3 Best DeFi ETFs to Buy in Q3 2024
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, .
4.5/5CFD service. 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.
This guide picks out the best DeFi ETFs on the market today and shows you the best platforms to use to invest. It also explains why an ETF offers the simplest route to investing in DeFi and what the future for this type of fund might be.
What are the top DeFi ETFs to buy?
Copy link to sectionDecentralized Finance (DeFi) is a leading industry in the blockchain industry that lets users trade and use digital assets in a decentralized way. As a result, token holders have a role in the key decisions in the platforms. They can vote for fees changes and also new product additions.
There are different types of DeFi platforms. First, there are DEX platforms like Uniswap, PancakeSwap, and Helix. Second, there are lending platforms like AAVE and Compound. Third, there are staking platforms like RocketPool and Lido.
There are no DeFi ETFs in the market. Still, if you are interested in the industry, there are some ETFs that you might consider.
| # | ETF symbol | ETF name | Learn more |
|---|---|---|---|
| 1 | DEFI11 | Hashdex DeFi Index ETF | Learn more > |
| 2 | ETHE | Grayscale Ethereum Trust | Learn more> |
| 3 | DEFG | Grayscale Decentralized Finance Fund | Learn more > |
1. Hashdex DeFi Index ETF (DEFI11)
Copy link to section- Assets: $8.5 million
- Expense ratio: 1%%
- Year of inception: 2021
- Average annual return since inception: -39%
- Dividend Yield: 3.8%
- Benchmark index: CF DeFi Composite Index
The Hashdex DeFi Index is the world’s first DeFi ETF. It trades on the Brazilian stock exchange and Hashdex is a well-regarded digital asset manager that also runs its own dedicated crypto ETF.
This ETF owns a handful of cryptocurrencies that meet one of three criteria; they either provide DeFi services, blockchain technology, or decentralised apps (dApps). The holdings are then weighted, so Uniswap, Ethereum, and Curve account for about half of the total performance.
As the only DeFi ETF available, this fund offers a unique opportunity to invest in the future of financial services. It’s likely to be more volatile than an ETF that owns stocks but offers significantly more upside, as well as a route to owning crypto through a regulated financial exchange. This ETF is not available to American investors.
2. Grayscale Ethereum Trust
Copy link to section- Assets: $10 billion
- Expense ratio: 2.5%
- Year of inception: 2017
- Average annual return since inception: 26%%
- Dividend Yield: N/A
- Benchmark index: N/A
The Grayscale Ethereum Trust (ETHE) is not necessarily an ETF but a fund. It is also not specifically a DeFi ETF. Instead, it is a fund that tracks the price of Ethereum, the second-biggest cryptocurrency in the world.
Ethereum is an integral part in the DeFi industry, where it powers most platforms like Uniswap, Lido, AAVE, Compound, and RocketPool. In all, Ethereum had a total value locked (TVL) of over $100 billion.
Therefore, if your goal is to invest in a DeFi ETF, this is one of the best ones you can invest in. It will also be converted into a spot Ethereum ETF. However, it is a highly expensive fund with a management fee of 2.50%.
3. Grayscale Decentralized Finance Fund (DEFG)
Copy link to section- Assets: $4.7 million
- Expense ratio: 2.5%
- Year of inception: 2017
- Average annual return since inception: 12.5
- Dividend Yield: N/A
- Benchmark index: N/A
The Grayscale Decentralized Finance Fund (DEFG) is a fund that tracks the biggest players in the DeFi industry. It only tracks five funds, including Uniswap, Maker, Lido DAO, Aave, and Synthetix. This means that it does not include some of the fastest-growing platforms like EigenLayer, Pendle, JustLend, and Renzo.
It is also has a higher expense ratio than most funds since it charges 2.50% to investors. This means that a $10,000 investment will cost $2,500 a year, which is not ideal.
Where to buy the best DeFi ETFs
Copy link to sectionYou can buy DeFi ETFs through any of the platforms below. It takes just a few minutes to set up an account and get started and each broker offers a wide range of assets to invest in, along with ETFs. Click one of the links in the table to sign up.
We found 4 online brokers for users based in
Buy or sell stock CFDs with Plus500. 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.
eToro offers real assets only, no CFD products. eToro securities trading offered by eToro USA Securities, Inc. (‘the BD”), member of FINRA and SIPC. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Invezz.com is not an affiliate and may be compensated if you access certain products or services offered by the BD.
Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Crypto trading on Public platforms is served by Public Crypto LLC and offered through APEX Crypto. Please ensure that you fully understand the risks involved before trading.
What is a DeFi ETF?
Copy link to sectionIt’s a fund that invests in companies (or cryptocurrencies) that operate in the decentralised finance industry and which trades on a stock exchange. That means you can buy shares in it just as you would a stock and the value of your investment fluctuates based on the value of all the assets in the fund.
An ETF gives you the chance to invest in the industry rather than picking individual stocks, making it easier to get started. A DeFi ETF might invest in decentralised exchanges, platforms that offer yield farming, and the blockchain technology itself, removing the need for you to make the difficult decisions on where to focus your money.
Are DeFi ETFs a good investment?
Copy link to sectionIt depends on what you expect the future of finance to look like. If you think the financial world is increasingly going to turn to digital assets and blockchains to operate online payments, then this type of ETF offers the best way to speculate on its future success.
Many large financial institutions, such as Santander, JP Morgan, and PayPal, have already invested heavily in this type of technology, so its prospects look good. However, the nature of speculative tech and cryptocurrencies in general is that they are volatile and so you should expect some significant peaks and troughs from any DeFi ETF as well.
The best way to stay informed and make the best decisions is to follow the latest news and time your investments accordingly. You can find out what’s going on in the DeFi world in the news links below, or click the button to start investing right away.
Methodology: How we choose the best DeFi ETFs
Copy link to sectionAt Invezz, we are dedicated to helping investors make informed decisions by providing authoritative, accessible, and engaging advice and recommendations. Our curated section of the best Exchange-Traded Funds (ETFs) is carefully selected by our team of experienced market analysts and reviewed by a sub-editor. This methodology outlines the rigorous process we follow to ensure our ETF recommendations are up-to-date, reliable, and insightful.
- Analyst research & recommendations: Our seasoned market analysts use their in-depth sector knowledge to identify ETFs with strong potential, ensuring they meet high standards of performance, liquidity, and market potential.
- ETF evaluation: We evaluate ETFs based on their underlying assets, historical performance, expense ratios, and tracking accuracy, alongside macroeconomic factors and sector trends.
- Fund performance reports: We assess ETFs through the latest performance reports, analyzing key metrics like returns, volatility, expense ratios, and assets under management (AUM).
- Sector analysis and external recommendations: Our detailed sector analysis, combined with recommendations from reputable sources like Barron’s and Zacks, provides an additional layer of validation for our selections.
- Quarterly review & refresh: We update our curated ETF list quarterly, re-evaluating each ETF based on the latest reports, industry developments, and market conditions to ensure our recommendations reflect the most current information available.
More of the best ETFs
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >
