Conversation with Merlin [email protected] · Thu Dec 07 2023

What are some good etf or mutual funds that have exposure to bitcoin?

Unfortunately, there are currently no ETFs or mutual funds available in the US that directly invest in or hold bitcoin. However, here are some potential options for getting bitcoin exposure:

  1. Bitcoin mining/blockchain ETFs - There are a few ETFs, like the Amplify Transformational Data Sharing ETF (BLOK) and the Bitwise Crypto Industry Innovators ETF (BITQ), that invest in public companies involved in bitcoin/blockchain such as miners, exchanges, and other related companies. This provides indirect exposure.

  2. Bitcoin futures ETFs - The ProShares Bitcoin Strategy ETF (BITO) and Valkyrie Bitcoin Strategy ETF (BTF) invest in bitcoin futures contracts rather than directly in bitcoin. This allows exposure to bitcoin price movements.

  3. Publicly traded bitcoin trusts - Grayscale Bitcoin Trust (GBTC) is a publicly traded trust that holds bitcoin, though it currently trades at a premium to the underlying BTC. The Osprey Bitcoin Trust (OBTC) is another option now trading much closer to its bitcoin holdings.

  4. International/Canadian ETFs - There are a few bitcoin ETFs available internationally, such as the Purpose Bitcoin ETF in Canada and some crypto basket ETFs in Europe. However, they may come with higher fees, taxes, etc.

So in summary, while a US spot bitcoin ETF still does not exist yet, the above options do provide various ways to gain exposure to bitcoin and the crypto market through fund vehicles. But they may come with higher risk, fees, and/or taxes compared to direct bitcoin ownership.

Investing Best ETFs As of December 01, 2023 Exchange-traded funds (ETFs) allow investors to buy a collection of stocks or other assets in just one fund with (usually) low expenses, and they trade on an exchange like stocks. ETFs have become tremendously popular in the last decade and now hold trillions of dollars in assets. With literally thousands of ETFs to choose from, where does an investor start? Below are some of the top ETFs by category, including some highly specialized funds. Showless Readmore The Bankrate promise At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for . Top equity ETFs Equity ETFs provide exposure to a portfolio of publicly traded stocks, and may be divided into several categories by where the stock is listed, the size of the company, whether it pays a dividend or what sector its in. So investors can find the kind of stock funds they want exposure to and buy only stocks that meet certain criteria. Stock ETFs tend to be more volatile than other kinds of investments such as CDs or bonds, but theyre suitable for long-term investors looking to build wealth. Some of the most popular equity ETF sectors and their historical performance (as of Sept. 29, 2023) include: Top U.S. market-cap index ETFs This kind of ETF gives investors broad exposure to publicly traded companies listed on American exchanges using a passive investment approach that tracks a major index such as the S&P 500 or Nasdaq 100. Vanguard S&P 500 ETF (VOO) 2023 YTD performance: 20.3 percent Historical performance (annual over 5 years): 12.6 percent Expense ratio: 0.03 percent Top international ETFs This kind of ETF can provide targeted exposure to international publicly traded companies broadly or by more specific geographic areas, such as Asia, Europe or emerging markets. Investing in foreign companies introduces concerns such as currency risk and governance risks, since foreign countries may not offer the same protections for investors as the U.S. does. Vanguard FTSE Developed Markets ETF (VEA) 2023 YTD performance: 11.8 percent Historical performance (annual over 5 years): 6.0 percent Expense ratio: 0.05 percent Top sector ETFs This kind of ETF gives investors a way to buy stock in specific industries, such as consumer staples, energy, financials, healthcare, technology and more. These ETFs are typically passive, meaning they track a specific preset index of stocks and simply mechanically follow the index. Vanguard Information Technology ETF (VGT) 2023 YTD performance: 45.5 percent Historical performance (annual over 5 years): 21.8 percent Expense ratio: 0.10 percent Dividend ETFs This kind of ETF gives investors a way to buy only stocks that pay a dividend. A dividend ETF is usually passively managed, meaning it mechanically tracks an index of dividend-paying firms. This kind of ETF is usually more stable than a total market ETF, and it may be attractive to those looking for investments that produce income, such as retirees. The best dividend ETFs tend to offer higher returns and low cost. Vanguard Dividend Appreciation ETF (VIG) 2023 YTD performance: 9.1 percent Historical performance (annual over 5 years): 10.9 percent Expense ratio: 0.06 percent Top bond ETFs A bond ETF provides exposure to a portfolio of bonds, which are often divided into sub-sectors depending on bond type, their issuer, maturity and other factors, allowing investors to buy exactly the kind of bonds they want. Bonds pay out interest on a schedule, and the ETF passes this income on to holders. Bond ETFs can be an attractive holding for those needing the safety of regular income, such as retirees. Some of the most popular bond ETF sectors and their returns include: Long-term bond ETFs This kind of bond ETF gives exposure to bonds with a long maturity, perhaps as long as 30 years out. Long-term bond ETFs are most exposed to changes in inte

