crypto etf

10 Best Crypto ETF Alternatives to Consider for Singaporeans

Exchange-traded funds or ETFs are a type of mutual fund that usually carry lower expense ratios than other mutual funds. This characteristic makes them greatly attractive to many Singaporean investors. An ETF’s price generally reflects the value of its underlying securities. ETF shares’ net asset value (NAV) is calculated once at the end of each business day.

Cryptocurrency ETFs have skyrocketed to new heights following several crypto ETFs that have increased their market cap since 2017, the first time bitcoin peaked to its all time high. Is it time for you to invest and get a possibly huge payday from ETFs in crypto exchanges? Here’s everything you need to know.

What Are Cryptocurrency ETFs?

In the world of stocks, ETFs are investment funds that track the movements of a particular index, such as the S&P 500. Cryptocurrency ETFs plans to do the same thing, but with digital currencies. For example, the LEGR ETF focuses on the Indxx Blockchain Index that tracks many blockchain-powered companies of all sizes.

These ETFs function similarly to traditional ETFs but concentrate on cryptocurrencies and businesses that are engaged or/and own cryptocurrencies.

 

Why Are Cryptocurrency ETFs Excellent Investments Today?

One of the reasons is that cryptocurrency ETFs allow institutional investors and retail investors to invest in cryptocurrency without actually owning it. 

Another reason is that investing in cryptocurrency ETFs allows investors to immediately diversify their portfolios, while also allowing investors to profit from the rising value of cryptocurrencies.

Cryptocurrencies are here to stay, making knowledge of them and all possible future funds surrounding them crucial for wise investors.

Find out which are the best cryptocurrency to buy this 2022.

cryptocurrency iphone investment

Top 10 Cryptocurrency ETFs for Singaporean Investors

1. Amplify Transformational Data Sharing (BLOK)

  • Expense Ratio: 0.71%
  • Volume: 368,943
  • Net Assets: $1.07B
  • Shares Outstanding: 28,699,970
  • Dividends: $5.75 (Annual)

As of February 2022, the Amplify Transformational Data Sharing ETF has gained over USD $1.07 billion in assets concentrating on cryptocurrencies. This means that BLOK does not directly invest in cryptocurrencies, allowing it to hedge against any downfall by using the value of companies and other assets it invests in when necessary. 

BLOK began in January 2018 after the first bitcoin boom. As a tenured cryptocurrency ETF, it’s one of the longest-running and tenured ETFs in most marketplaces. 

You can find the following holdings that hold bitcoin and other cryptocurrencies in this fund:

  • Coinbase Global Inc – Ordinary Shares – Class A COIN
  • Galaxy Digital Holdings Ltd GLXY
  • CME Group Inc – Ordinary Shares – Class A CME
  • Silvergate Capital Corp – Ordinary Shares – Class A SI
  • NVIDIA Corp NVDA
  • Microstrategy Inc. – Ordinary Shares – Class A MSTR
  • PayPal Holdings Inc PYPL
  • HIVE Blockchain Technologies Ltd HIVE

Five Year Market Performance Table

Year ETF Dividend Value
2021 S$5.75
2020 S$0.66
2019 S$0.39
2018 S$0.19
2017 n/a


2. Global X Blockchain ETF (BKCH)

  • Expense Ratio: 0.50%
  • Volume: 163,749
  • Net Assets: $107.23M
  • Shares Outstanding: 5,350,784
  • Dividends: $0.93 (Semi-Annual)

If you believe that blockchain technology can go far beyond than just acting as secure ledgers for purchases, Global X Blockchain ETF is surely one of the best crypto ETFs for you.

Currently, the ETF is relatively young as it only began in July 2021. However, the fund has a very low expense ratio. Plus, it invests in 25 technology companies that hold cryptocurrency and bitcoin miner stocks, allowing it to hedge against any price downfall in bitcoin futures.

