Bitcoin Fever Made Crypto ETFs 2023's Best Performers
Valkyrie, VanEck, ProShares funds led gains that mostly came in latter part of year.
Thanks largely to a fourth-quarter surge, crypto emerged as the undisputed king of 2023 (story continues beneath chart).
| Ticker | Name | YTD Performance | Weekly Performance | AUM ($, mm) |
| WGMI | Valkyrie Bitcoin Miners ETF | 304.07% | -5.75% | 73.31% |
| DAPP | VanEck Digital Transformation ETF | 285.02% | -4.84% | 95.13% |
| SATO | Invesco Alerian Galaxy Crypto Economy ETF | 266.36% | -4.48% | 8.44% |
| BITQ | Bitwise Crypto Industry Innovators ETF | 246.77% | -4.06% | 143.36% |
| BITS | Global X Blockchain and Bitcoin Strategy ETF | 214.01% | -15.19% | 25.38% |
| IBLC | iShares Blockchain and Tech ETF | 201.57% | -4.64% | 19.02% |
| CRPT | First Trust SkyBridge Crypto Industry and Digital Economy ETF | 193.86% | -4.31% | 35.81% |
| FDIG | Fidelity Crypto Industry and Digital Payments ETF | 166.00% | -3.59% | 80.84% |
| BITO | ProShares Bitcoin Strategy ETF | 137.33% | -2.30% | 1,700.13% |
| GFOF | Grayscale Future of Finance ETF | 136.23% | -7.39% | 7.19% |
The rally beginning in early October and coinciding with the increasing odds of a spot bitcoin ETF launching early this year, put 10 crypto-related ETFs atop the 2023 performance leaderboard for non-leveraged funds.
As the price of cryptocurrency flagship bitcoin tested the $45,000 range at year end and finished the year up more than 160%, it was a cryptocurrency mining ETF that led the pack. Even with a 73% increase in assets, the Valkyrie Bitcoin Miners ETF (WGMI) only grew to around $40 million, despite a 304% gain last year.
Coming in at a close second, the $70 million VanEck Digital Transformation ETF (DAPP) logged a 285% gain and saw assets increase by 95% during the year.
Similar to WGMI, DAPP tapped into the potential of the cryptocurrency and broader digitization infrastructure by offering pure-play to companies taking the lead in the digital transformation.
Crypto Rally Drove ETFs to the Sky
The top holding for the top two ETFs is bitcoin mining company Marathan Digital Holdings Inc., which finished the year up nearly 475%.
One of the things the top 10 ETFs had in common was being relatively new, with each fund having been launched in 2021 or 2022. And, with the exception of the $1.6 billion ProShares Bitcoin Strategy ETF (BITO), the asset levels were low, ranging from $6.7 million to $70.5 million.
BITO ranked ninth on the list with a 137.3% gain and a 1,700% increase in assets for the year.
For some perspective on the white-hot performance of these leaders, the SPDR S&P 500 ETF Trust (SPY) bounced back from an 18% decline in 2022 to gain 26.2% in 2023.
Contact Jeff Benjamin at [email protected] and find him on X at @BenjiWriter
