Cryptocurrency trading isn’t for everyone. In fact, there are a good deal of traders that shy away from it. That’s because, for some, the volatility is unnerving. Still, for those that want exposure to cryptocurrencies without directly investing in them, there are ETFs. Even better, if you look at the 10 best performing ETFs of the year so far, crypto-related ones have made the top of the list.
All of this is thanks to a strong rebound in Bitcoin (BTC-USD), which is up about 58% year to date. After plummeting from about $30,000 to its current price of $26,040, Bitcoin is consolidating at the moment. From here, with patience and further retail and institutional support, I’d like to see it again test its highs from technically oversold conditions. Again, if direct exposure to Bitcoin isn’t for you, consider the best crypto ETFs 2023, as of August. These include:
Best Crypto ETFs 2023: Valkyrie Bitcoin Miners ETF (WGMI)
When the price of Bitcoin pushes higher, mining stocks typically follow. That’s because miners derive their revenue from the value of the cryptocurrency. So, as Bitcoin rallied 58%, not only did mining stocks pop, but so did related mining-related ETFs, including the Valkyrie Bitcoin Miners ETF (NASDAQ:WGMI). Year to date, the ETF is up 154% after being up as much as 338% in July.
From its current price of $11.21, I’d like to see it retest its July high of about $19.29, with patience. At the moment, it’s oversold at support and over-extended on RSI, MACD and William’s %R. With an expense ratio of 0.75%, the ETF offers exposure to public Bitcoin mining companies. Some of its top holdings include Advanced Micro Devices (NASDAQ:AMD), Applied Digital (NASDAQ:APLD), Bit Digital (NASDAQ:BTBT), CleanSpark (NASDAQ:CLSK) and Marathon Digital (NASDAQ:MARA) to name a few of the top ones.
VanEck Vectors Digital Transformation ETF (DAPP)
Another hot related ETF is the VanEck Vectors Digital Transformation ETF (NASDAQ:DAPP). Year to date, the ETF is up 134% after being up as much as 268% in July. From its current price of $6.21, I’d like to see it pivot higher with a potential retest of its $9.76 high.
With an expense ratio of 0.50%, the ETF offers exposure to digital asset exchanges, miners and other infrastructure companies. It also offers access to companies that have a high likelihood of receiving 50% of their revenue from digital assets. Some of its top holdings include Coinbase Global (NASDAQ:COIN), MicroStrategy (NASDAQ:MSTR), Block Inc. (NYSE:SQ), Marathon Digital, Riot Platforms (NASDAQ:RIOT), Hive Blockchain (NASDAQ:HIVE) and Bitfarms (NASDAQ:BITF) to name a few of the top ones.
Bitwise Crypto Industry Innovators ETF (BITQ)
We can always look at the Bitwise Crypto Industry Innovators ETF (NYSEARCA:BITQ). Year to date, the ETF is up 116%. In July, it was up as much as 240%. After a recent pullback to $7.21, I’d like to see the ETF pivot higher from technically oversold conditions. At the moment, it’s a bit over-extended on RSI, MACD, and William’s %R.
With an expense ratio of 0.85%, the ETF offers diversified exposure to the crypto economy without investing in digital assets directly. Some of its top holdings also include Coinbase Global, MicroStrategy, Riot Platforms, Hut 8 Mining (NASDAQ:HUT), Marathon Digital and Bitfarms to name a few of the top ones.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
