The Top 7 Cryptocurrency Funds to Get Into in 2022

Cryptocurrency investing comes with a steep learning curve, and investors used to purchasing stocks on the stock market may find that trading crypto is harder than they expected. 

This is where cryptocurrency funds come to the rescue. Exchange-Traded Funds (ETFs) represent a way of investing in crypto without directly purchasing coins. Simply said, a cryptocurrency ETF is a fund that contains cryptocurrency. 

Crypto ETFs provide several benefits to investors. Keep reading to find out what those benefits are and which funds are worth your attention.

Why Should You Invest in a Cryptocurrency Fund?

There are several benefits to investing in crypto ETF funds. Crypto ETFs can track a single currency or a basket of coins and tokens. Generally speaking, they offer low-cost ownership, diversification, and outsource portfolio management to the fund. 

There are two types of ETFs. The first one is backed by fiat. The firm that manages the fund purchases the coin and the ownership is represented in shares. As such, when an investor purchases a share, they automatically become the owner of the crypto as well. 

The second type of cryptocurrency ETF fund tracks crypto derivatives, like futures contracts and cryptocurrency exchange-traded products (ETPs). The ETF share price mirrors the price movements of derivatives instead of the prices of actual coins or tokens. 

Keep in mind that ETFs are trading in multiple countries, but at the moment, the US government is still figuring out the legalities of it all. 

How to Start Investing in a Crypto Investment Fund

One of the easiest approaches to investing in this type of fund is to purchase the stocks of a company that invested in the crypto market. For example, you can invest in S&P 500 or other index funds. These funds will also contain stocks of the companies that invested in crypto. 

Additionally, you can explore the internet and find several crypto funds where you can invest directly. Keep in mind that the SEC continuously delays the approval process in the US, making it a great first option to get started. 

The Best Cryptocurrency Funds for 2022

Bitcoin Strategy ProFund 

Info About the Platform 

Bitcoin Strategy ProFund launched in July 2021 and offers investment in Bitcoin futures. This fund can also invest in Canadian ETFs that invest in Bitcoin directly. It offers a low $1,000 first purchase and a 1.15% expense ratio. 

Investing in this fund is an ideal way of being involved in cryptocurrencies without actually having to invest in them directly. 

Main Features

The main features of this cryptocurrency mutual fund are: 

  • A low first investment of $1,000
  • Group accounts 
  • Geared (leveraged and inverse) funds
  • Telephone and internet transactions 

Products include, but aren’t limited to: 

  • Banks
  • Basic materials
  • Biotechnology
  • Consumer goods
  • Financials 
  • Industrials
  • Small-cap 
  • Utilities

If you’re interested in investing in this fund, know that you must be a US citizen or permanent resident, you must trade in the US, and fund the account via check or electronic transfer from your bank. Still, this is one of the easiest cryptocurrency mutual funds to invest in. To create your account, visit this page

Fidelity Digital Assets 

Info About the Platform 

Fidelity Digital Assets fund is paired with some of the best technologists in cryptography and experienced professionals. Fidelity is also one of the world’s largest and most diversified financial service providers. It has over $7 trillion in client assets and processes over 1.3 million trades daily. 

Meanwhile, the Fidelity cryptocurrency fund became the first step towards offering a full-service enterprise-grade platform for storing, trading, and supporting digital assets. 

Main Features

Fidelity Digital Assets has a comprehensive website, where you’ll find everything you want to know about the platform. Its features also include: 

  • Offline deep-cold storage
  • Trade execution venue integrated with the custody platform
  • Dedicated client support 
  • Institutional-grade security 
  • Buy/sell without moving funds 

If you’re interested in cryptocurrency funds by Fidelity, you can open an account by contacting the team here. This platform works with institutional investors only.

Crypto20

Info About the Platform 

Crypto20 (powered by Invictus) claims to be the first tokenized crypto index fund. The platform uses backtesting and data science to generate a fund that rebalances each week and caps assets at 10%.

At the moment, this cryptocurrency index fund has over 50,000 investors. It claims to have no broker and exit fees and no minimum investment cap. In addition, it provides complete blockchain transparency.

Main Features

The main features of this platform include: 

  • Constant, 24/7 trading
  • Low fees
  • Annual fees of only 0.5% 
  • Index funds are autonomous 
  • Powered by data science
  • Index tracking
  • Real-time tracking 
  • Purchase on several platforms 

To start investing in this index fund for cryptocurrency, make an account on this page. Don’t worry that you were redirected to the Invictus platform because Invictus capital is behind Crypto20. Unfortunately, it doesn’t currently allow US citizens to register on the platform. 

Bitwise 10 Crypto Index Fund

Info About the Platform 

Bitwise launched in 2017, and it tracks the performance of the Bitwise 10 Large Cap Crypto Index. It represents the top 10 largest currencies on the market that are the best investments and account for 70% of the total crypto market. 

This is one of the cryptocurrency funds that developed quickly. It had a mere $120 million in assets at its onset, and today, it has ten times that amount. It’s an open-ended, publicly-traded statutory trust and not an exchange-traded fund or closed-end fund. 

Bitwise is also a pioneer in the crypto asset management space. Its asset funds are liquid, low-cost, and secure. 

