Best Crypto ETFs:ETNs:ETPs, Rated and Reviewed

 

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Crypto exchange-traded funds/notes/products are perfect for investors looking for a familiar entry point into bitcoins and popular altcoins.

This guide will introduce you to the latest crypto ETFs that allow you to invest in bitcoin/altcoins directly without a bitcoin wallet or crypto exchanges.

List of Crypto ETFs/ETNs/ETPs

ETF NameDescriptionActive SinceFund Size (in m $)TERFund DomicileBased OnReturns (2021)Rating
21Shares Ethereum ETPMarch 20193491.49%SwitzerlandEthereum465.39%4.7
21Shares Crypto Basket Index ETPNovember 20181522.50%SwitzerlandBitcoin, Ethereum, Polkadot, Cosmos, Cardano242.05%4.4
WisdomTree BitcoinNovember 20193140.95%JerseyBitcoin121.45%4.2
BTCetc – ETC Group Physical BitcoinJune 202011132.00%GermanyBitcoin125.96%4.2
VanEck Vectors Ethereum ETNMarch 2021901.00%LiechtensteinEthereum83.95% (6 months)4.2
ETHetc – ETC Group Physical EthereumFebruary 20212271.49%GermanyEthereum79.68% (6 months)4.1
21Shares Bitcoin ETPFebruary 20192831.49%SwitzerlandBitcoin124.82%4.1
Coinshares Physical EthereumFebruary 20211931.25%JerseyEthereum86.01% (6 months)4.0
21Shares Tezos ETPNovember 2019442.50%SwitzerlandTezos258.89%3.8
21Shares Bitcoin Cash ETPJuly 201912.762.50%GermanyBitcoin Cash82.90%3.5

21Shares Ethereum ETP

  • Active Since: March 2019
  • Fund Size: $349 million
  • Total Expense Ratio: 1.49%
  • 2021 Returns: 465.39%

21Shares is one of the most prolific crypto ETF providers in recent years. The Swiss firm’s Ethereum instrument is one of the older crypto ETFs on the market. Out of the many bitcoin and altcoin ETFs operated by 21Shares, the Ethereum ETP has shown maximum cumulative returns of 868.69%. (BMJ Score: 4.7)


21Shares Crypto Basket Index ETP

  • Active Since: November 2018
  • Fund Size: $152 million
  • Total Expense Ratio: 2.50%
  • 2021 Returns: 242.05%

Instead of tracking single cryptos like bitcoin,  this ETP from 21Shares tracks the top 5 coins ranked according to 2050 market cap (based on current prices and projected 2050 supply). Three cryptos dominate this ETP – Bitcoin (45.25%), Ethereum (20.52), and Polkadot (24.36%). It does carry a high fee compared to other crypto ETFs. However, since its inception, the Crypto Basket Index ETP has clocked cumulative returns of 568%. (BMJ Score: 4.4)


WisdomTree Bitcoin

  • Active Since: November 2019
  • Fund Size: $314 million
  • Total Expense Ratio: 0.95%
  • 2021 Returns: 121.45%

As the name suggests, this is an ETP physically backed by bitcoin professionally secured in “cold storage.” The “NAV” or daily value of the ETP is calculated by multiplying the per-share entitlement of bitcoin with the established index – CME CF Bitcoin Reference Rate. The WisdomTree Bitcoin ETP combines low fees with competitive returns in the crypto ETF scene – 399.65% cumulatively since inception. (BMJ Score: 4.2)


BTCetc – ETC Group Physical Bitcoin

  • Active Since: June 2020
  • Fund Size: $1.113 billion
  • Total Expense Ratio: 2.00%
  • 2021 Returns: 125.96%

ETC Group is at the forefront of the crypto ETFs market, with a total AUM of $1.113 billion. The BTCetc ETP leads the bitcoin-backed ETF space in terms of annual returns, ahead of similar instruments in 2021. Cumulative returns are at 397%, but the fees are on the higher side of the spectrum. (BMJ Score: 4.2)


VanEck Vectors Ethereum ETN

  • Active Since: March 2021
  • Fund Size: $90 million
  • Total Expense Ratio: 1.00%
  • 2021 Returns: 83.95%

Although VanEck Corporation is a reputed ETF provider based in NY, their crypto ETFs   are domiciled in Liechtenstein. The Vectors Ethereum ETN is matched to the performance of the well-established MVETHV Index. The Vectors ETH instrument is marked by low fees and performance that is so far in line with the best Ethereum ETFs available on the market – 90% returns in 3 months and 60% over 6 months. (BMJ Score: 4.2)


