But cryptocurrencies, or crypto for short, have rapidly become mainstream, with fluctuations particularly in Bitcoin reported on in the mainstream business press alongside the price of gold and major shares.

Crypto comes into the mainstream

Institutions have increasingly been willing to invest in cryptocurrencies, while retail investors are also investing heavily. New research from CoreData shows that 12% of adult Australians now have crypto investments, making it the third most popular investment, behind Australian shares and cash.

It also means that more Australians are now invested in crypto than in the real estate market (excluding the principal place of residence), with just 6% of investors putting money into bricks and mortar – a big swing from last year when real estate came in third.

The CoreData white paper, released recently, states that cryptocurrencies are increasingly becoming mainstream.

Once viewed as a speculative niche, CoreData's research finds crypto assets like Bitcoin and Ethereum are increasingly being integrated into the portfolios of everyday Australians. While cryptocurrencies remain a relatively young asset class, they are now over a decade on into their maturity, and market participants increasingly recognise them as a lasting fixture of the financial landscape. This shift is evident in the rise of institutional investment seen globally in recent years, as leading asset managers, pension funds, and banks expand their exposure — not only through direct holdings, but also via custody solutions, tokenised assets, and blockchain-enabled financial services.

Digital Wealth Group founder Sydel Sierra said she wasn't surprised by the findings of the CoreData research.

Ms Sierra added:

It's just too hard to argue with the returns. Bitcoin's compound annual growth rate over the past year is 75%; to put that in perspective, S&P 500's return in that same period was 15%.

ETFs lead to easy investing

One of the key drivers of cryptocurrency growth, the report states, is the ability for investors to purchase crypto exchange-traded funds (ETFs), rather than having to buy the assets directly via a crypto exchange.

Following ETF approvals in the U.S. and Europe, similar products such as the Global X 21Shares Bitcoin and Ethereum ETFs gained momentum in Australia, attracting interest from self-managed super fund (SMSF) trustees and financial advisers seeking new avenues for diversification.

Bitcoin ETFs available on the ASX include the aforementioned Global X 21Shares Bitcoin ETF (ASX: EBTC), the VanEck Bitcoin ETF (ASX: VBTC), and the Monochrome Bitcoin ETF (ASX: IBTC).

Like other ETFs, the provider charges a management fee, with the Global X ETF charging a fee of 0.45% for example.

That ETF holds Bitcoin on the Coinbase exchange and, as of the end of September this year, had $256.5 million invested.

The CoreData white paper says Bitcoin is the most favoured cryptocurrency, held by 78% of Australian crypto investors, which is not surprising given it has developed over time into a "trusted store of value''.

Other popular crypto investments include Ethereum, Ripple (CRYPTO: XRP), and Solana (CRYPTO: SOL).

As the report says:

For many, trust in Bitcoin stems not only from its historical performance and longevity, but also from the belief that it is more decentralised than other cryptocurrencies. Bitcoin's fixed supply of 21 million coins has also earned it comparisons to gold, a trait known as 'digital scarcity'. These distinctions have led many to argue that Bitcoin belongs in a class of its own.

The post How to join the more than 10% of Aussies now invested in cryptocurrencies appeared first on The Motley Fool Australia.

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. 

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.

The post Dip your toes into cryptocurrency with these 2 ASX ETFs appeared first on The Motley Fool Australia.

These ETFs have outperformed the broader market this year, and their gains reveal some interesting insights into investor preferences right now.

Here's a closer look at the top-performing ASX ETFs in the ten months to October 31.

Bitcoin, gold, tech lead the pack

As a reminder, ETFs offer a low-cost, transparent, and effective way to tap into global trends. Given the world we live in, these trends can shift from year to year.

According to The Australian Financial Review, the Global X 21Shares Bitcoin ETF (CXA: EBTC) was the top-performing fund until the end of October, having climbed 72% by then.

Renewed interest in Bitcoin has seen the cryptocurrency bounce back in a big way this year, pulling this ETF to the top of the leaderboard.

At the time of writing, it is up 162% this year to date, slightly ahead of the Bitcoin price.

But the 21 Shares Bitcoin ETF trades on the Cboe Australia, according to The Motley Fool's Mitchell Lawler.

On the ASX, precious metals were spearing through the pack.

The Global X Physical Silver ETF (ASX: ETPMAG) had climbed 46.5% by October's end. This was driven by a sharp gain in silver early in the year, running from lows of US$21 per ounce in January to highs of US$34.74 per ounce in October.

Meanwhile, the Global X Physical Gold ETF (ASX: GOLD) was up nearly 38%. According to the World Gold Council, gold has been one of the best-performing asset classes this year and is realising one of its best years on record.

The ASX ETF set a new all-time high of $39.28 per share last week, according to The Motley Fool's Sebastian Bowen.

Finally, tech-focused funds saw strong gains due to tailwinds from artificial intelligence (AI) and US interest rate cuts.

The Global X FANG+ ETF (ASX: FANG), which tracks a basket of US-based global tech heavyweights, had risen nearly 39% by October.

It is now up nearly 60% at the time of publication, outpacing the S&P/ASX All Technology Index (ASX: XTX)'s 43% return.

What's the outlook for ASX ETFs in 2025?

Looking ahead, the question is where are the opportunities in ASX ETFs to invest in? There's also the question of investment flows.

At the same time, ETFs have become a more popular choice for investor portfolios than two years ago.

According to the State Street 2024 ETF Impact Survey, ETFs are "more popular among investors" in 2024 than in 2022.

The Australian data is interesting. Back in 2022, only 27% of Aussie respondents surveyed said they used ETFs in their portfolios

By April 2024, this had risen to 45% of those surveyed.

The survey findings also showed that millennials are the most likely to have ASX ETFs in their portfolios.

Foolish takeaway

These ASX ETFs have outperformed in 2024 and were the top performers up until October 31. Since then, they have held on to their gains.

What's interesting are the trends in precious metals and cryptocurrency this year. But that's not surprising, given the price action of these assets in 2024. On the other hand, tech shares have historically provided strong returns for investors. Will these trends continue in 2025? Time will tell.

The post What are the top-performing ASX ETFs so far in 2024? appeared first on The Motley Fool Australia.