Smart Investing in Cryptos Through ETFs

Intro to Crypto ETFs Picking individual investments is difficult. People...

By crypto-reports


May 25, 2022

Intro to Crypto ETFs

Picking individual investments is difficult. People have been trying to beat the market through individual stock purchases for over 100 years. This complexity is multiplied for cryptocurrencies, given the vast array that have come onto the market in the past decade. Additionally, the crypto markets are increasingly technical and filled with questionable projects.

When it comes to investing in traditional markets, most investors buy diversified baskets of investments through Index funds or ETFs (exchange-traded funds) as it has been proven to be more reliable. This statement is more relevant in bear markets: making money in rising markets is easy, but outperforming during bear markets is difficult. Hence the common saying among investors, "a rising tide lifts all boats".

This year has been rough for crypto currencies. Year-to-Date, Bitcoin has fallen 37.5%. Other famous coins in the top 100 (by market capitalization) have followed the same pattern. For example, Solana, one of the hottest cryptos on the market, is down 69.2%. Similarly, Cardano is down 59.2%. Even stable coins are not as stable as they used to be (see our article about Terra UST’s peg breaking).

To help simplify the market, our crypto analysts have collected the following three crypto ETFs / blockchain ETFs to make your crypto investing a little easier:  

Global X Blockchain ETF(BKCH)

You might want to consider the Global X Blockchain ETF. The team invests in blockchain technology companies on the forefront. The investments include, but are not limited to, digital assets, transaction technologies and crypto miners.

Ticker: BKCH

Expense Ratio: 0.5%

First Trust Indxx Innovative Transaction & Process ETF (LEGR)

This ETF is composed of companies that either actively use, invest in or develop products that benefit from blockchain technologies.

Ticker: LEGR

Expense Ratio: 0.65%

Bitwise 10 Crypto Index Fund (BITW)

This ETF has a rather passive investment approach, tracking the 10 largest crypto assets weighted by their market capitalization. Despite being passively managed, this ETF has the highest expense ratio of the three ETFs.

Ticker: LEGR

Expense Ratio: 2.5%


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