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Bitcoin has been all the rage over the past few years as cryptocurrency continues to gain widespread adoption among companies and investors. Investors are not necessarily using Bitcoin as a currency but instead as a store of value as the Fed continues to print money at will. In addition, major developments like NFTs, crypto exchanges, and the popularity of alternative cryptocurrencies like Dogecoin and Solana have brought widespread coverage to the asset class with Bitcoin remaining the king of all the cryptos.
While Canada has been able to get through several direct Bitcoin ETFs, U.S. investors need to be creative to gain exposure to Bitcoin and other cryptocurrencies through an ETF as several U.S. Bitcoin ETFs are pending with the SEC.
Below are ETFs that U.S investors can buy in 2021 that give them exposure to Bitcoin and other cryptocoins:
Grayscale Bitcoin Trust (OTC: GBTC) –
While technically not an ETF, GBTC has for years provided investors ETF-like access to Bitcoin. The trust holds Bitcoin directly and issues shares. As of June 30, 2021 the trust held $22.6 billion in Bitcoin, up from $17.72 billion at the end of 2020. As of June 30, 2021, and December 31, 2020, the Trust held ~651,344 and ~607,039 Bitcoin, respectively. GBTC counts Cathie Wood’s ARK as a large holder. It is up 19.7% YTD.
Bitwise Crypto Industry Innovators ETF (NYSE: BITQ) –
Bitwise Crypto Industry Innovators ETF invests in companies involved in the crypto economy that have the majority of their revenue from business activity involving crypto. The current top 5 holdings of the ETF are: MicroStrategy (NASDAQ: MSTR), Coinbase (NASDAQ: COIN), Silvergate Capital (NYSE: SI), Marathon Digital Holdings (NASDAQ: MARA), and Hut 8 Mining (NASDAQ: HUT).
Viridi ESG Crypto Mining ETF (NYSE: RIGZ) –
Viridi ESG Crypto Mining is an actively managed ETF focused on the cryptocurrency mining industry. Current bitcoin miner holdings of the ETF include: Marathon Digital (NASDAQ: MARA), Bitfarms Ltd. (NASDAQ: BITF), Riot Blockchain, Inc. (NASDAQ: RIOT), Hut 8 Mining (NASDAQ: HUT), among others. The ETF also owns graphic card makers NVIDIA (NASDAQ: NVDA) and AMD (NYSE: AMD).