When choosing a cryptocurrency ETF, it is essential to consider several factors, including chart analysis and the CAN SLIM method developed by William J. O’Neill to identify the best-performing stocks.
High market capitalization and high average daily volume indicate a strong, liquid ETF. Experts recommend focusing on leading cryptocurrency ETFs such as BTC and ETH, which show steady growth and adoption.
Many factors influence the price of a cryptocurrency ETF, including changes in supply and the emergence of new use cases. Investors must get the market direction right, as even the best stocks can suffer in a declining market.
Although the cryptocurrency market is trending optimistically, experts warn of concerns about recession risks and high inflation. Considering these factors, here are some of the best-performing cryptocurrency ETFs this year.
ProShares Bitcoin Strategy ETF (BITO)
The ProShares Bitcoin Strategy ETF (BITO) is the first BTC-based ETF in the U.S. and one of the most liquid. Despite an expense ratio of 0.95%, its average trading volume over the past three months has been over 18 million. BITO has $2.04 billion in assets under management and an annualized return of 51.66%.
iShares Bitcoin Trust (IBIT)
Managed by BlackRock, the iShares Bitcoin Trust ETF (IBIT) has quickly become one of the best cryptocurrency ETFs in 2024. With $16.5 billion in assets, the fund has grown rapidly and gained significant traction. Within weeks of launch, IBIT saw $3.3 billion in inflows, driven by rising BTC prices and investor enthusiasm. BlackRock temporarily reduced the fee from 0.25% to 0.12%, making IBIT attractive to investors looking for cost efficiency and growth potential.
Grayscale Bitcoin Investment Trust (GBTC)
In 2013, Grayscale Bitcoin Trust (GBTC) offered over-the-counter BTC trading opportunities. In January 2024, it transformed into a Bitcoin ETF after receiving SEC approval, strengthening its position in the cryptocurrency market. The ETF has become one of the best-performing assets in terms of returns since the beginning of the year, posting a return of 67.59% and a year-to-date total return of 317.61%, according to Yahoo Finance.
GBTC stands out for its strong performance and liquidity, with an average daily trading volume of 16 million shares and assets under management (AUM) of $18.82 billion. Despite its high fee structure (1.5% annualized), its performance makes GBTC one of the best cryptocurrency ETFs.
Fidelity Wise Origin Bitcoin Fund (FBTC)
Fidelity Investments launched its bitcoin fund, FBTC, making it freely tradable on its platform. Since its launch, FBTC has raised over 1 billion dollars. Fidelity’s decision to reduce its expense ratio to 0.00% through August 2024 has attracted investors, and assets under management are now valued at $9.71 billion. This combination of zero expense ratio and significant assets makes FBTC one of the best cryptocurrency ETFs.
Bitwise Bitcoin Strategy Optimum Roll ETF (BITC)
The Bitwise Bitcoin Strategy Optimum Roll ETF, despite lower AUM and average daily volume, stands out among alternative ETFs in 2024. With a return of 72.71% YTD, BITC has cemented its position among the best-performing cryptocurrency ETFs. Its strategy seeks capital appreciation through bitcoin futures, optimizing potential roll gains. Although AUM is $4.5 million, average daily volume is 13,144 shares, and expense ratio is 0.85%, BITC has proven its worth using performance metrics.
