Diversify your portfolio and/or gain exposure to new markets that are growing at a rapid pace.
Within the past few years, more and more cryptocurrency exchange traded funds (ETF's) have been added to the stock market, making it easier than ever to gain exposure to crypto. This allows investors to be involved in the cryptocurrency market without actually owning the underlying crypto asset.
An exchange traded fund is similar to both a mutual fund and a stock, but the main difference between them is that an ETF can be traded throughout the day on a stock exchange - unlike a mutual fund which is not traded in the open market and is instead priced at the end of each trading day.
So you can have a collection of multiple assets in an ETF, like a mutual fund and unlike a single stock, while also having the ability to trade it on a daily basis. Whether you choose to go with a mutual fund and/or an ETF is based on risk profile and preference and an investor should always do their due diligence in researching the asset you choose, as they can be actively or passively managed and have more, less, or even no fees. Now, back to the cryptocurrency side of this. There are ETF's that "long" or "short" cryptocurrency, meaning if "long" the price of the ETF will rise when the crypto goes up and if "short" the price of the ETF will rise when the crypto goes down. So, if the ETF is long Bitcoin (BTC) and the price of BTC goes down, the price of the ETF will go down as well.
Now there are also leveraged ETF's that seek to gain an increase of 2x or more the gain of the underlying cryptocurrency. This allows the opportunity to have higher percentage gains, but also losses as they are more volatile as the price movement up and down is greater.
With the large amount of interest in Crypto growing and the overall sentiment that it should rise in price along with the growing list of ETF's, we suggest you take a serious look at some of the ETF's below and we feel it is a great way to either diversify your portfolio and/or gain exposure to new markets that are growing at a rapid pace.
Currently, there are only ETF's for Bitcoin and Ethereum, but there is a high likelihood that other crypto will get added in the next coming months and in 2025. Some options to consider below:
Ticker Symbol | Fund Name | Issuer | Assets Under Management (AUM) | Expense Ratio (Fees) | Type of Asset |
|---|---|---|---|---|---|
IBIT | IShares Bitcoin Trust | Blackrock | $22.2 Billion | 0.12% | Long Bitcoin |
BITI | ProShares Short Bitcoin Strategy ETF | ProShares | $60.05M | 1.33% | Short Bitcoin |
FETH | Fidelity Ethereum Fund | Fidelity | $331.03M | 0.00% | Long Ethereum |
FBTC | Fidelity Wise Origin Bitcoin Fund | Fidelity | $11.12 Billion | 0.00% | Long Bitcoin |
BITU | ProShares Ultra Bitcoin ETF | ProShares | $361.31 Million | 0.95% | Leveraged Long Bitcoin |
ETHU | Volatility Shares 2x Ether ETF | Volatility Shares LLC | $108.20M | 0.94% | Leveraged Long Ethereum |
ETHD | ProShares UltraShort Ether ETF | ProShares | $5.08M | 1.01% | Short Ethereum |
The link attached is a full list of Crypto ETF's: https://www.etf.com/topics/cryptocurrency
**Disclaimer: All information provided is for informational purposes only, and shall not be relied upon as personal financial advice.
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