After a volatile year, things are falling in places for cryptocurrency ETFs. The cryptocurrency, infamous for its high volatility (down 25% past year), may see some support in the coming days as President Biden has signed an executive order that will coordinate efforts among financial regulators to study the risks and opportunities associated with digital assets. Bitcoin, one of the world’s most popular cryptocurrencies, jumped 9% on Wednesday having reacted to the news, according to Coin Metrics.
About 16% of American adults have invested in, traded or used crypto, the administration said,
per a CNBC article. Digital assets, including cryptocurrencies, surpassed $3 trillion in value in November, according to a White House fact sheet, the CNBC article noted. So, this federal oversight was necessary. The new order is the administration’s most-important attempt yet to control a fast-growing industry and protect stakeholders.
Apart from this, the Russia-Ukraine war is also acting as tailwind for the cryptocurrency space. The ongoing Russian-Ukraine war has sparked huge discussions amongst market enthusiasts over whether cryptocurrencies are a safe-haven asset. The discussion was triggered by the fact that assets like bitcoin act as digital gold. The rally of more than 22% in major crypto coins like bitcoin and ethereum in the late February and early March period aided the narrative.
The rally has strengthened because Ukraine allowed the acceptance of cryptocurrency. Ukraine, which grabbed the fourth position in the blockchain data platform Chainalysis' 2021 Global Crypto Adoption Index, has been collecting donations for support during the war in the form of bitcoin, ethereum and tether and the country raised
$100 million in crypto donations. Now, with Biden’s executive order, trading in crypto should be smoother and safer for retail investors.
Against this backdrop, below we highlight a few cryptocurrency ETFs that are gaining and may come across as lucrative investments in the coming days.
Cryptocurrency ETFs That Are Gaining ProShares Bitcoin Strategy ETF ( BITO Quick Quote BITO - Free Report) — up 9% on Mar 9
ProShares Bitcoin Strategy ETF is the first U.S. bitcoin-linked ETF offering investors an opportunity to gain exposure to bitcoin returns in a convenient, liquid and transparent way. The fund seeks to provide capital appreciation primarily through managed exposure to bitcoin futures contracts. BITO has amassed AUM of $1.11 billion and charges an expense ratio of 0.95%. Also, ProShares Bitcoin Strategy ETF has an average daily trading volume of about 7.7 million shares.
VanEck Bitcoin Strategy ETF ( XBTF Quick Quote XBTF - Free Report) — up 9% on Mar 9
The VanEck Bitcoin Strategy ETF seeks capital appreciation by investing in bitcoin futures contracts. The Fund is actively managed and offers exposure to bitcoin-linked investments through an accessible exchange traded vehicle. XBTF has an AUM of $26.8 million with an expense ratio of 0.65%. VanEck Bitcoin Strategy ETF trades in average daily volume of about 34,000 shares.
Amplify Transformational Data Sharing ETF ( BLOK Quick Quote BLOK - Free Report) — up 6.8% on Mar 9
BLOK is an actively managed ETF that seeks to provide total return by investing at least 80% of its net assets in equity securities of companies actively involved in the development and utilization of blockchain technologies. The fund has amassed $998.2 million in assets and charges an expense ratio of 71 basis points. BLOK has an has an average daily trading volume of about 563,000 shares.