Best Crypto ETFs To Buy in 2022
Despite the ongoing crypto winter that is driving down the price of Bitcoin and alt-coins in the cryptocurrency market, cryptocurrency ETFs can provide a more stable way to invest in cryptocurrency with somewhat less risk. As with any investment, there is an element of chance – this is especially true in the volatile crypto market.
ProShares Bitcoin ETF (BITO)
ProShares Bitcoin ETF was the first U.S.-based crypto ETF tracking the price of Bitcoin futures. According to ProShares, the fund has “performed as designed, providing returns closely aligned with spot bitcoin.”
In light of the crypto winter, the ETF had returned -36.5% in mid-year 2022, compared to -33.5% for Bitcoin. Although its return is now down below -60%, as bitcoin bounces back, so should this ETF.
VanEck Digital Transformation ETF (DAPP)
Rather than tracking the price of a specific cryptocurrency, the VanEck Digital Transformation ETF tracks 24 stocks related to crypto and blockchain technology, including the popular cryptocurrency exchange, Coinbase Global Inc. Thirty-one percent of the ETF’s holdings are non-U.S. companies, giving this ETF greater diversification than some on this list.
VanEck is a global investment management firm with a solid track record and a diversified portfolio that includes ETFs in industries ranging from biotech to gaming.
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However, by spreading funds across a variety of similar investments in the industry, crypto ETFs reduce the associated risk. Additionally, it can be easier to invest in ETFs, which are available on most investment platforms and apps, than it is to buy cryptocurrencies, which require technology like a custodial wallet to protect your investment.
Top Cryptocurrency ETFs What is a Cryptocurrency ETF?
A cryptocurrency ETF, or exchange-traded fund, is a basket of stocks or investments related to the cryptocurrency industry. A cryptocurrency ETF can also track the price of specific cryptocurrencies, or it can track the prices of crypto futures, such as the ProShares Bitcoin Strategy ETF.
These are some of the best crypto ETFs investors are talking about in 2022.