Main Features

The main features of Bitwise are: 

  • Bitwise 10 ex Bitcoin 
  • Bitwise 10 non-OTC Trust
  • Bitwise DeFi Crypto Index Fund
  • Bitwise Bitcoin Fund
  • Bitwise 10 Index Offshore Fund

If you wish to invest in one of the best crypto funds, visit the following page to register. There are two types of available registration, so select the one that best describes you.

Blockchain ETF

Info About the Platform 

Global X Blockchain ETF helps you invest in companies that benefit from blockchain technology. It tracks the performance of the Solactive Blockchain Index, which is a collection of stocks of the said companies. 

This blockchain index fund sorts the companies into three groups: 

  1. Pure-play: stocks that derive from at least 50% of revenue from blockchain 
  2. Pre-revenue: companies that deal with blockchain but have no revenue yet
  3. Diversified: stocks that derive less than 50% of revenue from blockchain

Global X Blockchain ETF has been around for over a decade. The company is committed to empowering investors and finding new opportunities. It has offices in 48 countries around the world.

Main Features

This blockchain fund is packed with features:

  • Offers a lineup of exchange-traded funds
  • Has open architecture solutions for financial advisors 
  • Is a member of Mirae Asset Financial Group

Some of the ETFs on the list are: 

  • Nasdaq 100 Covered Call ETF
  • US Preferred ETF
  • Cloud Computing ETF
  • Copper Miners ETF
  • S&P 500 Covered ETF
  • Guru Index ETF
  • DAX Germany ETF
  • Hydrogen ETF
  • Solar ETF

To start exploring these blockchain funds, create an account here

VanEck Digital Transformation 

Info About the Platform 

This fund launched recently and already acquired about $50 million in assets. Even though this number may be low compared to other funds, VanEck is one of the well-known platforms to invest with. 

It tracks the performance of the MVIS Global Digital Assets Equity Index, which invests in companies related to digital assets. The portfolio is focused on 25 assets, out of which the top 10 represent 64% of the total number. 

The VanEck crypto fund is available globally for individual and institutional investors, financial advisors, and RIA asset managers. 

Main Features

When you visit the official website, you’ll be flooded with the latest news in the industry. Additionally, you can read more about investment strategies that include: 

  • ETF
  • Gold equity 
  • Emerging markets fixed income
  • Natural resources and commodities 
  • US equity

Select what type of investor you are and contact VanEck via its homepage to receive more information about creating an account.

Block

Info About the Platform 

Being the best cryptocurrency index fund, BLOCK is an actively managed ETF that invests at least 80% of its net assets in companies that are involved in blockchain technology. It’s similar to many other US cryptocurrency ETFs since it’s invested in equities. 

This ETF has 47 holdings, and the top 10 accounts hold approximately 45% of all assets. Additionally, it provides exposure to a couple more interesting holdings besides the top 10. For example, it includes the Purpose Bitcoin ETF and 3iQ Coin Shares Bitcoin ETF. 

Main Features

This is one of the cryptocurrency funds with the following additional companies involved: 

  • Amplify Investments as sponsors
  • Torso Investments as sub-advisers 
  • Emerita Capital delivers insights and frameworks 

BLOCK’s information is also very transparent. On its official page, you can find:  

  • Distributions 
  • Summaries
  • Semi-annual and annual reports 
  • Holding snapshots

To get into Amplify’s BLOCK ETF, you’ll need to contact the platform on the homepage

Summary 

If you wish to get involved in cryptocurrency and blockchain but don’t want to invest directly, ETFs are another option for getting exposure to these assets. There are many different funds to choose from, and finding the right cryptocurrency fund might take some time. 

It’s worth it, though. You’ll invest in a way that you’re used to, gain access to portfolios that appear more traditional, and reap the benefits of different assets. For example, you can select an index fund that tracks the top 10 currencies or invest in companies that are in the blockchain industry. 

Registration is easy, and most of these ETFs are available globally. Keep in mind, though, that the US legislation isn’t quite there yet when it comes to Bitcoin ETFs. 

FAQ

Vanguard is an investment management company that offers access to mutual funds, 401k plans, retirement plans, and similar. Vanguard is owned by the people who invest in the funds. As a result, it’s accessible to institutional and individual investors, financial professionals, and retirement plan participants. 

Vanguard believes that the cryptocurrency market is highly speculative. As such, it doesn’t offer cryptocurrency investing but instead monitors the development of the market.

By definition, a cryptocurrency exchange-traded fund (ETF) is a fund that contains cryptocurrencies or stocks of companies involved in blockchain technology. The cryptocurrency ETF tracks the price of one or more digital coins or tokens. 

Crypto ETFs are also traded daily but provide several benefits to investors. For example, it costs less to invest in crypto via an ETF, and there’s barely any learning curve to handle. In addition, crypto ETFs are usually available globally.

Crypto funds are similar to traditional portfolio investments, like hedge funds. Still, they work a little bit differently. Cryptocurrency ETFs contain several currencies, and investors can purchase them to share the profits once the value of the funds grows. 

Many of these funds are managed, meaning that fund managers can use several tactics to grow their investments. For example, they can use long/short equity or market neutral strategies. Cryptocurrency funds can also be managed with arbitrage and a few other strategies to make more money.