Here’s a list of Global X Blockchain ETF’s top-performing assets

  • Coinbase Global Inc – Ordinary Shares – Class A COIN
  • Riot Blockchain Inc RIOT
  • Marathon Digital Holdings Inc MARA
  • Voyager Digital Ltd VOYG
  • Hut 8 Mining Corp HUT
  • Galaxy Digital Holdings Ltd GLXY
  • Canaan Inc – ADR CAN
  • HIVE Blockchain Technologies Ltd HIVE

Five Year Market Performance

Year ETF Dividend Value
2021 S$0.93 (Semi annual)
2020 n/a
2019 n/a
2018 n/a
2017 n/a


3. Bitwise Crypto Industry Innovators ETF (BITQ)

  • Expense Ratio: 0.85%
  • Volume: 133,380
  • Net Assets: $116.32M
  • Shares Outstanding: 6,074,246
  • Dividends: $0.66 (None)

A relatively young blockchain ETF, the Bitwise Crypto Industry Innovators ETF is one of the fastest-growing and improving funds despite its inception in 2021.

The fund may have a high 0.85% expense ratio, but it’s offset by the high value of the companies and assets it includes that hedge against possible deflation. As with most top-performing ETFs, you can find Coinbase, MicroStrategy, Silvergate Capital, and Meta Stablecoin assets.

Here’s a list of the top-performing assets in this fund:

  • Coinbase Global Inc – Ordinary Shares – Class A COIN
  • Silvergate Capital Corp – Ordinary Shares – Class A SI
  • Microstrategy Inc. – Ordinary Shares – Class A MSTR
  • Galaxy Digital Holdings Ltd GLXY
  • Voyager Digital Ltd VOYG
  • Canaan Inc – ADR CAN
  • Riot Blockchain Inc RIOT
  • Hut 8 Mining Corp HUT
  • HIVE Blockchain Technologies Ltd HIVE

Five Year Market Performance

Year ETF Dividend Value
2021 S$0.66
2020 n/a
2019 n/a
2018 n/a
2017 n/a


4. Siren Nasdaq NexGen Economy ETF (BLCN)

  • Expense Ratio:0.68%
  • Volume: 40,389
  • Net Assets: $246.53M
  • Shares Outstanding: 5,924,997
  • Dividends: $0.03 (Quarterly)

Blockchain technology is bound to be a huge part of the world’s future economy, and siren Nasdaq NexGen Economy ETF believes the same. Many will find this ETF having similar assets as those of BLOK, but BLCN focuses on both technology companies and the assets they carry, mixing traditional with cryptocurrency investing simultaneously.

BLCN is composed of 64 stocks that have cryptocurrency assets and have began investing in the crypto economy. In addition, the fund has a low but manageable expense ratio of 0.68%.

Here are the assets that build the BLCN blockchain ETF:

  • International Business Machines Corp. IBM
  • Coinbase Global Inc – Ordinary Shares – Class A COIN
  • Signature Bank SBNY
  • JPMorgan Chase & Co. JPM
  • Alibaba Group Holding Ltd – ADR BABA
  • Baidu Inc – ADR BIDU
  • PayPal Holdings Inc PYPL
  • Hewlett Packard Enterprise Co HPE

Five Year Market Performance

Year ETF Dividend Value
2021 S$0.02
2020 S$0.01
2019 S$0.07
2018 S$0.12
2017 n/a


5. Grayscale Bitcoin Trust (GBTC)

  • Expense Ratio: 2.00%
  • Volume: 4,534,031
  • Net Assets: $27.51B
  • Shares Outstanding: 692,370,100
  • Dividends: $0.06 (Other)

One of the oldest yet thriving blockchain ETFs out there, the Grayscale Bitcoin Trust focuses on providing its investors with top returns as beneficiaries with managers acting as trustees. In 2013, it began as a trust fund, which Grayscale will most likely convert to an ETF within the time the US SEC allows crypto-spot ETFs that track bitcoin and other crypto prices directly.

The fund doesn’t hold assets that own bitcoin and owns actual cryptocurrency. Based on their current asset allocation, the fund currently has $24.2 billion in assets, with each share valued at 0.0009 bitcoin.

Five Year Market Performance

Year ETF Dividend Value
2021 S$0.06
2020 n/a
2019 n/a
2018 n/a
2017 n/a


6. Grayscale Ethereum Trust (ETHE)

  • Expense Ratio: 2.50%
  • Volume: 2,933,729
  • Net Assets: $10.16B
  • Shares Outstanding: 310,158,500
  • Dividends: N/A

Similar to its GBTC trust fund, ETHE focuses on doing the same thing for investors but using Ethereum this time. The second-largest, publicly-used cryptocurrency has gained huge value over the years with increasing utility, such as being a store-of-value for NFTs and powering many play-to-earn games in the process. 

