The blockchain industry has witnessed tremendous growth in recent years, with cryptocurrencies like Bitcoin and Ethereum dominating the market. As of September 2023, there are over 1.8 million cryptocurrencies with a total market capitalization of $1.04 trillion. These digital assets heavily rely on blockchain technology for secure and decentralized transactions.
Contrary to popular belief, rising interest rates have not negatively impacted Bitcoin prices. Despite multiple interest rate hikes by the US Federal Reserve, Bitcoin has observed a surge of 18.5% in the last year, outperforming the S&P 500 Index and gold prices. This impressive performance has attracted the attention of investors and prompted the emergence of blockchain and Bitcoin ETFs.
One notable ETF in this space is the ProShares Bitcoin Strategy ETF (BITO), which was introduced in October 2021. Other companies, such as Global X and Vanguard, have also entered the market with their own blockchain and Bitcoin ETFs. The Global X Blockchain ETF (BKCH) is particularly recognized for its exposure to the blockchain sector.
Grayscale Bitcoin Trust (GBTC) is one of the largest and most widely recognized Bitcoin investment funds, with a market value of $3.28 billion. This investment trust allows investors to gain exposure to Bitcoin price movements without directly owning the cryptocurrency. However, it is important to note that the Grayscale Bitcoin Trust can only be purchased through brokers.
To help investors navigate the blockchain and Bitcoin ETF landscape, we have compiled a list of the top 10 ETFs based on their performance. These ETFs provide exposure to the blockchain and cryptocurrency sectors through various strategies, including investing in Bitcoin futures or companies connected to blockchain technology.
Here are the top 10 blockchain and Bitcoin ETFs:
10. VanEck Bitcoin Strategy ETF (XBTF): This ETF invests in Bitcoin futures contracts and aims to provide exposure to Bitcoin price movements without owning the cryptocurrency directly.
9. AdvisorShares Managed Bitcoin Strategy ETF (CRYP): An actively managed ETF that invests in Bitcoin futures contracts and money market funds. The fund is managed by AdvisorShares Investments.
8. Fidelity Crypto Industry and Digital Payments ETF (FDIG): This ETF focuses on companies involved in the crypto industry and digital payments. It aims to capitalize on the growing adoption of cryptocurrencies and blockchain technology.
These are just a few examples of the top ETFs in the blockchain and Bitcoin space. Investors should carefully research and consider their investment goals before investing in these funds.
– US Federal Reserve