Introduction:
Cryptocurrencies have now been around for over a decade and since the inception of Bitcoin and later Ethereum, a new asset class has risen. With global monetary policies pointing to the creation of more currency, more and more companies and institutions see the logic of protecting their wealth against the erosion of their treasury balances' purchasing power that comes from excessive central bank money printing.
However, for many people managing a well-designed crypto portfolio is a bridge too far. Investing in Bitcoin and cryptocurrency ETF's might offer a solution. Another advantage is that you don't need to buy and monitor a crypto portfolio yourself. Here is a list of the biggest crypto ETF's.
Amplify Transformational Data Sharing ETF (NYSEARCA: BLOK)
BLOK offers you exposure to an actively managed ETF that seeks to provide a total return by investing at least 80% of its net assets in equity securities of companies actively involved in the development and utilization of blockchain technologies. Its top 3 holdings are MicroStrategy Inc (8.05%), Galaxy Digital Holdings LTD (4.96%), and Marathon Patent Group Inc. (4.12%). The fund is allocated for 60% towards North America and 36% towards Asia Pacific.
Good to know: Michael Saylor, the CEO of MicroStrategy is the ultimate Bitcoin evangelist and recently held a conference educating over 7000 companies' executives on how to invest in Bitcoin to protect their shareholder's wealth as well as their companies' financial strength.
Purpose Bitcoin ETF (Toronto Stock Exchange: BTCC)
Today is a big day for Bitcoin: Canadian financial regulators approved the Purpose Bitcoin ETF, the world's first publicly traded Bitcoin ETF in North America, beating the US who lags in fintech legislation. BTCC will seek to replicate the performance of the Bitcoin price, minus the fees and expenses related to the ETF.
The Fund primarily invest long-term in Bitcoin, providing its Unithodlers exposure to Bitcoin's long-term capital appreciation. Cidel Trust Company is the custodian of the ETF and Tyler and Cameron Winklevoss' Gemini trust Company functions as the sub-custodian. The ETF will be audited by Ernst and Young.
Good to know: Tyler and Cameron Winklevoss are early Bitcoin adopters and pioneers and this ETF might give the US legislators a push to get things moving forward or loose the early advantage position, with several countries now working on crypto ETF's.
VanEck Vectors Bitcoin ETN (VBTC-DE:XETRA)
The VanEck Vectors Bitcoin ETN is a fully-collateralized exchange traded product incorporated in Liechtenstein. It seeks to replicate the value and yield performance of the MVIS CryptoCompare Bitcoin VWAP Close Index (MVBTCV Index). The product is 100% collateralized by bitcoin and stored with a regulated crypto custodian.
Good to know: The VanEck Investment Case for Bitcoin report is an must read for the willing investor to comprehend why Bitcoin is important.
Grayscale Bitcoin Investment Trust (OTCQX:GBTC)
The Grayscale Bitcoin Investment Trust is a publicly trading investment product pegging its share price to the TradeBlock XBX 24-hour bitcoin index. It debuted in 2013 (!) as The Bitcoin Investment Trust and received FINRA approval. Althoug technocally not an ETF, GBTC is modeled on popular comodity investment products such as the SPDR Gold Trust.
Good to know: GBTC can be implemented within tax-advantaged accounts like IRAs or 401(k)s. On the flip side investors pay a high premium for their Bitcoin, although the improved security such as insured cold-storage might be worth it.
