Best cryptocurrency ETFs to buy in 2024

By:

James Knight

James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.

Updated: Oct 11, 2022

Listen

---

---

0:00 / 07:27

Ad disclosure

Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who may pay to be displayed in certain positions on certain pages, or may compensate us for referring users to their services. While our reviews and assessments of each product are independent and unbiased, the order in which brands are presented and the placement of offers may be impacted and some of the links on this page may be affiliate links from which we earn a commission. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >

Trade your favourite markets with our top-rated broker, eToro.

10/10

77% of retail CFD accounts lose money.

Visit site

Our experts have been through the markets in order to pick out their favourite cryptocurrency ETFs and you can find them ranked on this page. We also go over the pros and cons of investing in an ETF like this and show you where to do so.

What are the top crypto ETFs to buy?

The table below includes our experts’ choices for the best ETFs to get this year. Crypto ETFs can vary quite dramatically in terms of what they offer, so this represents a selection of the options available. You can scroll down to find more information about each one.

1. 21Shares Bitwise Select 10 ETP (SW: KEYS)

21Shares runs a number of different cryptocurrency ETPs (exchange-traded products), ranging from funds that track individual coins to ones that own a collection of different ones. An ETP is an umbrella term that refers to funds that trade on a stock exchange, such as ETFs

This particular fund owns ten of the largest cryptocurrencies by market capitalisation, so it provides one of the most diverse options on the market. It rebalances the portfolio every month, which means that it adjusts the coins it holds based on any changes in the market, so it’s the best way to get access to the top cryptocurrencies.

Like many of the crypto ETFs on this list, it’s still heavily weighted in favour of Bitcoin and Ethereum – the two make up 90% of its holdings – but it gives you exposure to the likes of Litecoin and Cardano as well.

2. 21Shares Crypto Basket Index ETP (SW: HODL)

The second 21Shares offering is a unique one that owns five of the largest cryptocurrencies based on its projections of what the market will look like in 2050. That obviously makes it more of a gamble, because not only are you relying on a volatile cryptocurrency market but also that the projections are accurate.

However, it’s one of the more interesting funds available, because it’s trying to predict the future rather than relying on the biggest coins right now. While Bitcoin is the largest holding, it’s not as dominant a part of this fund as it is in some of the others on this list. It makes up about 40% of the total, while Ethereum and Polkadot each account for 20%.

There is a limited price history to go on for all of these ETFs, and this one is no different. It has only been in operation since Spring 2021, and its price has been quite up and down ever since then. You should expect that from any crypto ETF as it’s simply the nature of the market, but this fund allows you to overlook that in favor of a more long-term approach.

3. Purpose Bitcoin ETF (TSE: BTCC)

The Purpose Bitcoin ETF was the world’s first Bitcoin ETF and it’s one of the best ways to own the cryptocurrency without needing to get your own wallet or use a specialist exchange. Instead, the ETF trades just like a normal stock and its price rises and falls just like the coin itself does.

Bitcoin makes up 100% of the holdings, so it’s much more volatile than a normal fund, which creates stability by owning a diverse range of assets. This fund is completely reliant on Bitcoin’s performance, but that’s also its main attraction as ETFs are much more regulated and easy to use than the cryptocurrency market.

It’s also true that a share in the Bitcoin ETF is available for just a few dollars. Although the price of that share will change dramatically over time – it’s not unusual for Bitcoin to rise or fall by more than 10% in a day – it allows you to profit from an increase without committing a substantial amount of money.

4. Bitwise Crypto Industry Innovators ETF (NYSEARCA: BITQ)

The Bitwise Industry Innovators ETF is different to the others on this list so far in that it owns shares in companies that are invested in cryptocurrency, rather than the coins themselves. It’s much more like a traditional ETF, that simply tracks the performance of  the crypto industry.

The companies it owns are all involved in the crypto economy, and many of them develop the technology to help it grow. It’s more diverse than funds that are heavily exposed to a single coin – the largest holding in the Bitwise fund makes up just 10% of the total – and it owns stocks in companies that are often quite different from one another.

Its largest holding is Microstrategy, a software company, and the second largest is the crypto exchange Coinbase. It also owns companies that work in app development and cryptocurrency mining, so it isn’t reliant on the coin market alone to grow.

5. Grayscale Future of Finance ETF (NYSE: GFOF)

Grayscale is the world’s largest cryptocurrency fund manager and this is their first entry into the ETF market. The Future of Finance ETF is like the Bitwise fund, in that it owns shares in companies rather than cryptocurrency, although the purpose of the fund is different.

GFOF invests in companies that are directly involved in the digital economy. That means it holds shares in businesses that are building out the infrastructure for decentralised finance (DeFi), such as Coinbase and PayPal, as well as companies involved in cryptocurrency mining.

This ETF represents more of a long term play on the growth of a financial system built around blockchain technology. As it owns shares rather than cryptocurrencies, it’s likely to be more stable than other crypto ETFs and Grayscale is a well-respected asset manager, making this an interesting choice for anyone who’s also interested in DeFi ETFs and the industry of decentralised finance.

Where to buy the best crypto ETFs

In order to buy an ETF you need an online broker. Ideally, one that allows you to buy stocks from lots of countries around the world as many of these funds trade outside of the US and UK. The table below includes brokers that allow you to do just that.

Most Popular

1

Min. Deposit

$ 10

Best offer

User Score

10

Up to $240 bonus!

Deposit with ACA, Wire, Pay with my bank

Invest for dividends and get payout on stocks on Ex-Dividend day

Start Trading more info

Payment Methods:

Bank Transfer, Credit Card, Debit Card, PayPal, Wire Transfer

Full Regulations:

CySEC, FCA

77% of retail CFD accounts lose money.

2

Min. Deposit

$ 100

Best offer

User Score

9.8

Trade +2000 CFDs on Shares, Options, Commodities & more

Unlimited risk-free Demo Account

0 commissions & attractive spreads with up to 1:5 leverage

Start Trading more info

Payment Methods:

American Express, Apple Pay, Bank Transfer, Credit Card, Debit Card, Discover, Google Pay, Mastercard, PayPal, SEPA, Trustly, Visa, , skrill

Full Regulations:

ASIC, FCA, FSA, MAS, cysec-250-14-regulator, isa-regulator

82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

3

Min. Deposit

-

Best offer

User Score

9.7

Diverse Stock Selection: Interactive Brokers offers a wide range of domestic and international stocks, providing investors with a diverse array of options for their portfolios.

Advanced Trading Tools: Investors benefit from real-time market data and advanced tools, empowering them to make informed decisions and execute trades with precision in the dynamic stock market.

Easy Portfolio Management: Interactive Brokers makes it simple to handle your investments by allowing you to easily switch between stocks and other assets on one platform, streamlining the way you manage your overall portfolio.

Start Trading more info

Payment Methods:

ACH, Bank Wire, Check

Full Regulations:

CFTC, FCA, FINRA, IIROC, NFA, NYSE, SIPC

What is a cryptocurrency ETF?

It’s a fund that trades on the stock market, known as an ‘exchange-traded fund’, that owns assets that are part of the cryptocurrency world. In many cases, that means they own the coins themselves, but it can also mean that they hold stocks in companies with exposure to the crypto market. So the price of these funds reflects the performance of cryptocurrency in general.

Are crypto ETFs a good investment?

It depends on what’s important to you as an investor, because they can be more risky and volatile than is normal for ETFs. This type of fund is usually a low-risk, low-maintenance way to build an investment portfolio, whereas crypto ETFs are more like a way to invest in cryptocurrency in a more regulated way, rather than owning the coins yourself. 

However, they are a good way to get exposure to cryptocurrency if you’d rather not go through the process of buying coins and storing them. ETFs are extremely easy to access and take the difficulties of picking which coin you expect to perform best out of your hands.

It’s likely that more of these funds will crop up as time goes by, and each one will offer new ways to invest in the crypto market. Keep your eye on the latest crypto news if you want to bide your time, or sign up to a broker straight away in order to get started now.