Best Crypto ETFs to Invest in 2023
Disclaimer: The Industry Talk section features insights from crypto industry players and is not a part of the editorial content of Cryptonews.com.
A crypto ETF offers exposure to a basket of digital assets. Relevant ETFs in this space allow investors to easily diversify into crypto without having to handpick individual tokens.
In this guide, we analyze the best crypto ETFs to consider for 2023.
Best Crypto ETFs to Buy Ranked
Below is a list of 8 top crypto ETFs to watch in 2023:
- Dash 2 Trade Crypto Presale - Better Alternative to Crypto ETFs
- Fidelity Advantage Bitcoin ETF - Easy Alternative to Buying Bitcoin Directly
- ProShares Bitcoin Strategy ETF - Cryptocurrency ETF Investing in Bitcoin Futures Contracts
- Bitwise Crypto Industry Innovators ETF - Diversify Into Crypto-Related Companies
- Ark Fintech Innovation ETF - Best Crypto ETF for Tech Investors
- Global X Blockchain ETF - High-Growth ETF Tracking Blockchain Companies
- eToro's CryptoPortfolio - Invest in Top 20 Digital Assets by Market Cap
Read on to learn more about the best crypto ETFs on the above list - including the assets they track and the benefits of investing in them.
Analyzing the Best Crypto ETFs
As the blockchain space gains more popularity, cryptocurrency ETFs are becoming increasingly common. The main purpose of ETFs is to gain diversified exposure to the crypto market.
That being said, the ultimate goal for most traders is to maximize their returns from their crypto investments. In this regard, there might be better alternatives to investing in a cryptocurrency ETF.
In the following sections, we review the best crypto ETFs available in the market today.
But first, we discuss some of the top projects in this space that have the capability to potentially bring in more attractive gains than conventional crypto ETFs.
1. Crypto Presales - Better Alternative to Crypto ETFs
While crypto ETFs come with many advantages, they might not be the best way to maximize profits from the growth of digital assets. The main reason for this is that crypto index ETFs are often designed with a long-term approach in mind. And as such, investors might not be able to benefit from short-term price changes.
Hence, many investors might find that the smarter option is to look for the best crypto presales emerging in the market. Crypto presales provide investors the opportunity to be part of an exciting new venture before it is launched to the public. Moreover, during presales, new digital tokens are offered at a discounted rate - often as high as 50% of the perceived exchange listing price.
This means that when the specific crypto is listed on an exchange, investors will be able to sell them - potentially for a notable profit. With this in mind, we will now discuss some of the top crypto presales that investors might consider today.
Dash 2 Trade - Upcoming Crypto Analytics Platform
When scouring the market for the best upcoming ICOs, we came across Dash 2 Trade, an emerging cryptocurrency platform that has the potential for sizable growth. Dash 2 Trade is a fully-fledged crypto analytics platform that is set to launch in early 2023. D2T, the native cryptocurrency of this platform, has already raised over $5 million within the first two weeks of its presale round.
Although there are several crypto analytics platforms already available in the market, Dash 2 Trade sets itself apart by being a one-stop solution with virtually every tool needed. It not only provides on-chain analytics and charting tools but also comes with price trackers and new coin listing alerts.
In addition to this, Dash 2 Trade offers social-media analytics - which is a feature that can be of immense help to investors of all skill sets.
Dash 2 Trade will also generate crypto trading signals, which investors can use to place their trades. Furthermore, this platform will support copy trading and will function as a social network for investors. Given all these factors, Dash 2 trade has everything necessary to revolutionize the space of crypto analytics.
Dash 2 Trade offers its services via a subscription model, and users are required to make payments using D2T tokens. If Dash 2 Trade sounds attractive, investors might elect to buy D2T tokens via the presale - where it is available at a discounted price.
As of writing, 1 D2T equals $0.0513, and the tokens can be purchased in exchange for Ethereum or Tether. To know more about this project, investors can check out the Dash 2 Trade whitepaper.
IMPT - Eco-Friendly Crypto Project on Presale
Another best crypto presale that has caught our attention is IMPT. IMPT is a Web 3.0 ecosystem that aims to make carbon credits accessible to individuals and companies. To offer some context, carbon credits are permits that represent one ton of CO2 and other greenhouse gases.
Typically, these are issued by the governments of different countries as a way for companies to offset their carbon emissions. In governmental schemes, companies are offered only a limited number of carbon credits; over time, they should reduce their emissions or purchase more permits.