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The rapid rise and fall of cryptocurrency prices over the past three years have undoubtedly hurt the industry's growth and sparked volatility across many bitcoin and crypto ETFs.The good news is that cryptocurrencies are on the rise again and heading into the new year with strong momentum. The two largest cryptocurrencies by assets Bitcoin (BTC/USD) and Ethereum (ETH/USD) are up significantly year-to-date to trade at new highs, with much less volatility to show for their gains. That's excellent news if you're a longtime investor.Bitcoin and crypto ETFs could get an AI boostHelping the entire digital assets arena recently is the global push into artificial intelligence (AI) by companies of all sizes. AI is the secular trend that could be the crypto and blockchain industry's savior.As one example, Vancouver-based crypto miner Hive Blockchain Technologies (HIVE) announced that it was changing its name to Hive Digital Technologies to better reflect the use of its high-performance data centers to fuel the processing power needed for generative AI tools.Moves like these are part of the Web3 maturing process that's taking place. That's a positive for future cryptocurrency investments, including the best Bitcoin and crypto ETFs that provide investors exposure to the space.Also stoking optimism in the crypto space is a recent decision by a federal judge to overturn the Securities and Exchange Commission's (SEC) attempt to block Grayscale Investments' application for a spot bitcoin ETF. Judge Neomi Rao said the SEC's decision to approve two bitcoin future ETFs but reject the application for the spot market fund was "arbitrary and capricious."The order "does not convert the Grayscale Bitcoin Trust (GBTC) product into an ETF immediately, but gives a fair basis for Grayscale to be treated in line with other Bitcoin ETF applicants," says Gautam Chhugani, senior analyst of Global Digital Assets at Bernstein. Crypto could get an additional boost on any favorable headlines surrounding the potential approval of bitcoin futures funds.It should go without saying that Bitcoin and other digital assets remain highly speculative and should be approached with extreme caution.However, those interested in more risk-averse options might consider these best bitcoin and crypto ETFs. Their asset levels might be lower than at the height of the crypto surge in late 2021, but they're returning due to promising new technologies such as AI.DisclaimerData is as of December 4, unless otherwise indicated. 1/6 (Image credit: Courtesy of Amplify ETFs) Amplify Transformational Data Sharing ETF Assets under management: $594.0 millionExpenses: 0.75%The Amplify Transformational Data Sharing ETF (BLOK, $26.40) is similar to many U.S. cryptocurrency ETFs in that it is an actively managed fund that aims to invest at least 80% of its assets in companies that are involved in developing blockchain technologies and using them for their own business.The ETF has 50 holdings at present, the top 10 of which account for about 40% of its assets.MicroStrategy (MSTR), the data analytics software company, is a top holding in BLOK, with a weighting of roughly 5%. The company is technically a data analytics software firm, however, it is more widely known for its bitcoin investments. In Q3 2023, for instance MicroStrategy bought 6,067 bitcoin. It now holds 158,400 bitcoin worth around $6.7 billion at current prices.Other top 10 holdings include Bitcoin miner Marathon Digital Holdings (MARA) and Coinbase Global (COIN), one of the world's leading cryptocurrency exchanges. Also on the list is Beyond (BYON), the internet retailer formerly known as Overstock.com that rebranded under the Bed Bath & Beyond brand after buying the bankrupt company's intellectual property for $21.5 million.However, a few interesting holdings are found outside of the top 10.Specifically, the crypto ETF invests in Block (SQ), the parent of Square and Cash App; blue chip tech giant International Business Machines (

