For a crypto winter, things certainly seem to be warming up for bitcoin ETFs in 2023. This week’s top eight best-performing ETFs include bitcoin strategies from seven different shops and just one non-crypto strategy, the somewhat surprisingly included iShares MSCI Turkey ETF (TUR). Even while the fallout of the FTX affair from late last year continues to spread across the industry, bitcoin strategies are seeing some barnstorming returns for the week.
Why might the flagship cryptocurrency be gathering so much interest? The coin has reached the $22,500 range in recent days, which is a staggering turnaround from its low below the $16,000 mark. Part of it may be the number of miners who called it quits and are facing mounting debt, which will constrain the supply of bitcoin. Another factor could be high energy costs worldwide that have impacted the ability to easily yield new coins from active mines.
At the same time, like many other areas, investors could be flocking to an investment space that took a big hit last year for a value buy opportunity. Bitcoin still has a role to play in the global market for some investors, and that long-term thinking and opportunity could be big contributors to the growing price.
The foursome of the ProShares Bitcoin Strategy ETF (BITO), the Valkyrie Bitcoin Strategy ETF (BTF), the VanEck Bitcoin Strategy ETF (XBTF), and the Simplify Bitcoin Strategy PLUS Income ETF (MAXI) all returned more than 14% over the last week, with returns of 14.6%, 14.5%, 14.5%, and 14.2% respectively.
TUR gets a special mention as separate from the bitcoin pack for its Turkey focus, passively investing in the eastern Mediterranean nation. The ETF returned 10.1% over the last week, charging just 57 basis points.
XBTF stands out with the cheapest expense fee among the four leading bitcoin strategies, charging 65 basis points for its active management approach. The strategy, which launched back in 2021, invests in bitcoin indirectly with cash-settled bitcoin futures contracts, representing an appealing strategy on the menu of bitcoin ETFs in 2023.
These were last week’s top performing ETFs. We’ve excluded funds which use leverage or make inverse bets on their underlying assets.
|Ticker||Name||1 Week Return|
|(BITO )||ProShares Bitcoin Strategy ETF||14.62%|
|(BTF )||Valkyrie Bitcoin Strategy ETF||14.49%|
|(XBTF )||VanEck Bitcoin Strategy ETF||14.47%|
|(MAXI )||Simplify Bitcoin Strategy PLUS Income ETF||14.15%|
|(DEFI )||Hashdex Bitcoin Futures ETF||13.84%|
|(TUR )||iShares MSCI Turkey ETF||10.10%|
|(BITS )||Global X Blockchain & Bitcoin Strategy ETF||9.58%|
|(CRYP )||AdvisorShares Managed Bitcoin Strategy ETF||7.66%|
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