Active management and cryptocurrency are converging to create some of the highest-performing exchange-traded funds (ETFs) in 2024. While passively managed spot bitcoin ETFs have shown strong results, three of the top five crypto ETFs—measured by year-to-date performance—are actively managed, futures-based funds.
Top-Performing Crypto ETFs of 2024
Below is a performance breakdown of the leading crypto ETFs as of June 2024:
| Ticker | Fund | Expense Ratio | AUM | YTD Return |
|---|---|---|---|---|
| GBTC | Grayscale Bitcoin Trust ETF | 1.50% | $19.7B | 77.67% |
| BTF | Valkyrie Bitcoin & Ether Strategy ETF | 1.24% | $56.4M | 59.61% |
| ARKA | ARK 21Shares Active Bitcoin Futures ETF | 0.70% | $18.1M | 57.55% |
| BITC | Bitwise Bitcoin Optimum Roll ETF | 0.88% | $13.1M | 57.34% |
| DEFI | Hashdex Bitcoin ETF | 0.945% | $12.6M | 56.15% |
👉 Discover how futures-based ETFs outperform spot funds
How Futures-Based Crypto ETFs Work
These ETFs invest in futures contracts that mimic cryptocurrency prices, offering regulated exposure without direct ownership of digital assets. Key mechanisms include:
- Rolling contracts: ETFs periodically replace expiring futures contracts to maintain exposure.
- Basis risk: The difference between futures and spot prices can cause slight tracking deviations.
Advantages
- Regulated: Oversight by the SEC reduces risks associated with unregulated exchanges.
- Liquidity: Easier to trade than direct crypto purchases.
- Convenience: No need for private key management.
Disadvantages
- Tracking error: Price may not perfectly mirror the underlying asset.
- Higher fees: Expense ratios exceed those of spot ETFs.
- Counterparty risk: Default by contract parties could lead to losses.
Futures vs. Spot Crypto ETFs
| Feature | Futures-Based ETFs | Spot Bitcoin ETFs |
|---|---|---|
| Ownership | Indirect (via contracts) | Direct (holds bitcoin) |
| Tracking accuracy | Moderate (basis risk) | High |
| Fees | Higher (0.70%–1.50%) | Lower (~0.25%) |
| Regulatory oversight | SEC-regulated | SEC-regulated |
👉 Learn why active management dominates crypto ETFs
FAQs
1. Are futures-based crypto ETFs safer than buying bitcoin directly?
Yes, they offer SEC-regulated exposure but come with tracking errors and fees.
2. What causes tracking errors in futures-based ETFs?
Rolling contracts and basis differences between futures and spot prices.
3. Which crypto ETF has the lowest fees?
ARK 21Shares Active Bitcoin Futures ETF (0.70%).
4. Do these ETFs pay dividends?
No, returns are based solely on price appreciation.
5. Can futures-based ETFs short cryptocurrencies?
Some may use inverse contracts, but most track long positions.
Key Takeaways
- Actively managed futures ETFs dominate 2024’s top performers.
- Grayscale Bitcoin Trust (GBTC) leads with a 77.67% YTD return.
- Futures ETFs provide liquidity and regulation but incur higher costs.
For investors seeking diversified crypto exposure, these ETFs balance innovation with institutional safeguards.