Is the Metaverse ETF the Best Way to Buy Cryptocurrencies in 2022?

The metaverse offers major growth potential and even now there are ETFs offering exposure, but is it really the best way to buy cryptocurrencies for 2022?

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As the popularity of the cryptocurrency industry has exploded throughout the last two years, several high-quality investments have been created to help investors gain exposure to, or buy cryptocurrencies. First, there were ETFs that simply offered exposure to major cryptocurrencies like Bitcoin. Even now, there are ETFs being launched that help give investors exposure to the metaverse.

This is not just a positive sign that the industry is taking cryptocurrencies seriously. It’s also beneficial for investors, as it’s now much easier to gain exposure to these high-potential and high-growth assets.

Not only do these ETFs help simplify the process of investing in cryptocurrencies, but they also allow investors to gain exposure in registered accounts, which could be another significant benefit.

Right now, it’s still extremely early in the cryptocurrency and blockchain industry. It’s even early to buy the metaverse ETFs, which still only have a small net asset value and are highly illiquid. So, because it’s still early days, it can be considerably risky to invest in the space. However, it also offers investors one of the best opportunities to buy these cryptocurrencies before they become a lot more mainstream.

So, the metaverse ETF might be appealing given all the hype around the potential of the industry going forward. However, here is a cryptocurrency stock to buy now that should offer better exposure to the incredible potential that the metaverse offers today.

Forget the metaverse ETF for now, this is the best way to buy cryptocurrencies in 2022

If you’re looking for the best way to buy or gain exposure to cryptocurrencies, one of the simplest investments you can make is in a fund like the CI Galaxy Ethereum ETF (TSX:ETHX.B).

Unlike the metaverse ETFs which, for now, will only offer exposure to publicly traded companies such as Apple and Meta Platforms, the CI Galaxy Ethereum ETF actually buys and holds Ether, the native token of Ethereum as its only investment.

This is a significant difference for a couple of reasons. First off, Apple, Meta Platforms, and the rest of the companies that the metaverse ETFs invest in may offer the best exposure to the metaverse of any public company. However, you still have exposure to tonnes of other operations, such as iPhone sales and advertising dollars spent on Instagram.

So, if you’re specifically bullish on the potential of the metaverse, you could actually gain better exposure by finding high-quality cryptocurrencies to buy that are the native tokens of exciting metaverse projects, such as MANA, the native token of Decentraland.

This is why, although these metaverse ETFs look exciting, I’m not rushing out to buy units of the fund just yet. Even if you don’t necessarily want to buy actual cryptocurrencies, and you’re just looking for the best way to buy cryptocurrencies through stocks, I believe the CI Galaxy Ethereum ETF is the best way to gain exposure. It owns actual cryptocurrency. Hence, it’s a far better option for investors today.

Ethereum offers investors incredible growth potential right now

While the companies in the metaverse ETF may be working on building their own version of the metaverse or maybe have technology that will see a tailwind as the space gains popularity, this growth will be further down the line.

With an investment in Ethereum today, not only is it also an exceptional long-term asset to hold in the crypto space, but you could immediately start to see significant growth in your investment as the industry begins to rally again.

Plus, you still have exposure to the increasing popularity of the metaverse. Decentraland, which I mentioned above, is already one of the most popular virtual worlds and is built on Ethereum’s blockchain. Another highly popular virtual world already is The Sandbox, which has the native token SAND and is also built on Ethereum’s blockchain.

So, if you’re genuinely bullish on the potential of the metaverse, gaining exposure to Ethereum, even with an ETF, looks like the best way to buy cryptocurrencies in 2022. If Decentraland, The Sandbox and other popular games do take off, it will positively impact Ethereum, and the blockchain could see another year of astronomical growth.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Fool contributor Daniel Da Costa owns Decentraland and Ethereum. The Motley Fool owns and recommends Bitcoin and Ethereum. The Motley Fool recommends Apple and Meta Platforms, Inc.

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