This has led to the emergence of a secondary carbon credits market. IMPT has taken it upon itself to offer both individuals and companies tokenized versions of carbon credits. Moreover, the platform has partnered with several eco-friendly crypto projects that can issue carbon credits. To buy these carbon credits, investors will first have to acquire IMPT tokens.
As of writing, these tokens can be purchased only via the IMPT presale. In the future, investors will also be able to get IMPT tokens as rewards by shopping via one of the platform's partnered retailers.
After purchasing IMPT tokens, investors can use them to buy carbon credit NFTs via the platform. They can burn them right away to offset their carbon footprint or trade them to make a profit. In an increasingly climate-conscious world, IMPT has the capability to transform how we invest in eco-friendly projects.
Needless to say, this ethically driven project has high upside potential, and those who become early investors of IMPT might be able to grow their capital over time. Out of the total supply of 2 billion IMPT tokens, 20% will be available via the presale campaign.
Having raised more than $12 million in the ongoing presale round, IMPT is already on its way to becoming one of the best trending cryptos of 2023.
Calvaria - Innovative Play-to-Earn Platform
Calvaria is the third crypto presale project that is attracting a lot of attention in this space. It is a brand new play-to-earn crypto platform that is designed to capitalize on the growth of the Web 3.0 space.
In simple terms, Calvaria is a battle card game played using NFTs. Players are expected to build their teams and pit them against each other to collect points. The player's ultimate aim is to defeat opponents using strategies and tactics in order to get rewards.
The Calvaria platform is run by the RIA token. However, the rewards are offered in the form of eRIA tokens, which can also be used within the game to purchase in-game upgrades. The presale for Calvaria RIA tokens is live on the project's website right now.
The presale of Calvaria is being conducted in multiple stages. As with Dash 2 Trade and IMPT, those who participate in the presale earlier will be able to capitalize on discounted rises - before the token launches on crypto exchanges.
2. Fidelity Advantage Bitcoin ETF - Easy Alternative to Buying Bitcoin Directly
This Fidelity crypto ETF is mainly targeted at investors who want to gain exposure to Bitcoin but do not want to go through the hassle of opening an exchange account or finding a digital wallet. Instead, investors can easily buy, sell, and trade the Fidelity Advantage Bitcoin ETF via traditional brokerage accounts.
In return, the Fidelity Advantage ETF offers secure storage of Bitcoin. This fund was launched in late 2021 and is traded on the Toronto Stock Exchange. The fund is managed by Fidelity's Canadian arm.
The Fidelity Advantage Bitcoin ETF allocates 100% of its funds to buying physical BTC coins - which are stored in secure cold wallets. Meaning, this is one of the best cryptocurrency ETFs to offer direct exposure to Bitcoin. However, at the same time, there is no room for diversification here - which might be discouraging for many investors.
The management fee for this Fidelity cryptocurrency ETF is 0.40%. On top of this, there is also a management expense ratio of 0.96%. Since its inception, the value of this crypto ETF has dropped by around 62%.
3. ProShares Bitcoin Strategy ETF - Cryptocurrency ETF Investing in Bitcoin Futures Contracts
As with equities and commodities, the crypto space also has a substantial derivatives market. In fact, crypto traders often opt to deal with futures, which allows them to lock in a price, thus hedging the risk of volatility associated with the digital asset. The ProShares Bitcoin Strategy fund, with the crypto ETF ticker BITO, tracks the prices of Bitcoin futures contracts.
Crucially, traders should bear in mind that future contracts don't always track the spot price of digital assets accurately. This difference in price is called a 'tracking error'. While it is not entirely possible to avoid, the BITO ETF has done a solid job of tracking the price of Bitcoin since its inception.
This cryptocurrency ETF was launched in October 2021, and since the beginning of 2022, has gone down by around 68%. On the other hand, the price of Bitcoin has decreased by nearly 63% during the same time.
While tracking error could be a reason for this disparity, the difference may also be due to the fees associated with this ETF. The Fidelity cryptocurrency ETF has a relatively high expense ratio of 0.95%.
4. Bitwise Crypto Industry Innovators ETF - Diversify Into Crypto-Related Companies
The Bitwise Crypto Industry Innovators ETF is a passively managed fund that tracks the Bitwise Crypto Innovators 30 Index. This crypto index fund comprises stocks of 30 companies that are involved in the digital asset market. Some of the top holdings of this crypto ETF stock include Microstrategy, Coinbase Global, Silvergate Capital, Marathon Digital, and Hut 8 Mining.
As is clear, this top crypto ETF has diversified into several sectors - such as financial services, mining, digital payments, and more. This crypto index ETF was launched in 2021 and has lost nearly 80% in value over the past 12 months.
