Crypto ETFs Dominate the Year's Top Performers
It has been a strong year for the equity markets, with the SPDR S&P 500 ETF Trust (SPY) up 28%, but the performance prize in 2024 goes to the daring and creative.
Among the 10 best performing non-leveraged ETFs this year, there is a cryptocurrency theme. But even more than the crypto theme, there is a theme of innovation and risk-taking among this year’s top performers.
Simplify Volt RoboCar Distribution and Tech ETF
The Simplify Volt RoboCar Distribution and Tech ETF (VCAR) is an actively managed strategy that primarily invests in Tesla stock, while employing technical and AI-drive news analysis for an options overlay strategy in tailoring the risk-adjusted performance.
This is a concentrated strategy with at least 80% of the assets invested in Tesla-related instruments, including Tesla common stock, Tesla-linked ETFs, Tesla-linked swap contracts and call options.
YTD performance thru Dec. 19: 213%
AUM: $23.3M
Expense ratio: 1.2%
Inception: Dec. 2020
Grayscale Bitcoin Trust ETF
The Grayscale Bitcoin Trust ETF (GBTC) is a passively managed fund offering exposure to the daily spot price of bitcoin. The fund owns bitcoin through its custodian. Holdings are priced daily based on the CoinDesk Bitcoin Price Index.
GBTC was pivotal in the launch of spot bitcoin ETFs due to its persistent legal efforts to convert from a closed-end fund into an ETF, culminating in a significant court victory against the SEC that set a precedent for subsequent approvals.
YTD performance thru Dec. 19: 158%
AUM: $22.4B
Expense ratio: 1.5%
Inception: Jan. 2024
Hashdex Bitcoin Futures ETF
The Hashdex Bitcoin Futures ETF (DEFI) invests directly in bitcoin and bitcoin futures contracts to track the price of the cryptocurrency.
Launched before the SEC’s January 2024 approval of spot bitcoin ETFs, DEFI is defined as a passive strategy even though it invests in futures contracts.
YTD performance thru Dec. 19: 140%
AUM: $17M
Expense ratio: 0.94%
Inception: Sept. 2022
Simplify Bitcoin Strategy Plus Income ETF
The Simplify Bitcoin Strategy Plus Income ETF (MAXI) differentiates itself from typical crypto ETFs by combining exposure to bitcoin futures with an income-generating strategy that involves selling short-dated put and call spreads on various equity and fixed income instruments, aiming to provide both capital appreciation and income generation.
YTD performance thru Dec. 19: 138%
AUM: $57M
Expense ratio: 6.1%
Inception: Sept. 2022
ProShares Bitcoin Strategy ETF
The first U.S. ETF to track the performance of bitcoin, the ProShares Bitcoin Strategy ETF (BITO) is an actively managed portfolio of front-month CME bitcoin futures contracts. The strategy is designed to provide performance that generally corresponds to the price and year of bitcoin futures contracts.
YTD performance thru Dec. 19: 136%
AUM: $2.6B
Expense ratio: 0.95%
Inception: Oct. 2021
First Trust SkyBridge Crypto Industry and Digital Economy ETF
An indirect play on cryptocurrencies, the First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT) actively invests in companies participating in the cryptocurrency industry, including crypto miners and trading platforms, companies involved in blockchain and other companies operating within the cryptocurrency and digital economy sectors, such as MicroStrategy (MSTR) and Coinbase (COIN), rather than directly holding cryptocurrencies.
YTD performance thru Dec. 19: 122%
AUM: $112M
Expense ratio: 0.85%
Inception: Sept. 2021
Ark 21Shares Active On-Chain Bitcoin Strategy ETF
Another crypto-focused exchange-traded fund to make our list of top performers, the Ark 21Shares Active On-Chain Bitcoin Strategy ETF (ARKC) is an actively managed ETF of ETFs that allocates to bitcoin futures contracts and cash equivalents as part of a price optimization strategy.
ARKC uses a quantitative trend-following methodology and does not directly own bitcoin.
YTD performance thru Dec. 19: 119%
AUM: $2.7M
Expense ratio: 0.93%
Inception: Nov. 2023
Bitwise Bitcoin Strategy Optimum Roll ETF
The Bitwise Bitcoin Strategy Optimum Roll ETF (BITC) is designed to combine the growth potential of bitcoin with the stability of U.S. Treasuries. It employs a proprietary, rules-based rotation strategy that adjusts exposure based on market momentum, aiming to capitalize on bitcoin's upward trends while managing risk during volatile periods.
Like other crypto-focused exchange-traded funds in 2024, BITC benefitted from the doubling in price for BTC, largely , driven by increased adoption and the launch of spot bitcoin ETFs in the U.S.
YTD performance thru Dec. 19: 118%
AUM: $21.5M
Expense ratio: 0.88%
Inception: March 2023
ProShares Bitcoin and Ether Market Cap Weight Strategy ETF
The ProShares Bitcoin and Ether Market Cap Weight Strategy ETF (BETH) is an actively managed fund that uses futures contracts for bitcoin and Ethereum to provide indirect exposure to the two most popular cryptocurrencies.
YTD performance thru Dec. 19: 114%
AUM: $14M
Expense ratio: 0.95%
Inception: Oct. 2023
YieldMax NVDA Option Income Strategy ETF
The YieldMax NVDA Option Income Strategy ETF (NVDY) is riding the popularity of Nvidia Corp. by using a covered-call strategy to generate income from the high-flying technology stock.
YTD performance thru Dec. 19: 109%
AUM: $1.4B
Expense ratio: 1.01%
Inception: May 2023