Best Crypto ETFs BITQ, BLOK, BITS Test Key Chart Levels

Cryptocurrency ETFs have become popular since the pandemic began because they help investors get around the challenges of investing in digital currencies. The best crypto ETFs are BITQ, BLOK and BITS.

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The number of digital coins is growing at a rapid pace and it can be difficult for investors to find the best coins.

Another challenge for investors investing directly in cryptocurrency is having to learn about crypto wallets and exchanges. Wallets are like private accounts that hold cryptocurrencies while crypto exchanges only allow crypto trades. That means you need to have separate crypto accounts to invest directly in digital coins.

Best Crypto ETFs to Watch

Through crypto ETFs, you can trade through the regular US stock exchanges, just as you would with a stock.

Keep in mind that several crypto ETFs that trade in US markets have derivatives instead of actual coins. They are different from ETFs that hold stocks or bonds.

But crypto ETFs behave like listed stocks and other ETFs that hold stocks. So the trading principles that apply to stocks also apply to crypto ETFs.

Some crypto ETFs also have blockchain companies. Blockchain is the technology behind cryptocurrencies and makes it possible to record financial transactions permanently on a peer-to-peer digital network.

Use the CAN SLIM System

The best guide to choosing cryptocurrency ETFs is the factors in IBD’s CAN SLIM method and chart analysis. A strong performance will distinguish a successful ETF. Growth in supply can be tracked through the ETF’s market capitalization and average trading volume.

It is always a good idea to choose a leader over a laggard. Leaders are companies that have shown strong growth in recent quarters. For cryptos, this means higher adoption rate along with significant price increase.

The price may depend on a number of factors. Some of these are similar to those that affect stocks, such as rising and falling offers. Others, such as technology upgrades that affect the price of coins, are not. Coins are also versatile and have several use cases that also affect the price.

As in the case of stocks, the market is an important factor and it is important for investors to understand the direction of the market. This is because a company with strong earnings and forecasts can underperform when the market direction falls. On the other hand, a company that has been trading above its support line can break out to new highs due to the momentum of an uptrending market.

Remember that cryptos are volatile assets and this affects their performance in all market conditions.

Since late July, IBD’s market outlook has been “confirmed uptrend.” Investors should remain cautious as recession fears have not dissipated and inflation remains high after reaching 9.1% in June. After the war between Russia and Ukraine and the news that OPEC+ has committed to only a small increase in oil production, oil continues to weigh on the markets.

Best Crypto ETFs to Watch

The best cryptocurrency ETFs are those that find support at their 50-day moving average or break through resistance lines.

The ProShares Bitcoin Strategy ETF (BITO) is the first US Bitcoin-linked ETF and has Bitcoin futures contracts. The ETF saw strong demand and as of April 2022 had $234 million in average dollar trading volume. It was in the top 4% of the most traded ETFs in the US, according to the company.

Its relative strength line, which compares the fund’s performance to the S&P 500, has been declining. Shares have fallen below their 50-day moving average. The ETF is not a good buy, at least until it climbs back above that line.

The Amplify Transformational Data Sharing ETF (BLOK) invests in blockchain companies. Top inventory includes Micro strategy (MSTR), Coin base (COIN), Silvergate capital (SI) and Accenture (ACN).

With a $635 million market cap, BLOK in July climbed above its 50-day line, although its poor relative strength rating remains a concern.

Best Crypto ETFs: Look for the 50-Day Line

The Bitwise Crypto Industry Innovators ETF (BITQ) has a market cap of $80 million, according to MarketSmith. The fund invests in MicroStrategy, Silvergate Capital, Coinbase, Marathon Digital Holdings (MARA), Riot Blockchain (RIOT) and other prominent players in crypto assets. Shares in BITQ in recent weeks have recently risen above the 50-day line, although the RS rating remains below 10.

Global X Blockchain and Bitcoin Fund (BITS) has a market cap of $9 million. The fund invests in the Global X Blockchain ETF (BKCH) and Bitcoin futures.

The shares are above the 50-day mark, although the RS rating is also low. Crypto ETFs are slowly recovering from deep falls, leaving them with low RS ratings and RS lines.

Valkyrie Bitcoin Miners ETF (WGMI) has a market cap of $4 million and is also above its 50-day line. The fund has several companies connected to Bitcoin mining, such as e.g Advanced Micro Devices (AMD), CleanSpark (CLSK), Bit farms (BITF), Hive Blockchain (HIVE) and Riot Blockchain.

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