By Steve Burnett
If you wish to invest in crypto but are not comfortable because of the risks involved, you’re not alone. There are indeed risks associated with buying crypto, ranging from scams and hacks to phishing attacks. You may think the best way is to stay out, but you’re leaving money on the table.
The crypto industry is a fast-growing one no doubt, and with its growth comes opportunities to make money. There are ways you can do that without getting exposed to the enormous risk associated with the industry.
One of the best ways is to buy crypto exchange traded funds (ETFs). They are just like normal ETFs, only they track the prices of cryptocurrencies. By acquiring such ETFs, you’ll get to benefit from the price growth of the crypto they track.
The ETF managers manage your investment professionally, reducing your risk of losing money. This is an effective way to earn from this booming industry without getting exposed to the risks associated with it.
The following are the best performing crypto ETFs that you can buy in 2023. The list is not exhaustive, but you can invest in any of these and be sure you’re making the right investment decision.
ProShares Bitcoin Strategy ETF
This ETF trades under the BITO symbol. It is the first Bitcoin ETF to receive approval in the US. The launch was a great success, with it getting $1 billion in assets after two days of launching. While it invests in Bitcoin futures and not in spot Bitcoin, it does not involve traders buying futures contracts directly.
Also read:You can however buy shares of the company. The fund then pulls investors’ funds together and invests them in these futures to earn profits for them. You can also invest in US treasury bills through ProShares. They offer the shortest time to maturity, which means you can get your earnings fast and reinvest if you wish to.
The fund currently has over $1 billion assets under management and offers a minimum investment of $10,000.
Valkyrie Bitcoin Strategy ETF
This fund trades as BTF, and is one of the newest crypto ETFs. Launched in 2022, BTF does not invest directly in Bitcoin, which is a relief. Instead, it invests in Bitcoin futures traded on the Chicago Mercantile Exchange through a subsidiary of the Cayman Islands company.
It tries to acquire futures contracts equal to 100% of its net assets, and then offers shares that investors can buy and sell on the market at the market price. That way, you get to invest in the shares of the fund and not in the direct trading of the futures contracts or Bitcoin, which is what you want, right?
The fund is however for accredited investors only. There is no performance fee, but there’s a management fee of 0.4%. BTF has $44.88 million in assets under management, and the minimum investment is $25,000.
VanEck Bitcoin Strategy ETF
VanEck is known for its several failed attempts to secure a spot bitcoin ETF license. What it does have though is a bitcoin ETF. It is one of the latest ETFs in town and trades as XBTF. It is also the first U.S.-linked ETF and it launched in April 2021.
XBTF is the cheapest bitcoin ETF, and of course you can only buy the shares and sell them on the Cboe exchange. However, you can only trade the shares through a direct brokerage account with portfolio management and various investment products.
One upside of the fund is that it provides freedom and flexibility that allows you to manage the investment. If you like, you can also invest in stocks, bonds, and cash through the fund. XBTF has $28.1 million assets under management, and the minimum investment is $100,000.
Conclusion
If you’re looking for a way to invest in bitcoin indirectly, these are the best fund options to choose from and save yourself the anxiety associated with investing in crypto.
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