For cryptocurrencies, 2021 was a pivotal year. As institutional and retail investors embraced digital currencies, crypto tokens reached record highs led by and .
Though there’s still no pure-play cryptocurrency ETF trading on the major US indices with which to invest directly in digital tokens, we now have several exchange-traded products (ETPs) that provide access to some cryptos, via companies at the center of the growth in the digital asset space and firms that develop blockchain technology.
We previously covered several of these funds. They include (in alphabetical order):
Amplify Transformational Data Sharing ETF (NYSE:)— down 26.6% year-to-date (YTD);
First Trust Indxx Innovative Transaction & Process ETF (NASDAQ:)—down 12.9% YTD;
Grayscale Bitcoin Trust (BTC) (OTC:)—down 25.9% YTD;
Grayscale Ethereum Trust (ETH) (OTC:)—down 39.5% YTD;
Global X Blockchain ETF (NASDAQ:)—down 38.3% YTD;
ProShares Bitcoin Strategy ETF (NYSE:)—down 15.8% YTD;
Valkyrie Bitcoin Strategy ETF (NASDAQ:)—down 15.6% YTD;
VanEck Bitcoin Strategy ETF (NYSE:)—down 19.9% YTD.
Of these names, GBTC and ETHE are trusts that invest in Bitcoin and Ethereum directly. On the other hand, BITO, BTF, and XBTF are futures-based funds, providing managed access to contracts. And finally, BLOK and LEGR invest in companies in the digital economy sector.
Despite the keen interest by some on Wall Street in these cryptos and related businesses, 2022 has not been a good year for the industry. As the returns above show, most holdings in these ETPs have recently been under significant pressure. Of note, Bitcoin and Ethereum lost 15.7% and 29.8%, respectively.
Today’s article introduces two exchange-traded funds (ETFs) for contrarians who want to take advantage of the decline in the crypto space. However, we should remind potential investors that these thematic funds typically have high expense ratios. Also, given the nature of the crypto industry, the prices of their holdings should…