Since all the stocks in this fund have 75% of their net holdings in digital assets - this suboptimal performance doesn't come as a surprise. After all, the wider crypto market is embroiled in a prolonged bearish phase.
When compared with the others ETFs for cryptocurrency listed in this guide, this fund has a low expense ratio of just 0.50%.
5. Ark Fintech Innovation ETF - Best Crypto ETF for Tech Investors
Ark is one of the leading investment-service providers that offer ETFs related to the crypto space. Its Fintech Innovation ETF is an actively managed fund that tracks businesses that seek long-term growth in the sector of financial technology.
The top holdings of this Ark crypto ETF include companies relying on blockchain technology and providing services such as transaction innovations, customer-facing platforms, and more.
The Ark Fintech Innovation ETF was listed on the NYSE in 2019. Over the past year, the value of the ETF has declined by around 70%. If choosing this ETF, investors will also have to take into account the expense ratio of 0.75%.
This fintech ETF has 31 holdings, which include Coinbase, Block, and Roblox. In other words, ARKF is the best crypto ETF for those who wish to gain indirect exposure to digital assets - while diversifying into companies operating in sectors such as the metaverse, blockchain tech, and crypto exchange services.
6. Global X Blockchain ETF - High-Growth ETF Tracking Blockchain Companies
This is another new crypto ETF that tracks the performance of businesses related to the blockchain industry.
It invests in 25 tech and Bitcoin mining companies - with the latter profiting from the underlying blockchain technology. Some of the notable holdings include Riot Blockchain and Coinbase Global.
As is evident, this cryptocurrency ETF stock fund is not a pure play; however, it does offer good proxy exposure to the blockchain space.
Moreover, it also has a 0.9 correlation with the price of Bitcoin - which means that the performance of BTC tokens can have a direct impact on the value of this ETF. The Global X Blockchain ETF comes with an expense ratio of 0.5%.
7. eToro's CryptoPortfolio - Invest in Top 20 Digital Assets by Market Cap
Investors do not need to search for the best crypto ETF providers to benefit from diversification. Instead, a select number of brokers also offer managed portfolios that function more or less like ETFs. For instance, eToro, a leading online broker, has a unique feature called Smart Portfolios.
eToro's Smart Portfolios are curated collections of assets that track a specific theme. The broker has dozens of Smart Portfolios, some of which are focused on the crypto market.
The CryptoPortfolio, in particular, consists of the top 20 digital currencies based on market cap. This includes Bitcoin, Ethereum, Binance Coin, Solana, Cardano, Ripple, Polkadot, and 13 others.
The CryptoPortfolio is periodically rebalanced to ensure that it aligns with its market capitalization objectives. Since this is not technically a cryptocurrency funds ETF, investors do not need to worry about tracking errors or management fees. Instead, investors receive a fully managed and diversified portfolio of cryptocurrencies.
What is a Cryptocurrency ETF?
A cryptocurrency ETF is an exchange-traded fund that tracks the price of one or more digital assets. The main advantage of crypto ETFs is that they allow investors to gain exposure to the blockchain market without taking direct possession of digital tokens. Moreover, cryptocurrency ETFs are the easiest way to build a diversified portfolio.
That being said, diversification isn't the only reason for investors to prefer crypto ETFs. For many investors, crypto ETFs simplify the process of investing in digital currencies. For instance, when investing in digital tokens via ETFs, there is no need to learn about how to store cryptocurrencies safely or sign up with an exchange.
Instead, an ETF for crypto can be accessed via traditional online brokers. Some of the best crypto ETFs are launched by established brokerage platforms - such as Fidelity, Ark, and ProShares. Furthermore, crypto ETFs also give investors room to decide how they want to gain exposure to the blockchain market.
To elaborate - while some ETFs directly hold cryptocurrencies in their funds, others track derivatives - such as futures contracts. Additionally, there are also crypto ETFs that hold equity positions in companies that are related to blockchain technology.
All that being said, crypto ETFs remain speculative investments, and as such, they still carry a significant risk of volatility.
How do Crypto ETFs Work?
Finding the best crypto ETF can be a tough challenge for investors. After all, as our cryptocurrency ETF list has pointed out, there are several diverse choices available out there.
As such, it is important to understand the different options.
