ETFsFunds

Crypto’s Winning Formula: Why Is It Worth To Invest in ETF Sectors, Not Coins

4 Mins read

A cryptocurrency ETF is a fund that is comprised of cryptocurrencies. Most of the ETFs trail a basket of assets or an index. On the contrary, when it comes to the cryptocurrency ETF, it traces the price of digital tokens. Sometimes, it tracks more than one. And the share price of the cryptocurrency ETFs oscillates diurnally, relying upon the buy or sales of the traders.

In the coming section, we will look at the top five ETFs that may be worth investing in 2022.  

ProShares Bitcoin Strategy ETF (BITO)

BITO is an exchange-traded fund that is assiduously functioning. It endeavors capital value by investing in futures contracts of Bitcoin. It is the first cryptocurrency fund on the market that is based on futures contracts. Also, as per the valuation by assets under management, BITO is the greatest of the market.

BITO price history

BITO daily chart
BITO daily chart 

Where to buy ProShares Bitcoin Strategy ETF?

BITO is currently trading around $28.23 price area and trying to recover upside. BITO has nose-dived after hitting an all-time high of $45 price area. So, if the price can surge over the $30 price area, it is wise to invest in BITO with a long-term perspective.   

What are the perspectives of the BITO?

Bitcoin has been reinstated to the level of $60,000 again from scratch of being half of its value. Similar to Bitcoin, there is also potential volatility for BITO. When investing or trading ProShares Bitcoin Strategy ETF, traders may jeopardize up to 10% of their portfolios as suggested.

What is Valkyrie Bitcoin Strategy ETF (BTF)?

This actively managed ETF was launched just a few days after the BITO on the NASDAQ. Unlike BITO, BTF does not invest straight away in Bitcoin. It rather possesses the futures of Chicago Mercantile Exchange Bitcoin. However, the BTF expense ratio is kind of similar to others. Still managed to surpass its peers of the realm by assiduous governance strategy.

BTF price history

BTF daily chart
BTF daily chart 

Where to buy Valkyrie Bitcoin Strategy ETF (BTF)?

BTF was residing below the $20 price area for an extended period. BTF is currently trading around the $17.48 price area and pushing upward. So, you can invest in BTF if the price can break over the $20 price area in the coming days. 

What are the perspectives of the BFT?

Valkyrie Bitcoin Strategy ETF has approximately $60 million in assets under management along with a 0.95% of expense ratio. BTF is disputed to be even more approachable for the traders since BTF proposed introducing funds that are more focused on cryptocurrencies over the near future.

What is the VanEck Bitcoin Strategy ETF (XBTF)?

The VanEck Bitcoin Strategy ETF obtained approval from the SEC in October 2021 and launched in November 2021. It is in third place in the list of cryptocurrency ETFs. It is anticipated to gain adoption due to VanEck’s esteem as one of the prominent investment firms. XBTF was introduced on the NASDAQ stock exchange and traded around $60 per share.

XBTF price history

XBTF daily chart
XBTF daily chart 

Where to buy VanEck Bitcoin Strategy ETF?

XBTF is currently residing around a $44.17 price area after an impulsive breakout over a $40 psychological level. So, you can invest in XBTF as it seems the price will shoot further upward in the days ahead. 

What are the perspectives of the XBTF?

The ultimate target of VanEck’s is a Bitcoin spot ETF, though the SEC rejected the XBTF spot ETF approach a few days after the launching of the XBTF fund. The SEC has persistently made reference to the potential for fraud and market manipulation as the reason for spot fund rejections. The XBTF fund has under-management assets of $22.1 million.

What is Global X Blockchain and Bitcoin Strategy ETF (BITS)?

It is an actively-superintendent fund on the lookout for capital valuation by investing in a merger of organizations associated with blockchain technology and futures contracts of Bitcoin.

BITS price history

BITS daily chart
BITS daily chart 

Where to buy Global X Blockchain and Bitcoin Strategy ETF?

BITS has been holding bullish momentum over the $15 price area for days. So, if the price can surge above the $20 psychological price level, you can invest in BITS with a long-term perspective. 

What are the perspectives of the BITS?

BITS endeavors to seize the long-term progress potential of the blockchain and cryptocurrency theme. The Fund holds long positions in futures contracts of Bitcoin and puts money in organizations deployed to potentially gain from the escalated adoption of blockchain technology. However, BITS is not into diametrically investing in Bitcoin.

What is Valkyrie Balance Sheet Opportunities ETF (VBB)?

Instead of investing in Bitcoin and Bitcoin futures, the Valkyrie Balance Sheet Opportunities ETF invests in 20 distinct public organizations that possess Bitcoin on their balance sheets. Also, VBB provides investors with an assorted basket of highly paralleled priced crypto tech stocks associated with Bitcoin and blockchain.

VBB price history

VBB daily chart
VBB daily chart 

Where to buy Valkyrie Balance Sheet opportunities ETF?

VBB is currently trading around a $21 price area and recovering higher. After bouncing from the $17 to $18 price area, the bulls pushed the price upside impulsively and broke over the $20 price level. So, it is a good time to invest in VBB as it seems the bulls may push the price further in the coming days.       

What are the perspectives of the VBB?

This ETF puts money into the organizations having both innovative balance sheets and the best potential total return. It considers the benchmarks like the price to outcomes, price to book, and growth ratios. Valkyrie pays heeds to the financial yardstick back-to-back with the blockchain’s percentage that organizations have on their balance sheets in determining the weighting.

Pros and cons

ProsCons
ETFs are distributed by the supervised organizations that diminish the risks of scams linked to cryptocurrency trading. Investing in cryptocurrency funds will not bring ownership for its shares.
Such funds allow traders to diversify their cryptocurrency trading since ETFs carry a basket of cryptocurrencies and crypto.Compared to traditional ETFs, the fees are relatively higher for crypto exchange-trading funds trading.
They can be managed through conventional brokerage accounts.Such funds may not provide precise price tracking due to their given leverage.

Final thoughts

Finally, cryptocurrency ETFs give derivative directions to digital currency by possessing the futures contracts and occasionally business equities subjected to blockchain technology. Hence, taking possession of the physical assets is impossible for the shareowners. It is essential to keep in mind that utilizing futures will cause a loss of connection with the tracked asset’s underlying value. It can influence the ETF’s efficiency to diverge from its model cryptocurrency.

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