5 of the Best Performing Crypto-Related ETFs in 2023

With so much attention on the latest bitcoin spot ETFs it's easy to lose sight of the broader range of crypto-related ETFs which don’t only track a single cryptocurrency but give investors access to investable baskets including cryptocurrencies, and investments in crypto-related companies.  

In this post we’ll take a look at 2023's Top 5 performing crypto-related ETFs, based on analysis by etf.com.

5 of 2023's best-performing crypto-related ETFs

(BITQ) Bitwise Crypto Industry Innovators ETF

Seeks to track an index of global companies supporting the cryptocurrency economy. This includes “Crypto Innovators”, companies with 75% or more of their revenue generated directly in crypto assets. As well as large-cap companies which have at least one significant line of their business involved in the crypto economy. 

(BITS) Global X Blockchain & Bitcoin Strategy ETF

Is an actively managed ETF that seeks to capture the long-term growth potential of blockchain companies and bitcoin futures. BITS isn't directly investing in bitcoin, but rather in other ETFs invested in blockchain companies.

(DEFI) Hashdex Bitcoin Futures ETF

Tracks an index that provides the average closing prices for the CME bitcoin futures contracts with the shortest amount of time available for trading, and therefore are often the most actively traded on the Chicago Mercantile Exchange (CME).

(SATO) Invesco Alerian Galaxy Crypto Economy ETF

Tracks an index made up of companies that are involved in cryptocurrency in a broad range of ways: crypto mining, cryptocurrency buying, crypto-enabling technologies, crypto exchange-traded products and private investment trusts.

(WGMI) Valkyrie Bitcoin Miners ETF

Is an actively managed crypto ETF that invests in companies that derive at least 50% of their revenue from bitcoin mining operations or services related to bitcoin mining. WGMI doesn’t hold bitcoin or provide indirect exposure through bitcoin futures.

ETF descriptions adapted from etf.com.

1-Year Performance data source: MSN (01/13/2024)

Past performance of any investment is never a guarantee of future results.

While the strong returns of certain ETFs in 2023 were impressive, there’s no guarantee they will continue to deliver similar results in 2024. As much of the spotlight remains on BTC ETFs, which hold a single asset—bitcoin—it’s worth exploring other ETFs that provide exposure to a diversified basket of stocks within the crypto industry.  These alternative options provide a regulated way to invest in the cryptocurrency sector. For investors who are not yet ready to buy crypto directly or are looking to diversify their portfolios, crypto-related ETFs could present an appealing alternative.