all kinds of investors — from individual retail investors that are looking for a home run trade to large institutions releasing their own crypto funds. Venture capital investors have poured almost $33 billion into many blockchain and crypto start-ups last year.
Here’s a list of three cryptocurrency ETFs to think about buying for 2022:
1. Amplify Transformational Data Sharing ETF
With $1.07 billion in total assets that are under management as of Feb. 2022, this ETF is one of the biggest funds that is focused on the digital asset and crypto economy. It is a great choice to start searching for the best cryptocurrency industry ETFs, although it does not directly invest in crypto. The fund has a 0.71% yearly expense ratio, which means that $7.10 in fees are taken out of the fund’s performance every year for a $1,000 investment.
The ETF has 45 company stocks. It was released in Jan. 2018, which makes the longest-tenured ETF on this list, however this is still a very new investment product release. The top holdings in this fund include semiconductor company Nvidia and cryptocurrency trading marketplace Coinbase Global.
2. Bitwise 10 Crypto Index Fund
The Bitwise 10 Crypto Index Fund is a special offering on this list. It was initially a private placement fund, but you can no buy and sell shares over the counter. The fund is being actively managed, so it has a large expense ratio of 2.5%.
The Fund invests in the leading 10 cryptos (as measured by their market cap) and is rebalanced every month to account for any changes to crypto prices. BTC and ETH are far and away the biggest cryptocurrencies by size, so they make up about 61% and 28% of the portfolio. The next eight cryptos by size — including Solana, Cardano and Avalanche — make up the balance.
Because this fund is trading over the counter, it is able to trade at a large premium or discount to the underlying cryptocurrency prices it owns, depending on what the demand is for the shares. Investors should be careful. However, if investing in some of the largest cryptos is what you are after, this fund is worth looking at.
3. Siren Nasdaq NexGen Economy ETF
The Siren Nasdaq NexGen Economy ETF is a fund that puts its focus on companies creating and utilizing blockchain tech. Its assets that are under management are a lot smaller than Amplify’s other ETF product that’s similar, but it does offer a slightly different approach on this space.
For one thing, this ETF has 64 stocks. Its focus has broadened to encompass a more general technology business that may have a cryptocurrency or blockchain segment like IBM, which is a top holding. It also includes shares of some traditional banks like JPMorgan Chase that have begun dabbling in the world of cryptocurrency. It is a far more diversified way to bet on the growing cryptocurrency industry.