Top Crypto ETF’s to invest in the UK
In the fall of 2021, the cryptocurrency industry hit a high market value of $3 trillion. Early crypto ETF UK investors benefited greatly from rapid growth. As a result, there is much excitement about discovering and investing in the next cryptocurrency startup.
If investors want indirect exposure to digital currency , crypto ETF's are an excellent investment. Buying equity in firms with bitcoin exposure is a safer, perhaps less rewarding option.
Here is a list of seven crypto ETF’s UK to consider for 2022:
1. Amplify Transformational Data Sharing ETF
The Amplify Transformational Data Sharing ETF is one of the largest funds focusing on the cryptocurrency and digital asset market, with $955 million in assets under management as of spring 2022. The fund's top assets include cryptocurrency trading platform Coinbase Global and semiconductor manufacturer Nvidia, which produces GPUs and the hardware required for crypto mining. Although it does not directly invest in cryptocurrencies, it is a fantastic place to gain exposure to companies that hold and offer crypto currency services, as well as the “picks and shovels” of the industry.
2. Bitwise 10 Crypto Index Fund
The Bitwise 10 Crypto Index Fund is a monthly rebalanced fund that invests in the top ten cryptocurrencies (as determined by market cap). Since Bitcoin and Ethereum are the largest cryptocurrencies, they account for 61% and 29% of the underlying portfolio, respectively. As it trades over the counter, this fund can trade at a significant discount or premium to the underlying crypto values it holds, depending on share demand.
3. Siren Nasdaq NexGen Economy ETF
Another fund focusing on firms developing and capitalizing on blockchain technology is the Siren Nasdaq NexGen Economy ETF. Its emphasis has widened to include more general technology companies with a crypto or blockchain segments; It also includes shares of traditional lenders and digital payment networks that have begun to dabble in cryptocurrency.
4. First Trust Indxx Innovative Transaction & Process ETF
Another large crypto exchange traded fund is the First Trust Indxx Innovative Transaction & Process ETF. The portfolio has 103 stocks, making it the most diverse cryptocurrency ETF. First Trust is also a significant and well-established organisation that has built a wide range of investment products, which may satisfy those investors concerned about track record and fund manager reputation. It offers broad exposure to the crypto area and several multinational IT businesses.
5. Bitwise Crypto Industry Innovators ETF
The Bitwise Crypto Industry Innovators ETF debuted in May 2021, making it a latecomer to the crypto fund scene. This fund's underlying equities include several Bitcoin miners and owners. It only has 30 equities, concentrating on inventors and crypto pioneers.
6. Global X Blockchain ETF
The Global X Blockchain ETF argues that blockchain technology serves purposes other than cryptocurrency. It makes appropriate investments in 25 tech and Bitcoin mining firms leading the charge in cryptocurrency and underlying blockchain technology.
7. Global X Blockchain & Bitcoin Strategy ETF
The Global X Blockchain & Bitcoin Strategy ETF, which began in November 2021, is closely related to the Global X Blockchain fund, which accounts for about half of the underlying holdings. The new ETF investment, however, differs in that the other half of the portfolio invests in Bitcoin futures. Bitcoin futures are a method of simulating the daily fluctuations in the value of an asset, in this instance, Bitcoin.
Cryptocurrencies are still a relatively new asset class, and ETFs dedicated to them are even more so. Investors should expect much volatility in cryptos and the firms focused on their growth, as with any emerging asset class.
If Investors feel that cryptocurrency usage will grow in popularity over time, they should acquire some crypto directly as part of a diversified portfolio. However, there should be an investment thesis for each cryptocurrency invested.
The views of the article is that of the author and is not to be interpreted as financial advice, rather as opinion.
Author: Emmanuel Baiden
7 years experience within the financial services sector most notably in Sales, Trading, research and writing articles within the crypto space. I have a bachelor's degree in International Business and a Master's in Investment and Risk Finance . I am also an associate member of the Chartered Institute for Securities and Investment.