Cryptocurrency exchange-traded funds (ETFs) have been among the top-performing investments in 2023, with some recording impressive gains, close to or above 100% for the year. These investment vehicles provide an easy way for traditional investors to gain exposure to the cryptocurrency market. Let’s spotlight the top 5 best crypto ETFs of 2023:
Valkyrie Bitcoin Miners ETF (WGMI): WGMI is an actively managed crypto ETF that focuses on companies generating at least 50% of their revenue from bitcoin mining operations or related services. Instead of holding Bitcoin directly or futures, it invests in stocks and American depositary receipts (ADRs) listed on global exchanges. It delivered an impressive 108.28% return in 2023.
Bitwise Crypto Industry Innovators ETF (BITQ): BITQ aims to track a modified market-cap-weighted index of global companies involved in supporting the cryptocurrency economy. It categorizes companies into “Crypto Innovators” and “Crypto Economy” tiers. BITQ delivered a return of 97.64% in 2023.
Invesco Alerian Galaxy Crypto Economy ETF (SATO): SATO tracks an index composed of companies involved in cryptocurrency, crypto mining, cryptocurrency buying, enabling technologies, and exchange-traded products. It also includes private investment trusts like the Grayscale Bitcoin Trust (GBTC). In 2023, SATO recorded a return of 97.42%.
Global X Blockchain & Bitcoin Strategy ETF (BITS): BITS is an actively managed ETF aiming to capture the growth potential of blockchain companies and bitcoin futures. It does not invest directly in Bitcoin but provides exposure to blockchain companies. In 2023, BITS saw a return of 73.68%.
Hashdex Bitcoin Futures ETF (DEFI): DEFI tracks an index that provides the average closing settlement prices for the front-month bitcoin futures contracts listed on the Chicago Mercantile Exchange. It recorded a return of 51.73% in 2023.