3 Crypto ETFs for Exciting Exposure to Digital Assets

In the wake of the latest financial crisis, cryptocurrencies soared higher. It was all thanks to the two main catalysts. One, there is news that the US government will insure virtually all deposits at Silicon Valley Bank. Secondly, there is speculation that interest rate increases may now slow down, or be stopped. Not only has it been positive for cryptocurrencies, but also for crypto stocks and crypto ETFs.

“As players begin to understand the role that US monetary policy, inflation and rate hikes have played in the current challenges in the banking sector, you will likely see a move towards Bitcoin (BTC-USD) and other forms of crypto as a reflection of their potential value as a hedge and alternative store of value in such times, said Gabriella Kusz, CEO, Global Digital Asset & Cryptocurrency Association, quoted by Bankrate.com.

But if digital asset investing isn’t your thing, there’s always cryptocurrency miners, or even stocks like MicroStrategy, which owns around 130,000 Bitcoin. Or you can always diversify at low cost with digital asset ETFs, such as the following.

ProShares Bitcoin Strategy ETF (BITO)

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Since the bottom of around $9.50 in late 2022, has Pro Shares Bitcoin Strategy ETF (NYSEARCA:BITO) rocketed to a recent high of $14.98. From here, I would like to see it first fill its bearish gap around $17.50, and then potentially fill around $22.50. With an expense ratio of 0.95%, the ETF tracks the performance of spot Bitcoin and is the world’s largest and most traded cryptocurrency ETF, according to ProShares.

BITO mimics the price of Bitcoin as closely as possible without investing in the cryptocurrency itself. As noted by Money.com, “Like all crypto ETFs, part of the allure of BITO is that investors don’t have to deal with cryptocurrency wallets and private keys, but can instead invest through a broker they already use.”

ProShares Short Bitcoin (BITI)

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Or, if you think that Bitcoin will fall in price again, or if you want to hedge a long bet, it is too ProShares Short Bitcoin (NYSEARCA:BITI). This tracks the S&P CME Bitcoin Futures index, with profitability calculated daily (before fees and expenses) as the inverse (-1x) of the index’s daily performance. BITI has a cost share of 0.97%. Currently, BITI is trading at $24.69 – gaping lower, after Bitcoin rocketed higher.

Global X Blockchain & Bitcoin Strategy ETF (BITS)

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Another hot digital asset ETF to consider is Global X Blockchain & Bitcoin Strategy ETF (NASDAQ:BITS). With an expense ratio of 0.65%, the BITS ETF takes long positions in US-listed bitcoin futures contracts and invests, directly and/or indirectly, in companies positioned to benefit from the increased use of blockchain technology, as noted by Global X ETFs .

Although BITS does not invest directly in Bitcoin, it offers investors exposure to crypto companies working on next-generation technologies, creating the potential for outsized returns, Global X ETFs added.

At the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing Guidelines.