Just like GBTC, ETHE started as a trust fund that owns actual Ethereum instead of purchasing shares from tech companies that own ETH. Also, its investors are beneficiaries and trustees. In the future, Grayscale plans to convert the ETHE into an ETF once SEC allows crypto-spot ETFs that allow funds to track ETH prices.

Before investing, make sure to assess whether ETHE and GBTC’s markedly-high expense ratio works well for your investment portfolio.

Five Year Market Performance

Year ETF Dividend Value
2021 n/a
2020 n/a
2019 n/a
2018 n/a
2017 n/a

 

7. Valkyrie Bitcoin Strategy ETF (BTF)

  • Expense Ratio: 0.95%
  • Volume: 951,054
  • Net Assets: $35.71M
  • Shares Outstanding: 2,125,000
  • Dividends: N/A

BTF uses bitcoin futures and bonds to create its value. Specifically, BTF invests in Chicago Mercantile Exchange (CME) bitcoin futures.

The Chicago Mercantile Exchange (CME) is the world’s largest futures and options trading market. The exchange offers a variety of futures contracts, including agricultural commodities, equity indexes, foreign currency and financial instruments. Recently, it has added cryptocurrency futures, such as bitcoin futures, into its selections.

The bitcoin futures market is limited, meaning that a person cannot invest more than they are willing to lose into the market. This makes bitcoin futures an easy way to gain exposure to Bitcoin without buying and storing the cryptocurrency. In addition, bitcoin futures provide an opportunity for traders to hedge their positions in Bitcoin by using a futures contract.

BTF invests in the following assets:

  • US Treasury Bills
  • CME Bitcoin Futures
  • Cash and Other Assets

Five Year Market Performance

Year ETF Dividend Value
2021 n/a
2020 n/a
2019 n/a
2018 n/a
2017 n/a


8. VanEck Bitcoin Strategy ETF (XBTF)

  • Expense Ratio: 0.65%
  • Volume: 19,769
  • Net Assets: $17.00M
  • Shares Outstanding: 400,000
  • Dividends: N/A

A young cryptocurrency fund along with some of its peers, the VanEck Bitcoin Strategy ETF is VanEck’s acknowledgement of cryptocurrency’s potential to become an investment vehicle. XBTF is similar to Valkyrie’s bitcoin future-focused fund but with a smaller expense ratio at 0.65%. Thus, XBTF is one of the lowest ETF funds available. It currently has $22.1 million assets under its management.

Five Year Market Performance

Year ETF Dividend Value
2021 n/a
2020 n/a
2019 n/a
2018 n/a
2017 n/a


9. ARK Next Generation Internet ETF (ARKW)

  • Expense Ratio: 0.83%
  • Volume: 1,623,554
  • Net Assets: $3.10B
  • Shares Outstanding: 30,249,354
  • Dividends: $0.20 (Annual)

ARKW focuses on the progress of technology by purchasing paying dividend shares from high technology and progressive technology companies. These include businesses and funds that own bitcoin, such as Tesla and Grayscale Bitcoin Trust. Alternatively, it focuses on next-gen technologies that eased work-from-home, payment, communication, and other aspects of life during the pandemic and beyond.

The fund is most likely to purchase shares from startup companies that focus on big data and artificial intelligence, cloud technologies, mobile technology and iOT, social platforms, and blockchain technologies.

Funds and companies included in the ARKW are the following:

  • Tesla Inc TSLA
  • Coinbase Global Inc – Ordinary Shares – Class A COIN
  • Grayscale Bitcoin Trust (BTC) GBTC
  • Spotify Technology S.A. SPOT
  • Zoom Video Communications Inc – Ordinary Shares – Class A ZM
  • Roku Inc – Ordinary Shares – Class A ROKU
  • Teladoc Health Inc TDOC
  • Twitter Inc TWTR
  • Twilio Inc – Ordinary Shares Class A TWLO
  • Shopify Inc – Ordinary Shares – Class A SHOP

Five Year Market Performance

Year ETF Dividend Value
2021 S$3.314
2020 S$.1.894
2019 n/a
2018 S$4.939
2017 S$0.127


10. Trust Indxx Innovative Transaction and Process ETF (LEGR)

  • Expense Ratio: 0.65%
  • Volume: 10,699
  • Net Assets: $158.58M
  • Shares Outstanding: 3,550,002
  • Dividends: $0.32 (Quarterly)

The Indxx Blockchain Index (INDX) is a price-weighted index designed to track the performance of the most liquid and actively traded index of blockchain companies. INDX is managed by an independent index provider and is designed to serve as a benchmark for investors seeking exposure to the performance of the blockchain ecosystem. 

