This year, cryptocurrency-related ETFs have performed remarkably well

Cryptocurrency-related ETFs are exchange-traded funds that provide investors exposure to cryptocurrencies like Bitcoin or Ethereum without requiring them to hold the actual digital assets. They may track the price of cryptocurrencies directly or invest in companies and projects within the crypto ecosystem.

The success of cryptocurrency-related ETFs can be attributed to growing interest in digital assets, advancements in regulatory clarity, and the introduction of Ethereum and Bitcoin spot ETFs, which have made crypto investments more accessible to traditional investors.

Spot ETFs directly track the price of the underlying cryptocurrency (e.g., Bitcoin or Ethereum) in real-time, offering a more accurate representation of their value compared to futures-based ETFs. This makes them attractive to investors seeking direct exposure to crypto assets.

According to Nate Geraci, the CEO of ETF Store, the top eight ETFs introduced this year include two Ethereum spot ETFs, two MicroStrategy ETFs, and four Bitcoin spot ETFs. These have outperformed other ETFs in 2024.

MicroStrategy ETFs invest in MicroStrategy, a company well-known for holding significant Bitcoin reserves. These ETFs allow investors to gain indirect exposure to Bitcoin through the performance of MicroStrategy’s stock. In contrast, Bitcoin or Ethereum ETFs directly track the performance of these cryptocurrencies.