Searching for the best crypto mutual fund? The best crypto mutual funds are in demand right now. That is because funds allow investors to invest in cryptocurrency without the need to get a crypto wallet or deal with a crypto exchange. What’s more, some offer good risk management by holding a basket of crypto.
Below we look into the advantages of crypto mutual funds and outline how they work. We review some of the newest funds to come to market. But first we present our stop press news – which is the availability of two hugely promising cryptos at their key presale phase. Read on to find out how you can get in on the ground floor.
A Closer Look at the Best Crypto Mutual Funds
From a risk point of view, mutual funds and crypto are not a natural pairing. Investors who have researched how to invest in mutual funds will know that these are traditionally a low-risk, low-gain investment. Cryptocurrency, on the other hand, is a dynamic investment asset, offering the potential for towering gains in a very short time.
Below we look at the best crypto mutual funds available – although they are thin on the ground. We begin by outlining some key opportunities along the far more direct route of investing in the most promising crypto – and that is with crypto presales.
Crypto Presales – A Better Alternative To Crypto Mutual Funds
As far as growth potential goes, the best crypto presales knock even the best crypto mutual fund for six.
If an investor has learnt how to invest in pre-IPO stocks, then they will be familiar with the idea of a presale. Before their Initial Public Offering (IPO), new stocks are sometimes exclusively available at a discount price. With a crypto presale, the principle is the same. Before some of the best future cryptocurrency is listed on exchanges, it is made available to investors at bargain prices.
The key thing for investors to understand about crypto presales is that the price of the crypto usually increases throughout several presale stages according to a set schedule. This means that buying early is almost guaranteed to put the investor at a paper profit.
Provided the crypto price does not dive immediately after listing, this profit can then be realized when the crypto token is released for general trading on one of the 500+ global crypto exchanges.
With over 21,000 crypto on the market, it is difficult to pick the winners. Our stringent criteria for judging opportunities have highlighted just two top trending cryptos that are exceptional. Both offer a winning combination of genuine utility in a key sector:
- Dash 2 Trade offers a comprehensive service offering in the key area of crypto analytics -which means giving crypto investors first-class intelligence on all aspects of the crypto sector.
- IMPT stakes it claim as one of the greenest cryptocurrencies by making it easy for consumers to offset their own carbon footprint using the blockchain to ensure the carbon credits they buy are above board.
1. Dash 2 Trade (D2T) – Revolutionary Crypto Analytics Platform in Presale Now
Dash 2 Trade is an exciting project, ripe for investment, benefitting from experienced and successful management. Launched by the team behind Learn 2 Trade – the crypto signals provider with 70,000 global users – Dash 2 Trade is a signals, intelligence and analytics platform in the second stage of its 9-stage presale.
Investors clearly believe that this project has enormous potential. Stage 1 of the Dash 2 Trade presale sold out in just three days. And there is just $1m of D2T tokens left available in stage 2 – after which the D2T price will go up again. This just further reinforces the idea that the cryptocurrency industry remains one of the best sectors to invest in right now.
Dash 2 Trade is rocking the presale market because it offers a revolutionary package of genuine utility. Dash 2 Trade provides a powerful suite of exclusive tools for investors to get the best market intelligence, refine their crypto trading strategy and track down the best emerging cryptos.
In today’s uncertain economic climate, investors need all the help they can get.
As we would expect from a cutting-edge analytics platform, Dash 2 Trade users will receive up-to-the-minute trading signals on the best crypto trading opportunities. What’s more, there are automated trading APIs to try out, as well as a back-tester facility to run trading strategies in sandbox mode without risking any funds.
The platform also offers pioneering on-chain data analytics to spot the most promising crypto on social media like Reddit and Twitter. And, when it comes to buying coins pre-launch, Dash 2 Trade is launching a proprietary scoring system – based on no less than one hundred factors to grade the best crypto presales on the market. Users can learn from other investors too using Dash 2 Trade’s social trading tools.
The earlier an investor buys in the Dash 2 Trade presale, the more they stand to make. That is because the price of the in-house D2T token rises with each stage of the presale.
|Price Stage||Amount Raised In Stage||Token Allocation|
- D2T is on sale now at stage 2 for $0.05.
