The cryptocurrency space has returned to form in a big way this fall. Investors who’d bought into the spring and summer dip have been richly rewarded. Fortunately, it is probably not too late for Canadians to jump on this bull run. Today, I want to look at three red-hot crypto exchange-traded funds (ETFs) that can grant you exposure to this scorching sector. Let’s dive in.
Bitcoin has set another record: Look to this ETF!
This latest bull run should get investors into the Halloween spirit. Bitcoin is like Michael Myers or Jason Vorhees. The top digital currency is often dismissed or left for dead by its detractors, but it always seems to come back stronger than ever. It is also much friendlier to younger demographics. Bitcoin hit a record high of just over US$66,000 this week. It gained momentum on the back of the first United States Bitcoin futures ETF.
Canada was ahead of the game in this regard. Back in February, Purpose Bitcoin ETF (TSX: BTCC.B) debuted on the TSX. This ETF allows investors to snatch up direct exposure to Bitcoin. Better yet, this enables Canadians to hold the red-hot crypto ETF in a Tax-Free Savings Account (TFSA). You must pay capital gains in a standard digital wallet. Shares of this crypto ETF have climbed 40% in 2021 as of close on October 21.
This crypto ETF offers exposure to the two top digital currencies
What is better than owning an ETF that offers direct exposure to the world’s top digital currency? Owning an ETF that also offers exposure to the world’s second-largest digital currency! Evolve Cryptocurrencies ETF (TSX: ETC) provides investors with exposure to Bitcoin and Ethereum through the ETF structure.
Ethereum has tracked very closely with Bitcoin in 2021. It rose to an all-time high above US$4,000 in the first half of May before succumbing to a sharp retreat. However, its value would more than halve over the next two months. It has since regained momentum and is trading just above the US$4,100 mark.
This ETF launched on September 29, 2021. The new crypto ETF has put together a strong run since its debut. Its shares have climbed 5.2% in the week-over-week period.
Investors should not sleep on the technology that has enabled this market
Last month, I’d discussed why crypto stocks are also worth your attention in this bull market. Crypto miners have flourished, as this market has burst onto the mainstream. Blockchain Technologies ETF (TSX: HBLK) invests in a cross section of large-cap established companies and standalone blockchain firms. Shares of this crypto ETF have climbed 69% in 2021.
Canadian investors will recognize some of the top names in this crypto ETF. The largest holding is Nuvei, an electronic payment-processing company based in Montreal. Coinbase, which operates one of the top cryptocurrency exchange platforms, is also one of the top holdings in this fund. Canadians should look to snatch up this crypto ETF that also boasts some attractive diversification in other tech sectors. The ETF is up 118% from the same period in 2020.
