Investing in the cryptocurrency sector has become much easier thanks to the rise of a range of exchange traded products (ETFs) within this sector. Earlier this year, the Securities and Exchange Commission (SEC) approved spot ETFs for Bitcoin and Ethereum, paving the way for a wave of institutional capital to begin flowing into this sector.
In early days, capital certainly did flow in. But as expected, fund inflows and outflows have varied in recent months, as investors look to gauge how Bitcoin and Ethereum might perform relative to the overall market.
Now, there are other indexes out there that track a broader range of these assets using futures contracts. But I thought I’d highlight a few different options for investors to consider focusing mostly on Bitcoin and Ethereum, because that’s where most of the action is right now (and likely will be) moving forward.
Without further ado, here are three crypto ETFs those bullish on the innovative nature of this sector may want to consider.
Key Points About This Article:
- The crypto sector has seen a rise in interest from a range of investors, thanks in part to the rise of spot ETFs.
- Here are three top crypto ETFs long-term investors may want to consider right now.
- If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
iShares Bitcoin Trust (IBIT)
The crypto market is largely expected to climb in the coming years, as that aforementioned wave of investor capital continues to come into this space. Much of that capital is expected to flow into Bitcoin, the world’s largest and most liquid digital asset.
One of the top ETFs tracking Bitcoin investors may want to consider is the iShares Bitcoin Trust ETF (NASDAQ:IBIT), priced at a much more manageable $35 per share at the time of writing. Instead of shelling out thousands of dollars for a small slice of Bitcoin, this ETF breaks up Bitcoin ownership into smaller chunks, and is publicly traded. That means no need to set up a wallet and engage in the blockchain – this ETF provides direct exposure to Bitcoin at a fraction of the cost (and a small management expense ratio at that).
Previous halving have typically led to surges in Bitcoin prices, and many investors are still bullish on the runway for Bitcoin in this regard, particularly with a range of ETFs opening up new buying demand for this token. For those bullish on this token, this is a top ETF I think is worth considering right now.
Grayscale Ethereum Trust (ETHE)
Moving onto the world’s second-largest cryptocurrency, Ethereum, the Grayscale Ethereum Trust (NYSEARCA:ETHE) remains a top option for investors looking for additional diversification in this space beyond Bitcoin. Ethereum remains the largest decentralized finance ecosystem in the crypto space, meaning this token provides an indirect investment opportunity for those looking to benefit from rising demand for applications that “do something” on the blockchain.
Like the other ETFs on this list, ETHE has seen strong initial inflows. But in recent days, that trend has somewhat dissipated, with this ETF seeing its largest single-day outflow of $80.6 million on September 26, driven by profit-taking after ether’s price surged nearly 20%. Other ether ETFs showed minimal changes, but this large outflow does appear to have some investors spooked.
I think Ethereum (and Bitcoin for that matter) are long-term plays. Accordingly, investors looking to profit from near-term volatility may want to consider limping into a position on this weakness.
For those investors out there who are as bullish on DeFi technology as I am, this is a top option I think is worth considering at present. With more than $9 billion in assets under management and a low MER, this is a top fund I think is worth paying attention to for investors looking for liquidity in this space.
ProShares Bitcoin Strategy ETF (BITO)
Investors seeking Bitcoin exposure with income potential can consider the actively managed ProShares Bitcoin ETF (NYSEARCA:BITO). Unlike new spot Bitcoin ETFs that focus solely on capital appreciation, BITO invests in Bitcoin futures and swaps through a subsidiary, collateralized by Treasury bills. Gains from these investments are distributed to BITO shareholders as dividends, with the last monthly payout being approximately $1.21 per share on September 10, 2024. However, distributions can vary and are not guaranteed, and BITO has a 0.95% expense ratio.
Recently, investors in the BITO saw new options for September 2025 begin trading today. With 364 days until expiration, these contracts offer sellers the chance for higher premiums compared to shorter-term options. Stock Options Channel identified a notable put contract at a $17.00 strike price, currently bidding at $2.55.
Selling this put would obligate the investor to buy shares at $17.00 while collecting the premium, effectively lowering the cost basis to $14.45 per share. This presents an appealing alternative for those interested in BITO, currently priced at $17.35 per share.
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