- In stage 1 (now closed), D2T was on sale for $0.0476.
- At stage 9, D2T will only be available at $0.0662. That is a 39% increase in price from stage 1 – so it pays to get in early.
- Investors committing $100 in stage 1 would have landed themselves 2,100 D2T tokens; but $100 buys just 1,5100 tokens in stage 9.
There is a maximum supply of just 1 billion tokens. 70% are available during this presale phase. There is no vesting period.
There are great tokenomics built into the Dash 2 Trade project. The platform works on a subscription basis. Users can choose from 3 subscription models to access all the tools and services. And, critically, subscriptions must be paid using the D2T token – so that is likely to maintain upwards pressure on the D2T price.
How to Buy D2T
Investors can buy D2T in just four simple steps:
- Set up a MetaMask crypto wallet.
- Connect the wallet to the Dash 2 Trade presale platform.
- Purchase using Tether (USDT) or Ethereum (ETH).
- Receive D2T tokens when presale phase finishes.
For a full tutorial, dive into our guide on how to buy Dash 2 Trade tokens in 2023.
|Min Investment||1000 D2T|
|Purchase Methods||ETH, USDT|
|Blockchain||Ethereum (ERC-20 token)|
2. IMPT – Pioneering Blockchain-Based Carbon Offsetting Project in Presale Now
A further crypto-related gem in its key presale stages we have unearthed is carbon offsetting project IMPT.
With the climate crisis hitting the headlines regularly, many investors are researching how to buy carbon credits. What they discover is that carbon credit markets are generally open only to institutions and corporations.
IMPT brings carbon offsetting to regular investors. It is one of the best carbon offset programs because users have two routes to do their bit for the environment:
- Users may buy IMPT tokens on the platform and convert them into carbon credits. These credits are then minted into NFTs and can then be traded on the IMPT.io marketplace. Or investors can choose to ‘burn’ their carbon credit token as a way of offsetting their own carbon footprint- and receive a free NFT in return.
- Users can earn IMPT tokens as they do their regular shopping. IMPT has partnered with over 10,000 brands, including Microsoft, Amazon and LEGO. Consumers simply need to shop these brands and their IMPT balance will boost each time using the online IMPT widget.
The IMPT team has executed a stroke of genius in using the blockchain to manage carbon credits. And that is because – as their whitepaper points out – ‘blockchain allows companies to avoid fraud and double-counting – the fundamental problems of carbon trading.’
Investors on the hunt for eco-friendly cryptos have raced to buy IMPT, with stage 1 of the presale sold out a staggering four weeks ahead of schedule. $11 million has been raised in just three weeks.
The price of the IMPT token increases as the presale progresses:
- The IMPT token was valued at $0.018 in stage 1.
- During stage 2 – which is on right now – IMPT is valued at $0.023.
- Stage 3 will see coins on sale for $0.028, which is a 55% increase on stage 1.
With the IMPT presale having only three stages, investors will need to act soon or miss out on a golden opportunity. Stage 2 wraps up on January 31st, 2023 or when the allocation of 600,000 tokens is fully sold out.
How to Buy IMPT
Investors can get their hands IMPT in just four steps:
- Set up a MetaMask crypto wallet.
- Connect the wallet to the IMPT token presale platform.
- Purchase using Tether (USDT), Ethereum (ETH) or fiat currency with credit card.
- Receive IMPT tokens when the presale phase finishes.
|Min Investment||$30 recommended|
|Purchase Methods||ETH, USDT, fiat|
|Blockchain||Ethereum (ERC-20 token)|
3. Bitcoin Strategy ProFund (BTCFX) – Dedicated Crypto Mutual Fund Offering Wallet-free Bitcoin Exposure
Launched in 2021, the Bitcoin Strategy ProFund is one of the best crypto mutual funds for Bitcoin (BTC). BTCFX brings the reassurance of the traditional mutual fund format to the exciting growth opportunities of the top crypto coin.
With a market capitalization of $392 billion, Bitcoin is the bellweather of the $1 trillion crypto sector. 46 million Americans – that is approximately 1 in 5 of the adult population – have chosen to buy Bitcoin already. Buying into the Bitcoin Strategy Fund saves future investors the hassle of owning their crypto wallet and having to deal with a crypto exchange.
