The 3 Best Performing Cryptocurrency/Blockchain ETFs In August

Blockchain, Technology, Smart, Bitcoin, Money

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Instead of investing in cryptocurrency futures or establishing a digital wallet to take custody of the coins themselves give consideration to the following ETFs that continue to outperform the sector dramatically.

Of the 30 non-inverse or short cryptocurrency/blockchain ETFs, mutual funds, and trusts (see here) trading on Canadian and American stock exchanges, there are three that almost exclusively own the stocks of companies that use or develop blockchain technology rather than focusing narrowly on tracking the price of individual cryptocurrencies. Here are the details:

Best Performing Cryptocurrency/Blockchain ETFs

  1. The CI Galaxy Blockchain ETF (CBCX): +9.2% in August; +2.7% since its launch in April
    • The ETF was launched on April 22nd, 2022, by CI Global Asset Management, and trades on the Toronto Stock Exchange (TSX)
    • It seeks to replicate the performance of the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity Index, hedged to Canadian dollars, which intends to track the performance of companies engaged in the development of blockchain technologies, as well as businesses operating and developing the blockchain ecosystem.
    • It is moderately diversified with 35 holdings, with its largest holding amounting to 10.3% of net assets.
    • Its holdings are concentrated in the following sectors: Financials (46%) and Technology (47%).
    • Its top ten holdings, in descending order, are Marathon Digital (MARA), HIVE Blockchain (HIVE), Riot Blockchain (RIOT), Silvergate Capital (SI), MicroStrategy (MSTR), Coinbase Global (COIN), Hut 8 Mining (HUT), Canaan Inc. (CAN), Core Scientific (CORZ) and Block Inc. (SQ).
    • It has a CUSIP number of 12546E105*
    • It has an expense ratio of 0.50%.
    • It has no dividend.
    • It has approximately Canadian $670K Assets Under Management (AUM).
    • Go here for a chart of the most recent pricing.
  2. Simplify US Equity PLUS GBTC ETF (SPBC): -2.3% in August and -21.0% YTD
    • SPBC seeks to provide capital appreciation by providing an efficient way for asset allocators to add Bitcoin exposure to portfolios. It targets a 100% investment in U.S. equities while simultaneously providing a 10% exposure to Bitcoin via the Grayscale Bitcoin Trust (GBTC).
    • It does not invest directly in bitcoin, bitcoin futures, or other cryptocurrencies and, as such, does not track the price movements of cryptocurrencies.
    • Its holdings are concentrated in just three areas, namely: iShares Core S&P 500 ETF (IVV): 73.9%; September S&P e -mini Futures contract: (13.0%); and Grayscale Bitcoin Trust (GBTC): 9.2%.
    • The ETF has an expense ratio of 0.51%.
    • It has a dividend yield of 2.57%
    • It has Assets Under Management (AUM): US$48.8M
    • Go here for a chart of the most recent pricing.
  3. First Trust Indxx Innovative Transaction & Process ETF (LEGR): -5.3% in August and -20.8% YTD
    • LEGR is a passively managed fund that first launched in January 2018. It tracks the performance of the Indxx Blockchain Index.
    • It only invest in companies that have devoted real resources to actually using blockchain technology - either by currently deploying blockchain technology or actively developing and, as such, excludes companies that are merely exploring this new technology.
    • It is highly diversified with 108 holdings, with no single holding weighted at more than 1.8% of net assets.
    • It concentrates on the following sectors: Financials (41%), Technology (26%), Telecommunications (9%), Consumer Cyclicals (9%) and Industrials (6%).
    • Its top ten holdings, in descending order, are: ICICI Bank (IBN), (JD), Deutsche Telekom (DTEGF), Baidu Inc. (BIDU), IBM (IBM), Honeywell (HON), Alibaba (BABA), VMware Inc. (VMW), Mastercard (MA) and Engie SA (ENGIY).
    • It has an expense ratio of 0.65%.
    • It has a dividend yield of 3.14%
    • It has Assets Under Management (AUM) of US$113.9M
    • Go here for a chart of the most recent pricing.

Bitcoin and Ethereum Performances

For the record, Bitcoin was DOWN 17.1% in August and Ethereum was UP 4.6%, and they are DOWN 53.8% and 52.9%, respectively, YTD.

Inverse and Short Cryptocurrency ETFs

Investors also have the option to go long Bitcoin through managed future ETFs as well as play the other side and bet against the cryptocurrency with one of the following ETFs:

  • Horizons BetaPro Inverse Bitcoin ETF (BITI.U)
    • It is designed to provide daily investment results through short investments in bitcoin futures that endeavor to correspond to the single inverse (opposite) performance of an index that replicates the returns generated over time through long notional investments in Bitcoin Futures.
    • It has a CUSIP number of 74347G291*
    • Go here for chart of most recent pricing.
  • ProShares Short Bitcoin Strategy ETF (BITI)
    • It was launched on June 21st, 2022, and is designed to provide inverse exposure to the daily return of bitcoin, minus fees and costs.
    • It trades in futures contracts listed on the Chicago Mercantile Exchange, rather in than the “physical” currency itself.
    • Go here for chart of most recent pricing.
  • The Direxion Bitcoin Strategy Bear ETF (REKT)
    • Recently filed in the U.S. to deliver investors a -1X inverse return of Bitcoin by providing short exposure to front-month bitcoin futures contracts traded on the Chicago Mercantile Exchange.
    • ProShares has also made a similar filing to that of Direxion.

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*Please note that the Horizons BetaPro Inverse Bitcoin ETF trades on the Canadian TSX in U.S. dollars as designated by the "U". If you are American and wish to buy it or ...

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