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  • Writer's pictureRealFacts Editorial Team

4 Top-Rated Crypto ETFs for Diversified Exposure and Performance


Cryptocurrency

The Cryptocurrency Boom and ETF Strategy 


The cryptocurrency market has seen explosive growth over the past year. Key cryptocurrencies have experienced significant price increases, Bitcoin has surged ~170% (BTC-USD), Ethereum about 100% (ETH-USD), and Solana more than 930% (SOL-USD). This growth is indicative of the rising interest and participation in the cryptocurrency market. 

According to Statista Market Insights, the number of cryptocurrency users worldwide is projected to reach 992.50 million by 2028. This growth is driven by increasing institutional acceptance and the expanding use of digital assets in cross national border transactions.


Despite the excitement, and FOMO “fear of missing out” on these gains you may have experienced, it is important to recognize the inherent risks and volatility in the cryptocurrency market, which can be challenging for individual investors to navigate. So we have researched 4 Crypto ETFs that are rated all a Strong Buy from Seeking Alpha. These ETFs provide diversified exposure to directly buying cryptocurrency as well as the financial and technology within the industry. Below you can see the performance of these EFTs as they have all beat the S&P 500 index last year. 


S&P 500: 25.3% 

FDIG: 41.67% 

GBTC: 239.35% 

GDLC: 219.17% 

BITW: 242.91%


Graph of the ETFs

4. Fidelity Crypto Industry and Digital Payments ETF (NASDAQ: FDIG) 

Assets (AUM): $107.67 million 

Quant Rating: Strong Buy 

Expense Ratio: 0.39% 

Description: This index reflects a global exposure of companies involved in cryptocurrency, blockchain technology, and digital payments processing. 

Risk Considerations: FDIG has high risk due to its concentration in small-cap growth stocks and high standard deviation. Liquidity can be an issue, with a 90-day average trading volume of barely more than 100,000 shares and a 30-day median bid/ask spread upwards of half a percentage point. It is prudent to use limit orders during trading. 

Allocation: Heavily allocated to small-cap growth, with only 6% invested in large caps. The ETF’s P/E ratio is over 27, but it has shown robust long-term earnings growth.


Chart of top 10 holdings

3. Grayscale Digital Large Cap Fund ETF (OTCQX: GDLC) 

Assets (AUM): $582.92 million 

Quant Rating: Strong Buy 

Expense Ratio: 2.50% 

Performance: Up 322% in the past 12 months, with an 'A+' rating in Momentum. Holdings: BTC (70%), ETH (23%), SOL (4%), Ripple (XRP-USD) (1%), and Avalanche (AVAX-USD) (0.70%). 

Liquidity: Rated 'B' in Liquidity with an average daily dollar volume of $2.37 million. Volatility: Annualized volatility of 71%.


Chart of assets by cryptocurrency

2. Bitwise 10 Crypto Index Fund ETF (OTC: BITW) 

Assets (AUM): $1.08 billion 

Quant Rating: Strong Buy 

Expense Ratio: 2.50% 

Performance: Up over 280% in the past 12 months. 

Holdings: Bitcoin (68.8%), Ethereum (22.6%), Solana, XRP, Cardano, Avalanche, Chainlink, Polkadot, Bitcoin Cash, and NEAR Protocol. 

Liquidity: Rated 'B' with a daily dollar volume of $4.05 million. 

Volatility: Annualized volatility of 67% and tracking error of 58%.


Chart of holdings by cryptocurrency

1. Grayscale Bitcoin Trust ETF (NYSEARCA: GBTC) 

Assets (AUM): $19.76 billion 

Quant Rating: Strong Buy 

Expense Ratio: 1.50% 

Performance: Up over 340% in the past year, with a five-year return of more than 490%. GBTC has significantly outperformed in the last six months and 30 days. 

Holdings: Invests solely and passively in Bitcoin exposure with buying, storing, and safekeeping on the blockchain. 

Liquidity: Rated 'A+' in Liquidity with a daily dollar volume of $620.65 million. Volatility: Annualized volatility of 58% and a one-year tracking error of 58%.


Chart of momentum grade

Risks and Considerations 


Investing in crypto-related securities carries significant risks. The market is highly volatile and speculative, and it operates in an environment of regulatory uncertainty. Sudden regulatory changes or adverse market events can lead to significant declines in value. Therefore, investors must be aware of these risks and consider their risk tolerance before investing in crypto-related assets. 


Cryptocurrencies have shown remarkable growth, with the total number of users expected to surpass 992 million by 2028. This growth is supported by increasing institutional acceptance and the expanding use of digital assets in cross-border transactions. However, due to the volatility and speculative nature of the market, investors are advised to consider diversified investment options such as ETFs. The Fidelity Crypto Industry and Digital Payments ETF, Grayscale Digital Large Cap Fund ETF, Bitwise 10 Crypto Index Fund ETF, and Grayscale Bitcoin Trust ETF are all highly rated options that provide exposure to the cryptocurrency market while offering levels of diversification and risk management.

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