This cryptocurrency mutual fund tracks the Bloomberg Galaxy Bitcoin Index. Administered by top market analysts Bloomberg, this index ‘seeks to provide a representative proxy for the bitcoin market’ by measuring the performance of BTC vs. USD.
The Bitcoin Strategy ProFund invests in Bitcoin futures contracts, rather than investing directly in Bitcoin. Year-to-date, the fund is down by 57% – but this is to be expected given the harsh economic conditions prevailing globally. The best crypto winter tokens have fared better than Bitcoin.
- A net expense ratio of 1.46% applies, as well as a minimum investment of $1,000.
4. Short Bitcoin Strategy ProFund (BITIX) – The Best Cryptocurrency Mutual Fund for Shorting Bitcoin
ProFunds offer nine classes of mutual fund in all. This cryptocurrency mutual fund is one of their two Digital Asset ProFunds – with the other reviewed above.
Launched in June 2022, The Short Bitcoin Strategy ProFund follows the strategy of ProFunds’ ‘Inverse’ mutual funds. Rather than investing in Bitcoin rising in value, this crypto mutual fund bets that its value will fall.
- This fund tracks the CME Bitcoin Futures Index on an inverse basis at a gearing of x1.
- In three months, it has thus gained in value by 8.76%.
- A net expense ratio of 1.26% applies as well as a minimum investment of $1,000.
This fund does not actually directly short Bitcoin. Rather, as the fund managers explain, ‘the Fund seeks to benefit from decreases in the price of bitcoin futures contracts for a single day.’
However, this is arguably the best crypto mutual fund for effectively shorting Bitcoin. That’s because it gives a route for crypto-cynics to benefit from drops in price of the leading crypto coin by buying BITIX via an online brokerage account. Otherwise, shorting crypto is only available by using Contracts-For-Difference (CFDs) via the best CFD brokers – and CFDs are not currently legal in the US.
5. Bitwise 10 Crypto Index Fund (BITW) – Biggest Crypto Mutual Fund with Top 10 Crypto
With $409m of crypto assets under management, this is the largest of the cryptocurrency mutual funds. Launched in 2017 by San Francisco-based fund issuers Bitwise, it was also the first.
The fund aims to hold the ten largest crypto assets by market capitalization. This means that investors looking to invest in the next crypto to explode will be disappointed. By definition, BITW invests in cryptos that have already successfully exploded, and now dominate the crypto sector.
- Bitcoin (BTC) and Ethereum (ETH), for example, claim 61.5% and 29.3% of the portfolio between them – that is over 90%.
An expense ratio of 2.5% is charged by this fund. Compared to ETF expense ratios, this is expensive. But generally crypto mutual funds are more expensive than their counterparts that deal in stocks only.
How do investors then get value for money here? Why do we not learn how to invest in crypto ourselves and save ourselves the expense of signing up with a fund like this?
What crypto mutual funds offer that retail investors cannot match is 24/7 monitoring of the markets for ‘sudden events’. The fund makes no guarantees that it will pull out of a crypto that is suddenly collapsing. But it is reassuring for some investors that the fund manager is at least on top of the markets.
What’s more, this fund is rebalanced monthly to reflect the changing market capitalizations at the top of the crypto sector.
6. Grayscale Digital Large Cap Fund (GDLC) – A Diversified Crypto Mutual Fund Offering the Top 6 Biggest Cryptos
This fund is similar in constitution to BITW reviewed above. However, instead of focussing on the top ten crypto by market capitalization, it focusses on six. Why six? When the fund was launched in 2018, it covered ten crypto. But in June 2022 Grayscale removed Bitcoin Cash, Litecoin, Uniswap and Polkadot.
Currently the fund is invested in $204m of crypto assets. As with all reputable crypto mutual funds, the crypto assets are held in ‘cold’ storage. This means they are held offline apart from brief instances when transfers are made. Cold storage is a recognized top security feature. In this case, it is handled by the world’s third-biggest crypto exchange, Coinbase.
