Better Than Bitcoin? Investors Find A New Gold Mine

10 months ago 163

When it comes to get-rich-quick assets, Bitcoin terms gains are pugnacious to beat. But investors this twelvemonth are inactive uncovering ETFs and related funds that apical adjacent the cryptocurrency sensation.


Bitcoin is the astir fashionable integer currency, holding a marketplace worth of $916.6 billion, says Coinbase. And it's besides an astonishing performer: The terms of Bitcoin is up much than 300% implicit the past 12 months.

But this year, the Bitcoin terms summation is getting superior contention from different funds and ETFs betting connected adjacent hotter trends. Rival cryptocurrency Ethereum, bulk shipping and accepted vigor ETFs plus, ironically, those that put successful offsets to vigor are outperforming Bitcoin.

"Bitcoin is rallying arsenic the dollar falls ... but cryptocurrency traders person laser eyes for Ethereum," said Edward Moya, elder marketplace expert astatine Oanda, a currency tracking firm. "Ethereum is each the buzz successful the cryptoverse."

Bitcoin Price Gains Set A High Bar

It's not casual for ETF investors to bushed Bitcoin terms gains. But they're finding caller golden mines.

For instance, Bitcoin is losing crushed to Grayscale Ethereum Classic Trust (ETCG) and Grayscale Ethereum Trust (ETH). Both funds are easy topping the one-year returns of Grayscale Bitcoin Trust (GBTC), rising much than 800% and astir 600%, respectively.

Grayscale Bitcoin Trust is an concern money that tracks the price question of Bitcoin. The fund, which is not technically an ETF, is up astir 300% successful the past 12 months, ranking it No. 5 among each ETFs and related funds by Morningstar.

And conscionable this year, Grayscale Ethereum Classic is up astir 1,000% and Ethereum Trust roseate 343%. The funds ain antithetic variations of Ethereum cryptocurrency, explaining the quality successful their gains, says Craig Salm, vice president, ineligible astatine Grayscale.

Both are leaving Grayscale Bitcoin Trust successful the dust. The Bitcoin ETF is is up much than 60% this year. That's good. But it ranks conscionable No. 26 successful Morningstar's ETF universe. Well down Ethereum.

Grayscale, though, is inactive moving to person each these cryptocurrency funds into afloat ETFs, Salm says. "We are 100% committed to converting GBTC, and our different concern products, into ETFs," helium said. Grayscale hired David LaValle to spearhead the effort.

Shipping: Hotter Than Bitcoin Price Gains?

But don't deliberation lone intangible, high-tech integer currencies tin apical the tally successful the Bitcoin terms this year. Another large victor is solidly thing you tin spot and touch.

Breakwave Dry Bulk Shipping ETF (BDRY) is rallying owed to off-the-charts shipping demand and pricing powerfulness for moving carnal goods astir the world.

The ETF is up much than 255% this year, edging retired the summation by the Grayscale Bitcoin Trust successful that time. The ETF tracks the charter complaint for shipping goods similar robust ore, ember and grains utilizing futures contracts.

Energy And Green ETFs Turn It On, Too

The rising Bitcoin terms whitethorn amusement request for a coveted new-age commodity. But accepted commodity assets are proving lucrative, too.

And successful different absorbing twist for ETF investors this year, there's plentifulness of ways to marque wealth some connected the soaring prices of energy, but besides offsets to assistance bounds its use.

VelocityShares 3x Long Natural Gas ETN (UGAZF), for instance, uses leverage to magnify moves successful the underlying commodity. Just this year, the money is up much than 250%. The  terms of Natural Gas based connected Nymex contracts is up much than 70% from its 52-week low. Likewise, ProShares Ultra Bloomberg Natural Gas (BOIL) is up strongly, too, rising much than 130% this year.

And here's the twist. Investors, portion scoring large connected vigor funds, are meantime hitting it large with funds designed to assistance mitigate merchandise of planet-warming carbon into the ambiance by accepted energy.

The iPath Global Carbon ETF (GRNTF), for instance, is up astir 90% this twelvemonth — capable to apical the emergence successful Bitcoin prices. Carbon offsets pull attraction arsenic galore nations purpose to deed c neutral by 2050. This ETF tracks the Barclays Global Carbon Index. It uses futures contracts connected emanation credits companies commercialized connected the European Climate Exchange.

So portion Bitcoin is so a sensation, it's not the lone mode to get large results from funds this year.

Better Than Bitcoin?

Select ETFs, funds outperforming Bitcoin successful 2021 truthful far 

Name Ticker YTD full instrumentality % Total instrumentality %, 12 months
Grayscale Ethereum Classic Trust (ETCG) 997.8% 810.0%
Grayscale Ethereum Trust (ETHE) 343.7 574.9
Breakwave Dry Bulk Shipping (BDRY) 255.5 223.0
VelocityShares 3x Long Natural Gas ETN (UGAZF) 252.9 -30.0
Direxion Daily Retail Bull 3X (RETL) 150.6 354.5
ProShares Ultra Bloomberg Natural Gas (BOIL) 135.8 5.2
MicroSector US Big Banks 3X Lvrgd ETN (BNKU) 122.9 336.2
Direxion Daily MSCI Real Est Bull 3X (DRN) 105.5 134.7
iPath Global Carbon ETN (GRNTF) 89.0 108.8
iPath Series B Carbon ETN (GRN) 85.3 103.8
Grayscale Bitcoin Trust* (GBTC) 62.8 298.2
Sources: IBD, Morningstar Direct, S&P Global Market Intelligence done Aug. 31, * - shown for comparison
Follow Matt Krantz connected Twitter @mattkrantz


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