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Featured Partner OffersLimited Time Offer Join eToro and get $10 of free Crypto!(US Only)Cryptocurrencies Available for Trade 20+Trading Commissions $0 for stocks, ETFs and optionsTrading Fees 0.4% Maker Fee / 0.6% Taker Fee The Best Bitcoin ETFs of December 2023 ProShares Bitcoin Strategy ETF (BITO) Expense ratio Assets under management Investing strategy Expense ratio Assets under management Investing strategy Why We Picked It The ProShares Bitcoin Strategy ETF is the first Bitcoin ETF approved to trade in U.S. markets. Upon its debut in October 2021, BITO became one of the most heavily traded ETFs in market history, attracting around $1 billion in assets within a few days. BITO is an actively managed fund that is seeking capital appreciation through transparent exposure to Bitcoin futures contracts. It may also hold Treasury securities and cash. ProShares Short Bitcoin ETF (BITI) Expense ratio Assets under management Investing strategy Decline in Bitcoin futures Expense ratio Assets under management Investing strategy Decline in Bitcoin futures Why We Picked It ProShares Short Bitcoin ETF launched in June 2022. It is currently the only ETF approved by the SEC with the goal of trading the inverse of Bitcoins daily performance. BITI attempts to accomplish this goal by returning the inverse of the S&P CME Bitcoin Futures Index for a single day at a time. The fund maintains its inverse exposure by trading in the cash-settled futures market. In this market, the seller pays the buyer if the price of the futures contract goes up, and the buyer pays the seller when the contracts price goes down. VanEck Bitcoin Strategy ETF (XBTF) Expense ratio Assets under management Investing strategy Expense ratio Assets under management Investing strategy Why We Picked It VanEck Bitcoin Strategy ETF is an actively managed fund that launched in November 2021. XBTF aims to provide capital appreciation by investing in BTC futures and may invest some of its assets in Treasuries and cash. One advantage of XBTF is that its structured as a C-corp, unlike many other ETFs that are registered investment corporations. This is a tax-efficient structure because C-corps are not required to distribute long-term capital gains to investors as dividends. For investors, this approach may lower taxable distributions and allow them to keep more money invested in the fund. Valkyrie Bitcoin Strategy ETF (BTF) Expense ratio Assets under management Investing strategy Expense ratio Assets under management Investing strategy Why We Picked It The Valkyrie Bitcoin Strategy ETF (BTF) is an actively managed ETF that launched in October 2021, hot on the heels of BITO. The Valkyrie Bitcoin Strategy fund aims to spend as close to 100% of its net assets as it can in Bitcoin futures contracts. Any remaining assets will be held in U.S. government securities, money market funds and corporate bonds. Note that BTF, like most of the funds included in this list, aims to invest primarily in Bitcoin futures. Simplify Bitcoin Strategy PLUS Inc ETF (MAXI) Expense ratio Assets Under Management Investing Strategy Expense ratio Assets Under Management Investing Strategy Why We Picked It Simplify Bitcoin Strategy PLUS Inc ETF is an actively managed fund that launched in September 2022. This makes MAXI the most recently launched fund included in this list. Like other Bitcoin funds, MAXI cant invest in BTC directly. Rather, it aims to provide capital appreciation by investing in BTC futures. However, it also uses short-dated put or call spreads on global equity indices to help generate income for its investors. Global X Blockchain & Bitcoin Strategy ETF (BITS) Expense ratio Assets under management Investing strategy Bitcoin futures and blockchain stocks Expense ratio Assets under management Investing strategy Bitcoin futures and blockchain stocks Why We Picked It The Global X Blockchain & Bitcoin Strategy ETF (BITS) is an actively managed fund that launched in November 2021. BITS splits its hold

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