Introduction
Cryptocurrency Exchange-Traded Funds (ETFs) have emerged as a popular investment vehicle for gaining exposure to digital assets like Bitcoin and Ethereum without directly owning them. This guide explores key cryptocurrency ETFs, their performance metrics, and investment strategies.
Cryptocurrency ETF Performance Overview
| Code | ETF Name | Investment Focus | Date | Currency | Annualized Std Dev | Sharpe (1Y) | Beta (1Y) |
|---|---|---|---|---|---|---|---|
| 3008 | Bosera HashKey Bitcoin ETF | Crypto | 07/03 | HKD | 44.70 | 0.41 | 0.98 |
| 3009 | Bosera HashKey Ether ETF | Crypto | 07/03 | HKD | 79.44 | -0.02 | 0.96 |
| 3042 | ChinaAMC Bitcoin ETF | Crypto | 07/03 | HKD | 44.50 | 0.40 | 0.97 |
| 3066 | CSOP Bitcoin Futures ETF | Crypto | 07/03 | HKD | 44.10 | 0.34 | 0.96 |
| BTC | Grayscale Bitcoin Mini Trust ETF | Crypto | 07/03 | USD | N/A | N/A | N/A |
| BITO | ProShares Bitcoin Strategy ETF | Crypto | 07/03 | USD | 46.80 | 0.36 | 0.95 |
| IBIT | iShares Bitcoin Trust ETF | Crypto | 07/03 | USD | 47.22 | 0.40 | 0.96 |
👉 Explore top-performing Bitcoin ETFs
Key Investment Considerations
1. Risk Metrics
- Volatility (Annualized Std Dev): Measures price fluctuations (e.g., Ether ETFs show higher volatility than Bitcoin).
- Sharpe Ratio: Evaluates risk-adjusted returns (>0 indicates better performance).
- Beta: Assesses correlation with the crypto market (1 = market-matching volatility).
2. Currency Diversification
ETFs are available in multiple currencies (USD, HKD, RMB), catering to global investors.
3. Investment Strategies
- Spot ETFs: Direct exposure to cryptocurrencies (e.g., Grayscale Bitcoin Trust).
- Futures-Based ETFs: Track derivatives (e.g., ProShares Bitcoin Strategy ETF).
- Leveraged/Inverse ETFs: Amplify gains or hedge against declines (e.g., 2x Bitcoin ETFs).
FAQs
Q: Which ETF has the lowest volatility?
A: The CSOP Bitcoin Futures ETF (HKD) has the lowest annualized standard deviation (44.10).
Q: Are Ethereum ETFs riskier than Bitcoin ETFs?
A: Yes—Ether ETFs exhibit nearly double the volatility (e.g., 79.44 for Bosera HashKey Ether ETF).
Q: Can I invest in crypto ETFs using RMB?
A: Yes, select ETFs like ChinaAMC’s offerings support RMB-denominated investments.
👉 Compare crypto ETF fees and performance
Conclusion
Cryptocurrency ETFs provide diversified exposure to digital assets with varying risk profiles. Investors should analyze metrics like volatility and Sharpe ratios to align with their risk tolerance. Stay updated with market trends to optimize your portfolio.
Note: All data is as of July 2024.