There are many different ways to invest in cryptocurrencies. Rather than making huge upfront investments, you can buy and sell tokens associated with the portfolios in which you’re interested. These tokens are generally tied to the fund’s performance. Investing in a cryptocurrency fund can be quite risky, however, and it’s important to understand the risks.
NFTZ
The NFTZ ETF tracks the market cap of publicly traded companies with relevant exposure to blockchain, cryptocurrency, and NFTs. It has forty holdings and trades on the New York Stock Exchange. The fund has an expense ratio of 0.65%. The fund is geographically diversified across ten countries.
The Fund’s portfolio will primarily consist of investments in Crypto and Blockchain Companies. In addition, it holds equity securities of companies with exposure to a diverse range of industries. As such, the fund’s performance may not be directly affected by the economic fortunes of these industries. However, it will provide an opportunity to invest in these companies and earn a return on your initial investment.
The NFTZ will complement the broader portfolio of cryptocurrency ETFs, which currently includes the Amplify Investments Transformational Data Sharing ETF with $1.7 billion in assets under management. Other recent offerings include the First Trust SkyBridge Crypto Industry and Digital Economy ETF with $70 million in assets under management. And the Invesco Alerian Galaxy Crypto Economy ETF has $10 million in assets under management.
BLCN
Investing in a cryptocurrency mutual fund is a great way to invest in the technology industry, and the BLCN cryptocurrency fund is a good option. Its holdings include blockchain companies and other related companies. Silvergate Capital (SI) is its largest holding. The firm provides banking services and loans to fintech, communications, and blockchain companies. This fund has investments in China and Japan.
BLCN is one of the first ETFs to focus on blockchain technology. It tracks a global index of companies that have invested in blockchain technology. Each company is assessed based on a number of criteria, the main one being how much material resources it dedicates to developing blockchain technology. The index committee assigns a “blockchain score” to the companies that meet this criterion. The higher the score, the more the index weights that company. The BLCN has 59 holdings and currently has a market cap of $115 billion.
The fund’s top 10 holdings account for 63% of its net assets. The top three companies are Riot Blockchain, Marathon Digital Holdings, and Hut 8 Mining. Half of the fund’s assets are invested in front-month Bitcoin futures and 50% is invested in monthly Bitcoin futures. As a result, investors can expect to see an increased exposure to spot Bitcoin than other crypto ETFs.
Tokenbox
The Tokenbox cryptocurrency mutual fund is a platform that enables users to invest in cryptocurrencies. Its web interface allows users to create and maintain a portfolio, and it offers professional portfolio managers that are not allowed to withdraw funds from the platform. Users can also buy and sell tokens through the platform. It is completely automated, which makes it safe and secure for users.
Many cryptocurrency funds require investors to invest a significant amount of money up front. But Tokenbox does away with that problem by tokenizing the portfolios and allowing investors to invest in the tokens that are associated with the portfolios. These tokens can then be bought and sold using Tokenbox, a general wallet and exchange. The performance of the funds is tied to the value of the tokens attached to them.
Another great feature of Tokenbox is that it offers an extensive portfolio management system that allows users to follow their investment portfolio. Detailed descriptions of each portfolio are provided on Tokenbox’s website, along with performance indicators and statistics that can help users make educated investment decisions. Users can also deposit cryptocurrencies directly into their Tokenbox account or purchase tokens using their credit cards or fiat.
Valkyrie
The Valkyrie cryptocurrency mutual fund is a new type of exchange-traded fund (ETF). It tracks the price of Bitcoin. Bitcoin is a digital currency that has soared in value from less than $500 to more than $65,000 over the past two years. The new ETF debuted in October 2021 and initially traded above $20,000.
The Valkyrie ETF tracks the price of CME Bitcoin futures. The CME is the largest Bitcoin futures exchange in the US. Because ETFs are more established financial instruments, they have higher regulatory protections. Investors should be careful about the risk of losing money when buying or selling an ETF.
Valkyrie’s other product, the Bitcoin Miners ETF, is a crypto investment product that tracks the securities of mining companies. It will delist from the Nasdaq Exchange on Oct. 31, 2022, and shareholders will have until Oct. 28 to sell their shares. Those investors who own shares at the time of liquidation will receive a cash distribution equal to the net asset value of the ETF’s assets. Investors will also be repaid for any brokerage costs and liquidation expenses.
