The advent of crypto-assets has brought a new asset class to the investing world. This article analyzes and rates five different options, from top ETFs to ETNs, giving you an idea which one may be best for your investment strategy.
In the cryptocurrency market, there are many ways to invest. For those who aren’t interested in keeping their coins on exchanges and want a more passive investment option, an ETF or exchange-traded note (ETN) is usually the go-to alternative. The difference between these two options can be confusing for beginners and even seasoned investors looking to make a change from standard investment vehicles like stocks and bonds might find it difficult to decide which one they should choose. Let’s take a look at what sets them apart as well as some potential points of interest that you might consider before investing in either choice into your portfolio.
The “best etn 2021” is a list of the best crypto ETFs, ETNs, and ETPs that have been rated and analyzed by experts. The list includes the top 10 options for each type of investment vehicle.
Crypto exchange-traded funds, notes, and products are ideal for investors searching for a familiar way to get started with bitcoin and other popular cryptocurrencies.
This tutorial will walk you through the newest crypto ETFs, which enable you to invest in bitcoin and altcoins without the need for a bitcoin wallet or crypto exchange.
Crypto ETFs, ETNs, and ETPs
| Name of the ETF | Description | Since then, | Fund Size (in millions of dollars) | TER | Domicile for the Fund | Based On | Refunds (2021) | Rating |
|---|---|---|---|---|---|---|---|---|
| Ethereum ETP (21Shares) | In recent years, 21Shares has been one of the most prolific crypto ETF providers. The Ethereum ETF offered by the Swiss business is one of the more established crypto ETFs on the market.The Ethereum ETP, one of 21Shares’ several bitcoin and altcoin ETFs, has produced the highest cumulative gains of 868.69 percent.
The ETF generated annual returns of 415 percent in 2021. The instrument has a TER of 1.49 percent, which is not very high. |
In March of this year, | 349 | 1.49% | Switzerland | Ethereum | 465.39% | 4.7 |
| ETP for the 21Shares Crypto Basket Index | Instead of following individual cryptos such as bitcoin, this ETP from 21Shares follows the top 5 currencies by market size as of 2050. (based on current prices and projected 2050 supply)Bitcoin (45.25 percent), Ethereum (20.52 percent), and Polkadot (20.52 percent) are the top three cryptos in this ETP (24.36 percent ). When compared to other crypto ETFs, it has a hefty charge.
The Crypto Basket Index ETP, on the other hand, has generated total gains of 568 percent since its debut, including 207 percent in 2021 alone. |
The month of November 2018 | 152 | 2.50% | Switzerland | Bitcoin, Ethereum, Polkadot, Cosmos, and Cardano are some of the most popular cryptocurrencies. | 242.05% | 4.4 |
| Bitcoin WisdomTree | This is an ETP that is physically backed by bitcoin that is professionally stored in “cold storage,” as the name implies.The ETP’s “NAV,” or daily value, is determined by multiplying the per-share bitcoin entitlement by the specified benchmark, the CME CF Bitcoin Reference Rate.
The WisdomTree Bitcoin ETP combines minimal fees with competitive returns in the crypto ETF space, with a 100 percent return in 2021 and a total return of 399.65 percent from launch. |
In November of this year, | 314 | 0.95% | Jersey | Bitcoin | 121.45% | 4.2 |
| Bitcoin ETP (21Shares) | The WisdomTree ETP and the 21Shares version of a bitcoin ETP have followed roughly similar development paths. Both ETFs are backed by real bitcoin holdings, so this isn’t unexpected.The ETR for the 21Shares instrument is somewhat greater, and the returns are improved by a few percentage points. | The month of February 2019 | 283 | 1.49% | Switzerland | Bitcoin | 124.82% | 4.1 |
| ETC Group Physical Bitcoin BTCetc | With a total AUM of $1.135 billion, ETC Group is the industry leader in crypto ETFs.In terms of yearly returns, the BTCetc ETP leads the bitcoin-backed ETF category by 4% in 2021, outperforming comparable products (103.99 percent ). The overall return is 397 percent, but the fees are on the upper end of the scale. | In June of 2020, | 1113 | 2.00% | Germany | Bitcoin | 125.96% | 4.2 |
| Tezos ETP (21Shares) | Tezos has a market valuation of $5.9 billion, making it one of the lesser cryptocurrencies in the crypto market.However, it has recently shown growth potential, doubling in value between 2019 and 2020. The year-over-year performance in 2021 was similarly outstanding, with a 243 percent increase.