The LEGR actively and accurately tracks companies that aim to benefit from blockchain technologies. Tech businesses and contributors to future technologies, such as Maersk A/S (Class B Shares) and AMD, who lead process development technology crucial to blockchain and cryptocurrency technologies.

Here are the top-performing companies in LEGR’s portfolio:

  • Micron Technology Inc. MU
  • Advanced Micro Devices Inc. AMD
  • NVIDIA Corp NVDA
  • Taiwan Semiconductor Manufacturing – ADR TSM
  • Infosys Ltd – ADR INFY
  • Cognizant Technology Solutions Corp. – Ordinary Shares – Class A CTSH
  • Mitsubishi UFJ Financial Group, Inc. – ADR MUFG

Five Year Market Performance

Year ETF Dividend Value
2021 S$0.32
2020 S$0.096
2019 S$0.11
2018 S$0.1
2017 n/a


5
Crucial Details to Consider Before Investing

1. Have Clear Objectives

By having a clear answer to your investment goals, the amount of risk you are willing to take, your appetite for risk, and your financial situation, you’ll have a clear idea on how much to invest and create a viable financial plan that dictates how much you can afford to invest, when to adjust, and have clear entry and exit strategies.

2. Learn How Blockchain Works

Every time someone buys something with a cryptocurrency, they record and encrypt it on the blockchain. Blockchain is a type of database that records who owns what.

Every cryptocurrency has its blockchain. When someone wants to buy something, they say how many coins of the cryptocurrency they own and ask for a certain number of coins of an item. That transaction is then encrypted and added to the blockchain. 

The blocks form a chain that does not erase its history, allowing anyone to trace the cryptocurrency’s full history of purchases and uses.

3. Read Cryptocurrency Roadmaps

Cryptocurrency whitepapers or roadmaps provide a detailed explanation of the cryptocurrency, the problem it solves, and how it works. Investors need to read a cryptocurrency whitepaper as it provides information about the project’s funding, the team behind it, and what their plans are for the future.

4. Consider That It’s Always a High-Risk Environment

Cryptocurrencies are high-risk investments because of the volatility and insecurity of their value. They are not yet widely accepted as a global currency, and the markets are not regulated or monitored by governmental or banking institutions. There is no legislation to protect the buyers from fraud and no one to potentially sue if the company turns out to be a scam or ceases operation.

However, you have recourse against cryptocurrency or blockchain ETFs because they’re SEC-registered funds.

5. Only Invest What You’re Willing to Lose

The cryptocurrency industry is rife with risk and volatility. Naturally, every investment will come with some degree of risk, but the question is, how much are you willing to invest in this volatility? 

As a new investor in this market, it’s important to understand what you’re getting into and how you can mitigate your risk.

men holding ipad with cryptocurrency

Our Final Thoughts

Cryptocurrency ETFs give investors much more stability than directly investing in cryptocurrencies and exchanges. However, the companies involved have no guarantees that assets under management can yield the best results. These top cryptocurrency ETFs give you the means to pool your funds with other investors and potentially gain high returns.

Key Takeaways

  • Cryptocurrency ETFs work like traditional ETFs but focus on cryptocurrency indexes and businesses that own cryptocurrencies or/and operate using blockchain technologies 
  • Some cryptocurrency ETFs invest in the futures of bitcoin, Ethereum, and others. On the other hand, some focus on buying shares from tech and other businesses that directly affect cryptocurrency’s overall viability, technology, and value.
  • Cryptocurrencies are still highly-volatile investments that are highly unregulated and give you zero guarantees of any returns. The value you’ve seen the previous hour may jump or fall drastically because of the extreme volatility.

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