GDLC tracks what is know as a composite index. This means it is an index made up other indices: specifically, the individual Coindesk indices for each of the crypto that it covers.
This fund is down by 70% year-to-date. In this misfortune, it is not alone. In investing in either single major crypto or a basket of crypto barely getting into double figures, crypto mutual funds are at the mercy of the crypto sector as a whole. And, thanks to fears over inflation, interest rates and the Ukraine crisis, the crypto sector has been hit in 2022 just as badly as the best tech stocks on the NASDAQ exchange.
7. Wise Origin Bitcoin Index Fund – A Bitcoin Fund With $102m Raised by Accredited Investors
This is a Fidelity crypto mutual fund launched in August 2020. Within six months, it had raised $102m from a total of 83 wealthy private investors. Each investor was required to prove their accredited investor status as well as provide a minimum investment of $50,000.
The fund invests passively in Bitcoin and is managed by Fidelity Digital Assets Chief Strategist Peter Jubber.
With this fund being so new, little further information is known about it. Funds typically publicise a chart showing the progression of Net Asset Value over time, or the progression of an indicative investment of $10,000 over time. But this is not available with this fund, nor is information available from the Fidelity website. The same applies to its sister fund reviewed below.
8. Fidelity Ethereum Index Fund – A New Fidelity Crypto Mutual Fund for Ethereum Investors
This Fidelity Cryptocurrency mutual fund opened for new business on September 26th, 2022. By early October, it is reported to have raised approximately $5 million from private investors – according to documents filed with the US Securities and Exchange Commission.
The world’s second largest crypto Ethereum (ETH) is the single focus of this fund. It will track the Fidelity Ethereum Index PR benchmark, and invest in Ethereum through what Fidelity sources refer to as ‘passive, direct ownership.’
‘We have continued to see client demand for exposure to digital assets beyond Bitcoin,’ announced Fidelity.
The fund only accepts accredited investors who are willing to commit a minimum investment of $50,000.
What is a Crypto Mutual Fund?
A crypto mutual fund is simply a mutual fund that invests in crypto.
Investors who have researched how to invest in mutual funds will know that they are a form of collective investment vehicle. Investors pool funds, and a manager then invests those funds – either passively by following an index, or actively by making strategic stock selection decisions.
- With stock mutual funds, those funds are often invested in stocks.
- With a crypto mutual fund, the pooled funds are invested in crypto.
With the market at its very earliest stages of development, there is no such thing yet as a standard crypto mutual fund. But one aspect of this nascent market that does stand out is that the stock selection employed by crypto mutual funds is currently very different from conventional mutual funds:
- Stock mutual funds generally hold a basket of many stocks, sometimes numbering in the hundreds.
- Crypto mutual funds, on the other, hand either focus on a single crypto (like theBitcoin Strategy ProFund) or hold a basket of 10 or less crypto (like the Bitwise 10 Crypto Index Fund).
Why is There No Vanguard Crypto Mutual Fund?
Vanguard is the biggest provider of mutual funds in the world. Vanguard founder John Bogle invented the whole idea of index funds – and yet there is no Vanguard cryptocurrency mutual fund. Why not?
Vanguard Chief Information Officer Greg Davis explained in May 2022 that, ‘‘although we see merit in supporting the technology behind cryptocurrency, we feel it’s best to stick to the investing principles that have made Vanguard a reliable choice for investors.’
It seems from this announcement that even the best cryptos to trade are not ‘on brand’ for steady Vanguard. Meanwhile, rival Fidelity is opting to get behind crypto.
Fidelity launched its crypto-focused platform Fidelity Digital Assets back in 2018 and says it, ‘is proud to be an early mover in this space and will continue to build products that support the rapidly-evolving digital asset ecosystem and enable broader adoption.’
- One Fidelity Cryptocurrency mutual fund is the Fidelity Ethereum Index Fund (launched in 2022) to follow their Wise Origin Bitcoin Index Fund (launched in 2020).
Are Crypto Mutual Funds a Good Investment?
As institutional confidence grows in the crypto sector, it is likely that crypto mutual funds will become more adventurous in their asset selection. As it stands, however, the average crypto mutual fund invests in less than ten large cap crypto assets. This makes the vehicle unimpressive if the investor is looking to minimize risk through diversification. Crypto presales, by contrast, look a lot more inviting.
