CryptocurrencyCryptocurrency is a form of digital or virtual currency that uses cryptography for security and operates independently of a central authority or traditional banking system. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability. Key Features: • Decentralization: Cryptocurrencies operate on a decentralized network of computers, meaning no central authority governs or regulates it. • Cryptography: Secure transactions and... exchange-traded funds (ETFs) have been among the top-performing investments in 2023, with some recording impressive gains, close to or above 100% for the year. These investment vehicles provide an easy way for traditional investors to gain exposure to the cryptocurrency market. Let’s spotlight the top 5 best crypto ETFs of 2023:
Valkyrie Bitcoin Miners ETF (WGMI): WGMI is an actively managed crypto ETF that focuses on companies generating at least 50% of their revenue from bitcoin miningMining is the decentralized process by which new coins are entered into circulation in the cryptocurrency world. It involves solving complex mathematical problems using computational power. Miners validate and record transactions on the blockchain and are rewarded with newly minted coins. More operations or related services. Instead of holding Bitcoin directly or futures, it invests in stocks and American depositary receipts (ADRs) listed on global exchanges. It delivered an impressive 108.28% return in 2023.
Bitwise Crypto Industry Innovators ETF (BITQ): BITQ aims to track a modified market-cap-weighted index of global companies involved in supporting the cryptocurrency economy. It categorizes companies into “Crypto Innovators” and “Crypto Economy” tiers. BITQ delivered a return of 97.64% in 2023.
Invesco Alerian Galaxy Crypto Economy ETF (SATO): SATO tracks an index composed of companies involved in cryptocurrency, crypto mining, cryptocurrency buying, enabling technologies, and exchange-traded products. It also includes private investment trusts like the Grayscale Bitcoin Trust (GBTC). In 2023, SATO recorded a return of 97.42%.
Global X BlockchainA blockchain is a decentralized and distributed digital ledger used to record transactions across multiple computers in a way that ensures the data can only be modified once it has been recorded. Once a block of data is recorded on the blockchain, it becomes extremely difficult to change it without altering all subsequent blocks, which requires consensus from the majority... More & Bitcoin Strategy ETF (BITS): BITS is an actively managed ETF aiming to capture the growth potential of blockchain companies and bitcoin futures. It does not invest directly in Bitcoin but provides exposure to blockchain companies. In 2023, BITS saw a return of 73.68%.
Hashdex Bitcoin Futures ETF (DEFIDeFi, short for "Decentralized Finance," refers to a movement that aims to create an open-source, permissionless, and transparent financial service ecosystem without the need for traditional intermediaries, such as banks, brokers, or insurance companies. DeFi platforms are primarily built on the Ethereum blockchain, leveraging smart contracts to automate complex financial transactions. Key Points: • Smart Contracts: At the heart of... More): DEFI tracks an index that provides the average closing settlement prices for the front-month bitcoin futures contracts listed on the Chicago Mercantile Exchange. It recorded a return of 51.73% in 2023.