21Shares Bitcoin ETP

  • Active Since: February 2019
  • Fund Size: $283 million
  • Total Expense Ratio: 1.49%
  • 2021 Returns: 124.82%

The 21Shares version of a bitcoin ETP has followed a nearly identical growth trajectory as the WisdomTree ETP. This is not surprising as both ETFs are backed by physical bitcoin holdings. The 21Shares instrument does come with marginally higher ETR, with a few percentage points of improvement on the returns. (BMJ Score: 4.1)


Coinshares Physical Ethereum

  • Active Since: February 2021
  • Fund Size: $193 million
  • Total Expense Ratio: 1.25%
  • 2021 Returns: 86.01%

One of the younger crypto ETFs on our list, this   Ethereum backed instrument from Coinshares gets the nod based on the long-term prospects of ETH. Also, Coinshares is a pioneer of crypto ETFs, credited with launching the first bitcoin-based instrument on a regulated exchange in 2014. The Physical Ethereum ETN has registered modest returns of 73% in 3 months and 47% in 6 months. In comparison, the top-ranked ETH instrument from 21Shares clocked 90% and 62% respectively over the same time frame. (BMJ Score: 4.0)


21Shares Tezos ETP

  • Active Since: November 2019
  • Fund Size: $44 million
  • Total Expense Ratio: 2.50%
  • 2021 Returns: 258.89%

Tezos is one of the smaller altcoins in the crypto market with a market cap of just $5.9 billion. But it has shown growth potential in the recent past, tripling in value between 2019 -2020. The 21Shares ETP on this altcoin is an interesting option with current annual returns since inception pegged at 275%. (BMJ Score: 3.8)


21Shares Bitcoin Cash ETP

  • Active Since: July 2019
  • Fund Size: $12.76 million
  • Total Expense Ratio: 2.50%
  • 2021 Returns: 82.90%

Created by a fork in the original bitcoin in 2017, Bitcoin Cash (BCC) is an altcoin with a market cap of around $11 billion in 2021. The 21Shares ETP has displayed a modest cumulative growth of 133.27%. The BCC ETF might be an interesting option for investors looking at crypto ETFs that track altcoins besides the big two (Bitcoin and Ethereum). (BMJ Score: 3.5)


ETHetc – ETC Group Physical Ethereum

  • Active Since: February 2021
  • Fund Size: $227 million
  • Total Expense Ratio: 1.49%
  • 2021 Returns: 79.68%

The Ethereum ETN from ETC Group is yet another new instrument launched in 2021. It finds a place on this list due to the relative   reliability of ETH over other altcoins, as well as the ETC Group credentials   on the crypto ETF market. Since its inception, the returns on the instrument are well-aligned with market trends, growing 90.40% in over months and 60% across 6 months. (BMJ Score: 4.1)


The majority of crypto ETF/ETN/ETPs are traded on established European exchanges like the XETRA in Germany, SIX Swiss Exchange in Switzerland, Euronext Paris in France, and Euronext Amsterdam in the Netherlands. They are all funds 100% backed by bitcoin, ether, or other altcoins held in professional “cold storage” and mirroring the performance of major crypto indexes.

This list does NOT include ETFs that provide indirect exposure to bitcoin/altcoins through equities connected to the cryptocurrencies by way of technology or business models.

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We selected the top-ranked crypto ETFs based on their age, YoY performance, and comparison of their Total Expense Ratios (TER). The majority of the top crypto ETFs are backed by either bitcoin or Ethereum, which is not surprising since they are the dominant cryptos with an established base and high visibility.

However, newer crypto ETFs backed by altcoins like Cardano, Tezos, and Polkadot are already arriving on the scene. Given the increased risk attached to smaller altcoins given their relative obscurity, and the lack of any ETF performance figures for comparison, we have opted not to consider them in our review process at present.

As the scene matures and altcoin-based ETFs accumulate reliable growth and performance data we will update the ratings to include them. All the same, if you are new to the crypto ETFs market, it might be better to stick with Bitcoin and Ethereum-based instruments for the foreseeable future.

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To learn more about the basics of investing in bitcoin ETFs, check out our in-depth guide on the process here. And if you find the information provided here helpful, please consider subscribing to the Bitcoin Market Journal for daily blockchain market updates.

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