How a crypto ETF performs will ultimately depend on the assets it tracks. Based on the type of underlying asset, crypto ETFs can be broken down into a few broad categories:
- ETFs that are physically backed by cryptocurrencies - such as the Fidelity Advantage Bitcoin Fund
- ETFs that track the price of crypto futures - like the ProShares Bitcoin Strategy ETF
- ETFs that have holdings in crypto-related stocks - like the Global Blockchain ETF
Investors can choose the best crypto ETF for their portfolio based on their risk appetite and the exposure they seek to the blockchain space.
Are Crypto ETFs Worth Investing in?
Investors who own the best crypto ETFs may benefit from the following:
Diversification
Perhaps the most obvious attraction of crypto ETFs is that they can give exposure to a group of digital currencies.
The best cryptocurrency ETFs track a broader range of assets. Some crypto index ETFs follow the performance of not only digital currencies but also companies operating in this sector.
For instance, the Fidelity Crypto Industry and Digital Payments ETF track the performance of blockchain and digital payment companies. This top crypto ETF holds several dozen stocks - operating in the tech industry and the financial services sector.
Similarly, the Global Blockchain and the Ark Fintech ETFs provide investors with a great level of diversification. This means that cryptocurrency ETFs provide traders with the chance to branch out their investments not only within the digital-asset space but also in the equity market.
Crypto ETFs are Actively Managed
When buying individual cryptocurrencies, investors should regularly follow the market and adjust their portfolios accordingly.
On the other hand, the best crypto ETFs are managed by the provider. In most cases, there will be a fund manager who studies the market and rebalances the cryptocurrency ETF from time to time.
This ensures that the ETF will continue to be adjusted based on market conditions. For instance, the fund manager might increase the allocation of the cryptocurrencies with the most potential and reduce the exposure to digital coins that are more volatile.
In other words, with cryptocurrency ETFs, investors will not have to worry about or have to keep up with the market at all times - nor rebalance their portfolio manually.
Crypto ETFs can be Traded Like Stocks
Another advantage of crypto ETFs is that they can be traded like equities.
For instance:
- Cryptocurrency ETFs can be purchased on margin - by borrowing money from the broker.
- Crypto ETFs can also be sold short, making it possible for investors to make profits with the falling prices of digital assets.
- ETFs also allow investors to manage risk by investing in funds that track derivatives such as futures and options.
Since ETFs are traded like stocks, they can also be accessed via traditional online brokers. This means that investors need not learn how to use a crypto exchange, nor do they have to worry about safely storing their digital assets.
Risks of Crypto ETFs
The biggest risk associated with cryptocurrency ETFs is volatility. The price of digital assets can swing heavily on a daily basis, sometimes - even in a matter of minutes. Daily corrections of more than 10% are not uncommon in the crypto space.
In fact, the price of cryptocurrencies can remain depressed for many months before they go up. Therefore, cryptocurrency ETFs are best suited for risk-tolerant investors.
Moreover, unlike digital assets, crypto ETFs do not trade 24/7. This means that after-hour and weekend fluctuations in the price of cryptocurrencies can leave ETF investors with sudden losses - when the market reopens.
In simple terms, investors should be aware of these fluctuations when trading crypto ETFs over the long term.
Crypto Presales: a Better Alternative to Crypto ETFs?
Earlier in our guide, we offered an overview of why crypto presales might be a better alternative for investors, especially for those who seek to generate profits in the shorter term.
In this section, we offer some additional insight into crypto presales.
A cryptocurrency presale is a way for new blockchain projects to raise funding. In many ways, crypto presales or ICOs can be compared to stock IPOs. They allow investors to get an advantage by getting the first crack a discounted tokens.
When these crypto presale tokens are finally launched on an exchange, they might be listed at a higher price - when compared to their presale rates. As such, the key is to identify the best crypto ICOs to invest in and, most importantly, at the right time.
Below, we review some of the best future cryptocurrency projects that are going through presale stages as of writing.
Dash 2 Trade - Powerful Crypto Analytics Platform
As we mentioned above, Dash 2 Trade aims to be the best crypto tool for traders. It comes with a set of highly advanced tools, which gives traders access to powerful analytics to arrive at their decisions. The platform will offer a combination of price trackers and has also set up a system to assess the credibility of new coin listings.
This means that users can refer to the 'Dash Score' to decide whether a new crypto launching in the market is a good investment. The platform's team of in-house analysts evaluate the project’s development team, the auditing process, and tokenomics in order to assign the Dash Score.
In addition to this, Dash 2 Trade will also offer cutting-edge on-chain analytics as well as social media statistics.
Users of Dash 2 Trade will also be able to get trading suggestions in the form of crypto signals. Furthermore, Dash 2 Trade will allow users to set up automated trading by linking their exchange API. Altogether, Dash 2 Trade has all the necessary features to set itself apart as the best cryptocurrency app to use for trading strategies.
