Crypto ETFs are often backed by multiple companies involved in blockchain technology. The underlying assets of a cryptocurrency-based ETF provide a collection of companies that can be bought and held in a single transaction. The low cost of a cryptocurrency ETF allows you to hold multiple profitable companies in your portfolio at once. It may prove to be a better investment option for tracking and trading individual cryptocurrencies in digital markets.

Direct cryptocurrency holders are exposed to cyberattacks. Many investors opt to purchase a hardware (aka “cold storage”) wallet to secure public and private keys to protect digital assets from cyber threats. Unlike cryptocurrencies, crypto ETFs offer a safer and more reliable investment alternative than trading crypto.

Crypto ETFs remain more liquid instruments through their listings on major exchanges like Nasdaq and NYSE, which makes them more regulated than many blockchain-based altcoins and decentralized applications.

Let’s review these top cryptocurrency-based ETFs on the market.

Zoom Transformation Data Sharing ETF (NYSEARCA:BLOK)

The Amplify Transformational Data Sharing ETF launched in 2018. Unlike most ETFs, this ETF does not track any specific index. It holds shares in several companies involved in the development and deployment of blockchain technology. These companies include Silvergate Capital Corp. (SI), MicroStrategy Inc. (MSTR) and HIVE Blockchain Technology (HIVE).

This ETF has an expense ratio of 0.70% and assets under management (AUM) of $547 million. Its 52-week low was $18.36 and its 52-week high was $57.01. The Amplify Transformational Data Sharing ETF is highly liquid with a daily trading volume of over 34,000 shares. It has an annual dividend yield of $5.75 per share.

Reality Shares Nasdaq ETF NexGen Economy (NASDAQ: BLCN).

Since 2018, the Reality Shares Nasdaq NexGen Economics ETF is open for trading. It tracks the Reality Shares Nasdaq Blockchain Economy Index, and holds shares in 73 companies. These companies include Galaxy Digital Holdings Ltd. (BRPHF), Baidu, Inc. (BIDU) and Micron Technologies (MU).

The expense ratio for this ETF is 0.68%. It has an AUM totaling $155.53 million. It has posted a 52-week low of $26.14 compared to a 52-week high of $52.28. The Reality Shares Nasdaq NexGen Economics ETF offers a $0.20 annual dividend yield per share, while trading over 7,000 shares daily. The ETF's 1-year return rate is currently at around 40%.