With current yearly gains of 275 percent, the 21Shares ETP on this cryptocurrency is an intriguing alternative. |
In November of this year, | 44 | 2.50% | Switzerland | Tezos | 258.89% | 3.8 |
| Bitcoin Cash ETP (21Shares) | Bitcoin Cash (BCC) is a cryptocurrency that was created in 2017 as a result of a split in the original bitcoin. It has a market worth of roughly $11 billion in 2021.The 21Shares ETP has had a moderate rise of 78.74 percent in 2021 returns, for a total gain of 133.27 percent. For comparison, in 2021, the YoY returns on actual BCC assets were roughly 82.6 percent.
Investors seeking for crypto ETFs that follow cryptocurrencies other than the top two could be interested in the BCC ETF (Bitcoin and Ethereum). |
The month of July 2019 | 12.76 | 2.50% | Germany | Bitcoin Cash (BCH) is a cryptocurrency that | 82.90% | 3.5 |
| Physical Ethereum Coinshares | This Ethereum-backed product from Coinshares, one of the newer crypto ETFs on our list, gets the thumbs up due to ETH’s long-term potential.Coinshares is also acknowledged as being a pioneer of crypto ETFs, having launched the first bitcoin-based product on a regulated exchange in 2014.
In three months, the Physical Ethereum ETN returned 73 percent, and in six months, it returned 47 percent. The top-ranked ETH instrument from 21Shares, on the other hand, clocked 90 percent and 62 percent, respectively. |
February in the year 2021 | 193 | 1.25% | Jersey | Ethereum | 85.1% (6 months) | 4.0 |
| Ethereum ETN VanEck Vectors | Despite the fact that VanEck Corporation is a well-known ETF provider located in New York, its crypto ETFs are situated in Liechtenstein.The performance of the Vectors Ethereum ETN is matched to that of the well-known MVETHV Index.
The Vectors ETH instrument has minimal costs and has so far outperformed the finest Ethereum ETFs on the market, with 90 percent returns in three months and 60 percent returns in six months. |
March of the year 2021 | 90 | 1.00% | Liechtenstein | Ethereum | 83.95 percentage point (6 months) | 4.2 |
| ETC Group Physical Ethereum ETHetc | The ETC Group’s Ethereum ETN is yet another new instrument set to debut in 2021.It makes this list because of the relative stability of ETH compared to other cryptocurrencies, as well as the ETC Group’s reputation in the crypto ETF market.
Since its introduction, the instrument’s returns have tracked market trends, increasing by 90.40 percent over months and 60 percent over six months. |
February in the year 2021 | 227 | 1.49% | Germany | Ethereum | 70% (6 months) | 4.1 |
The bulk of cryptocurrency ETFs, ETNs, and ETPs are traded on well-known European exchanges such as XETRA in Germany, SIX Swiss Exchange in Switzerland, Euronext Paris in France, and Euronext Amsterdam in the Netherlands. They’re all bitcoin, ether, or other altcoin-backed funds that track the performance of key crypto indices and are stored in professional “cold storage.”
This list excludes ETFs that give indirect exposure to bitcoin and altcoins through stocks linked to the cryptocurrencies via technology or business concepts.
Based on their age, YoY performance, and a comparison of their Total Expense Ratios, we chose the top-ranked crypto ETFs (TER). The bulk of the top crypto ETFs are backed by bitcoin or Ethereum, which is unsurprising given that these are the most popular cryptos with a large following and great visibility.
Newer crypto ETFs backed by altcoins like Cardano, Tezos, and Polkadot, on the other hand, are already on the market. We have decided not to include smaller cryptocurrencies in our screening process at this time because to the heightened risk associated with their relative obscurity and the absence of comparable ETF performance numbers for comparison.
We’ll update the ratings to incorporate altcoin-based ETFs as the ecosystem evolves and more accurate growth and performance data becomes available. Still, if you’re new to the crypto ETF market, you may want to stay with Bitcoin and Ethereum-based assets for the time being.
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Check out our in-depth guide to investing in bitcoin ETFs here to learn more about the essentials. Please consider subscribing to the Bitcoin Market Journal for daily blockchain market updates if you find the information given here useful.
Proshares Crypto ETF is one of the best crypto ETFs/ETNs/ETPs on the market. It has a low expense ratio, and it also offers an average dividend yield of 4.75%. Reference: proshares crypto etf.
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