3 Crypto ETFs to Boost Your Portfolio

|April 17, 2021

There’s a new boss on Wall Street, and speculation is running wild…

What will he do first?

Will he hand out pink slips? Fill the place with his golfing buddies? Or prop his feet on the desk and smoke a fat cigar?

Gary Gensler was confirmed this week to head the SEC. During his hearings, he pledged to tackle a variety of hot-button issues. On his list were digital currencies, the GameStop trading mania and how corporate America prioritizes environmental, social and governance issues.

The pro-regulation banker is no stranger to crypto. He’s a vocal fan of the technology, saying blockchain technology could be a boon for financial innovation.

He even taught a course on blockchain and digital currencies at MIT.

So crypto fans are hopeful he will approve the creation of the very first U.S.-based Bitcoin exchange-traded fund (ETF).

That’s big for several reasons… and why we have three crypto-friendly tickers for you today.

The Final Hurdle?

Bitcoin ETFs may just be the final hurdle the crypto market jumps over to be seen as a legitimate asset class – at least in Wall Street’s eyes. These funds would track the price of Bitcoin… giving investors exposure to the high-flying crypto within the stock market.

Many proposals for Bitcoin ETFs have made their way to the SEC’s desk over the past eight years. All have been rejected because of concerns over manipulation and liquidity. But those concerns should take a back seat as real-world crypto adoption continues at a break-neck pace.

At last count, nine proposals are currently waiting for judgment as Gensler decorates his new office.

Now, if you’ve been following along, you know Manward is a huge fan of cryptos. They’re a big part of our Modern Asset Portfolio and our faster-paced trading research service Alpha Money Flow. And we recommend investing in them directly through crypto exchanges.

Simply put, it’s the surest way to the biggest profits.

But we’re also fans of broader access… period. And that’s where crypto ETFs come in. They can help investors get exposure to cryptos where direct investing on a crypto exchange may not be possible… or if your risk tolerance is low.

So while we wait for the SEC’s decision, we have three crypto-themed ETFs for you today.

These are for anyone who has yet to dive into cryptos (shame, shame)… or is looking for diverse exposure.

Look to the North

Our first ETF actually gives you access to Bitcoin. Crypto, like cannabis, is another asset where Canada is ahead of the game. The country launched the first North American Bitcoin ETF, the Purpose Bitcoin ETF (BTCC), just two months ago.

And in that short time, the fund has already hit $1 billion in assets under management. That’s a huge sign for the demand a U.S.-based fund would bring.

The ETF purchases Bitcoin and holds it in cold storage… similar to how gold and silver ETFs work. This allows investors to get in on Bitcoin without having to purchase and store the digital currency themselves.

It trades on the Toronto Stock Exchange (TSX), but you can pick up shares using U.S. dollars under the ticker BTCC.U.

Amplify Your Crypto Exposure

If you want to get the widest crypto exposure for your investing dollars, look to the Amplify Transformational Data Sharing ETF (BLOK).

This fund targets “transformational data sharing technologies” – meaning, it looks for companies involved in blockchain technology. That includes leading crypto companies, such as Galaxy Digital, Marathon Digital, Voyager Digital, Hut 8 Mining, Hive Blockchain, Riot Blockchain and Argo Blockchain. These make up seven of the fund’s top 10 holdings.

BLOK is also one of the top-performing ETFs of 2021 so far, having gained 71.7% since the start of the year.

Transform Your Portfolio

And finally, you can invest in a basket of companies that are all-in on Bitcoin through the brand-new VanEck Vectors Digital Transformation ETF (DAPP).

The fund launched just this week… and its holdings include companies like MicroStrategy, Riot Blockchain and Square. Basically, companies that are investing in Bitcoin themselves or are involved in the “digital asset ecosphere.” This includes everything from miners and digital asset exchanges to storage solutions.

ETFs are an excellent way to get exposure to hot markets without having to build a portfolio of stocks on your own.

And in the case of crypto… they can help you get in on the most transformational market we’ve seen in our lifetime.

So if you’ve been curious about crypto… or haven’t been sure how to start… try these ETFs on for size.

Amanda Heckman
Amanda Heckman

Amanda Heckman is the editorial director of Manward Press. With unrivaled meticulousness, she has spent the past dozen or so years – give or take a few sabbaticals – sharpening Andy’s already razorlike wit. A classically trained musician and a skilled writer in her own right, Amanda takes an artistic approach to the complex world of investing. Her skill has led her to work with numerous bestselling authors, award-winning financial gurus and – lucky for us – the fine folks at Manward Press.