However, crypto mutual funds are generally not without three major advantages:
1. Crypto Wallet Not Required
Some crypto mutual funds make a specific selling point of the fact that, with a fund, investors do not need to directly buy crypto to gain exposure to it.
Many investors are happy to get themselves one of the many free crypto wallets available. But many investors are not comfortable with doing this – for two reasons:
Accidental Loss of Crypto
Using a crypto wallet requires remembering a variety of security information. It can also involve storing access information on the hard drive of one’s own computer or a USB stick. In either case, this data can get lost, with the result that the contents of the wallet are lost forever.
- This happened famously to San Francisco software developer Stefan Thomas in 2021, who forgot the password to his USB fortune of 7,002 Bitcoins – which would today be worth over $142 million.
Theft of Crypto
Despite rapidly-developing security measures coming as standard on crypto wallets, the truth is that wallets get hacked. In this case, the contents are rarely retrieved – even though the blockchain records every single movement of cryptos. The issue is that the authorities may know where the stolen crypto has gone, but they do not know who owns its destination wallet.
- As recently as September, 2022, an ongoing attack on blockchain Solana has drained $5.2m from approximately 8,000 crypto wallets (according to crypto analytics firm Elliptic).
Security issues notwithstanding, using a crypto wallet can be plain intimidating for many. Having an institution do the crypto trading is, by comparison, reassuring for many investors.
2. Dealing With a Crypto Exchange Not Required
As with crypto wallets, some investors are not interested in using even the best cryptocurrency exchanges.
Crypto exchanges are easily accessible online and allow investors to directly invest in an often bewildering array of crypto. The process to use them is simple enough: investors sign up, supply a few personal details as well as ID, get verified, deposit funds and get trading. But crypto exchanges share the same issues as wallets: access data can easily get lost, and exchanges can get hacked.
According to leading analytics firm Chainalysis, a staggering $14bn of crypto was stolen during 2021. Crypto mutual funds allow retail investors to sidestep the whole issue because crypto funds are always insured.
3. Let the Experts Monitor Volatility
Cryptocurrency is recognized as one of the most volatile financial assets. The advantage of this is that prices can move upwards extremely fast – just as meme cryptos Dogecoin and Shiba Inu rose to prominence in 2021. The disadvantage of volatility is that crypto prices can likewise fall very quickly.
- In May 2022, crypto Luna fell from a price of more than $80 at the beginning of the month to a fraction of a cent by May 18th. This was down to the crisis enveloping its stablecoin fellow TerraUSD.
The advantage of investing in crypto mutual funds is that the issuing company will have monitoring systems in place to react to disastrous collapses in price. Investors may still lose significant sums, but at least they will not be tied to checking their crypto wallet every day, looking out for potential catastrophes.
Why Crypto Presales are Better than Crypto Mutual Funds
As far as growth potential goes, crypto mutual funds offer nowhere near the possibilities of crypto presales.
By definition, crypto presales focus on new tokens that have their entire future ahead of them. The crypto which an investor supports at the ground floor may be the next Bitcoin.
But if an investor commits to a mutual fund, then only established crypto – like Bitcoin, Ethereum and other top 10 crypto by market capitalization – are available. Certainly, this makes the growth prospects of a crypto mutual fund far more exciting than those of a conventional mutual fund that invests in stocks. But, in crypto terms, crypto presales is where the real action is at.
Above we have delved into the growing sector of crypto mutual funds. We have observed that they are few to be had as yet. Some – like the Fidelity Ethereum Index Fund – are so new that very little information is available about them.
Crypto mutual funds have a bright future. But until the market gains some momentum, investors looking for the most profitable cryptos are likely to choose crypto presales instead.
We have highlighted two brand-new cryptos that investors can buy in their presale stages right now:
- D2T, the token for powerful new analytics platform Dash 2 Trade.
- IMPT, the token for pioneering carbon offset platform IMPT.io.
Dash 2 Trade - New Gate.io Listing
Dash 2 Trade - New Gate.io Listing