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The cryptocurrency space resumed its shape this fall. Investors who had bought in the trough of spring and summer were amply rewarded. Fortunately, it is probably not too late for the Canadians to embark on this bull run. Today I want to take a look at three hotly-trending crypto exchange-traded funds (ETFs) that can give you exposure to this hot industry. Let’s dive in.
Bitcoin Set Another Record: Check Out This ETF!
This latest bull run should get investors into the Halloween spirit. Bitcoin is like Michael Myers or Jason Vorhees. The main digital currency is often dismissed or left for dead by its detractors, but it always seems to come back stronger than ever. It is also much more youth friendly. Bitcoin hit a record high of just over US $ 66,000 this week. It gained momentum thanks to the first Bitcoin futures ETF in the United States.
Canada was ahead of the game in this regard. Back in February, Bitcoin ETF objective (TSX: BTCC.B) debuted on TSX. This ETF allows investors to gain direct exposure to Bitcoin. Best of all, it allows Canadians to hold the crypto ETF in a Tax Free Savings Account (TFSA). You have to pay the capital gains in a standard digital wallet. The shares of this crypto ETF climbed 40% in 2021 to the October 21 close.
This crypto ETF offers exposure to the two major digital currencies
What could be better than owning an ETF that offers direct exposure to the world’s best digital currency? Own an ETF that also provides exposure to the world’s second largest digital currency! ETF Evolving on cryptocurrencies (TSX: ETC) offers investors exposure to Bitcoin and Ethereum through the ETF structure.
Ethereum followed Bitcoin very closely in 2021. It hit an all-time high above US $ 4,000 in the first half of May before succumbing to a sharp pullback. However, its value would drop by more than half over the next two months. It has since gained momentum and is trading just above the US $ 4,100 mark.
This ETF was launched on September 29, 2021. The new crypto ETF has had a strong run since its inception. Its shares climbed 5.2% in the week-over-week period.
Investors should not sleep on the technology that has enabled this market
Last month I explained why crypto stocks deserve your attention in this bull market as well. Crypto miners have flourished as this market has burst into the mainstream. ETF on Blockchain Technologies (TSX: HBLK) invests in a representative sample of established large-cap companies and stand-alone blockchain companies. The shares of this crypto ETF climbed 69% in 2021.
Canadian investors will recognize some of the biggest names in this crypto ETF. The largest holding is Nuvei, an electronic payment processing company based in Montreal. Coinbase, which operates one of the best cryptocurrency exchange platforms, is also one of the main holdings of this fund. Canadians should look to grab this crypto ETF which also benefits from attractive diversification into other tech sectors. The ETF is up 118% compared to the same period in 2020.