Cryptocurrency Dominates 2023's Top ETFs

Senior ETF Analyst

Oct 03, 2023

Reviewed by: Mark Nacinovich

Edited by: Sean Allocca

Cryptocurrency ETFs are dominating the performance charts three quarters of the way through the year.

Nine of the 10 best-performing ETFs (excluding leveraged and inverse funds) hold crypto-related stocks, including the Valkyrie Bitcoin Miners ETF (WGMI) and the VanEck Digital Transformation ETF (DAPP), each of which has more than doubled this year.

Despite facing regulatory headwinds and shaky sentiment, crypto ETFs partially rebounded from the pounding they took in 2022. The price of bitcoin currently trades around $28,000, up significantly from the low of $16,000 reached in November of 2022. However, that still leaves the cryptocurrency well below its $68,000 high from November 2021.

In addition to WGMI and DAPP, a few other crypto ETFs that are among this year’s ten best performers are the Bitwise Crypto Industry Innovators ETF (BITQ), the Invesco Alerian Galaxy Crypto Economy ETF (SATO), and the Global X Blockchain ETF (BKCH).

Meanwhile, the only non-crypto ETF in this year’s top ten is the MicroSectors FANG+ ETNs (FNGS). That fund has gained 65% year-to-date thanks to this year’s stellar performance of megacap tech stocks, like Meta, Apple and Microsoft.

Like cryptocurrencies, tech stocks got hit hard in 2022 and then rebounded this year. But unlike crypto, which today is primarily a speculative asset class, tech stocks are minting money. FNGS hit a fresh all-time high in July, surpassing its peak from last year.

Beyond the Top 10 ETFs of 2023

Beyond the top ten, ETFs tied to sugar, Tesla, uranium, and semiconductors make an appearance.

The Teucrium Sugar Fund (CANE) is up 55% so far this year as a drought in the world’s No.2 exporter Thailand weighs on supplies.

The YieldMax Tsla Option Income ETF (TSLY) is up 50% year-to-date as selling options on volatile shares of Tesla pays off for the fund.

The Sprott Uranium Miners ETF (URNM) is up 49% thanks to a renaissance in nuclear power; and the VanEck Semiconductor ETF (SMH) is up by 43% on the back of the AI-related boom in chip companies like Nvidia and Broadcom.

Email Sumit Roy at [email protected] or follow him on Twitter @sumitroy2       

Sumit Roy

| Contact: [email protected]

Sumit Roy is the senior ETF analyst for etf.com, where he has worked for 13 years. He creates a variety of content for the platform, including news articles, analysis pieces, videos and podcasts.

Before joining etf.com, Sumit was the managing editor and commodities analyst for Hard Assets Investor. In those roles, he was responsible for most of the operations of HAI, a website dedicated to education about commodities investing.

Though he still closely follows the commodities beat, Sumit covers a much broader assortment of topics for etf.com, with a particular focus on stock and bond exchange-traded funds.

He is the host of etf.com’s Talk ETFs, a popular video series that features weekly interviews with thought leaders in the ETF industry. Sumit is also co-host of Exchange Traded Fridays, etf.com’s weekly podcast series.

He lives in the San Francisco Bay Area, where he enjoys climbing the city’s steep hills, playing chess and snowboarding in Lake Tahoe.

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