Interest in Bitcoin and other cryptocurrencies skyrocketed in 2024, following a strong rebound in their performance.
While Bitcoin has fallen around 20% from its peak, it is still up around 30% over the past 6 months. Impressively, it has surged more than 1000% over 5 years.
Over the past couple of years, cryptocurrency has become more mainstream. The proportion of institutions exposed to cryptocurrency has steadily increased, with financial institutions now holding almost 50% of crypto securities.
The Trump administration has also been a strong backer of digital currency, naming entrepreneur David Sachs 'AI and Crypto Czar', and announcing its intention to establish a Strategic Reserve and U.S. Digital Asset Stockpile.
This has left many prospective investors wondering whether they should invest. However, after several high-profile scandals surrounding cryptocurrency exchanges in recent years, investors may be hesitant to put their money into these platforms.
Fortunately, ASX ETFs can provide a safe and more direct way to invest in the sector. This removes many of the risks associated with more emerging platforms. A greater level of regulation that comes with ASX ETF investing improves safety and security. Crypto investments are managed alongside other assets.
It also allows investors to hold their investments in the same place as their equity investments. That saves having to remember several login details. Investing in crypto has never been more convenient.
Those new to the crypto world might want to consider these two ETFs.
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Global X 21Bitcoin ETF (EBTC)
Global X 21Bitcoin ETF, which launched in May 2022, offers direct exposure to Bitcoin. For a management expense of 0.45%, it tracks the performance of Bitcoin in Australian dollars. While this fee exceeds many ASX ETFs, it allows investors to buy and sell bitcoin in a regulated environment without the risk of losing the private key to a cryptocurrency wallet. The bitcoin is held with Coinbase, the world's largest custodian of cryptocurrencies in 'cold storage'. This involves storing Bitcoin private keys offline (removed from any internet access). Over the past year, Global X 21Bitcoin ETF has climbed almost 30%.
In February 2025, Betashares launched Betashares Bitcoin ETF (ASX: QBTC). This ETF also provides direct exposure to bitcoin for the same management fee.
Betashares Crypto Innovators ETF (ASX: CRYP)
For those after more diversified cryptocurrency exposure, Betashares Crypto Innovators ETF may be more appealing. It provides broader access to the crypto ecosystem, and the 'picks and shovels' of the industry. It contains more than 50 holdings across crypto exchanges, mining companies and mining equipment firms.
While the majority of the fund is in the information technology space, it also has sizable investments in financials and retail. It is also somewhat geographically diversified, with around 23% of its investments outside the United States. As of 28 February, its top 5 holdings were Metplannet (15.5%), Microstrategy (10.4%), Coinbase Global (8.0%), Marathon Digital Holdings (7.9%), and Galaxy Digital Holdings (7.8%).
Betashares Crypto Innovators ETF charges a management expense ratio of 0.67%, which is slightly above the pure-play bitcoin ETFs. It has also underperformed the Global X 21Bitcoin ETF over the past year, rising just 5%.
Foolish Takeaway
The last 12 months have seen renewed enthusiasm for Bitcoin and other cryptocurrencies. This has prompted investors to consider whether it is time to make an investment. Through ASX ETFs, investors can gain direct exposure to Bitcoin or more diversified exposure to the wider cryptocurrency ecosystem in a single trade. Whether you are starting out or a long-term cryptocurrency investor, ASX ETFs offer many compelling advantages over emerging platforms.