Investing in the platform's D2T tokens comes with two different advantages. For one, investors can use the token to gain access to the full suite of Dash 2 Trade crypto tools. Alternatively, they can also choose to buy Dash 2 Trade tokens at a discounted price via the presale - and potentially sell them for a profit when the digital coin is listed on its first crypto exchange.
As of writing, D2T tokens are available at a price of 0.0513 USDT. The price of the digital token will increase in increments throughout the next stages of the presale.
2. IMPT - ESG-Friendly Cryptocurrency in Presale Stage
As we established earlier, IMPT is building an ecosystem that connects socially responsible brands with businesses and individuals who want to reduce their carbon footprint. To achieve this, IMPT offers carbon credits - which are sold in the form of NFTs.
Meaning - investors can buy carbon credit NFTs and trade them like any other digital asset. The first step to purchasing carbon credit NFTs is to invest in IMPT tokens. The main function of IMPT is as the transactional currency of this project's ecosystem.
Every service offered within this carbon marketplace will be facilitated in the IMPT token. Furthermore, those who own IMPT tokens will also be able to participate in the DAO of the project.
Investors can buy IMPT tokens via the platform's presale - and the earlier the purchase is made, the lower the cost. For instance, IMPT started its presale by offering its native tokens for the price of $0.018. By presale stage two, the price of IMPT tokens increased to $0.023 per coin.
Those looking for alternatives to crypto ETFs might want to consider IMPT - as this token has all the makings of a top-quality project. Based on presale statistics, IMPT could be the next cryptocurrency to explode.
3. Calvaria - Crypto Game With NFT Cards
As of writing, Calvaria has now reached four or ten stages of its presale. The platform has raised funding of more than $1.3 million from its early investors. With each presale stage, the platform will increase the price of its native RIA token.
During stage 4, investors can get 40 RIA tokens for 1 USDT. In the next stage, investors will only be able to get 33.33 RIA tokens for the same amount of USDT. By the time Calvaria is listed on crypto exchanges, RIA tokens will go through an increase of 120% when compared to its initial presale price.
In other words, investors will need to act fast if they wish to secure the best price for RIA.
All in all, crypto presales look like an attractive investment option in 2023. Throughout this year, the broader crypto market has gone through a bearish phase. However, despite this, a select number of crypto presale projects have managed to raise millions of dollars.
For instance, Tamadoge and Battle Infinity had massively successful presales, having reaped an investment of $19 million and over $5 million, respectively. Dash 2 Trade, IMPT, and Calvaria are following in the same footsteps and have already garnered a lot of attention from crypto enthusiasts.
Conclusion
This guide has listed and analyzed the best crypto ETFs available in the market right now. To sum up, crypto ETFs can be bought and sold via traditional brokerage platforms, and they also facilitate diversification.
However, crypto ETFs cannot be traded 24/7 - meaning investors can face volatility issues when the market is closed. Therefore, many argue that investing in crypto presales is the better alternative to making profits in this market.
Some of the best crypto presales of 2022 included Dash 2 Trade and IMPT - both of which are unique projects that have innovative use cases and tremendous growth potential.
FAQs
Is there a crypto ETF?
Yes, there are several crypto ETFs available in the market today. However, the biggest gains in this space are not associated with ETFs but with crypto presales. Crypto presales allow investors to buy digital assets at a discounted price. Moreover, the best crypto presales come with a high upside potential, which means that investors can maximize profits if and when the price of the digital asset goes up.
Which crypto ETF is best?
The best crypto ETF for those who seek direct exposure is the Fidelity Advantage Bitcoin Fund - which invests in physical Bitcoin. Alternatively, investors can also consider ETFs that track crypto futures or stocks in the blockchain space.
Can you buy crypto in an ETF?
As our crypto ETF list highlighted, there are several exchange-traded funds that offer direct exposure to digital assets. Investors can also opt for managed portfolios that consist of a basket of digital assets - such as the Smart Portfolios offered by eToro.
Does Vanguard have a crypto ETF?
Those searching for a Vanguard cryptocurrency ETF will unfortunately be disappointed. There is no Vanguard crypto ETF trading in the market as of writing. However, Vanguard does support the Grayscale Bitcoin Trust, which is an investment vehicle that solely invests in and derives value from the price of BTC.
Are there any Ally crypto ETFs?
Although Ally is a popular investment brokerage platform, it does not support any ETF for cryptocurrency.
