Bitcoin price beater? Investors find a new gold mine

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When it comes to get-rich-quick assets, Bitcoin price gains are hard to beat. But this year, investors are still finding ETFs and related funds that even surpass the feel of cryptocurrency.

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Bitcoin is the most popular digital currency, with a market value of $ 916.6 billion, according to Coinbase. And he’s also an incredible performer: The price of Bitcoin has risen by over 300% in the past 12 months.

But this year, Bitcoin’s price gain is facing serious competition from other funds and ETFs betting on even hotter trends. Rival cryptocurrency Ethereum, bulk shipping, and traditional energy ETFs as well as, ironically, those who invest in energy offsets outperform Bitcoin.

“Bitcoin rallies as the dollar falls… but cryptocurrency traders have laser eyes on Ethereum,” said Edward Moya, senior market analyst at Oanda, a currency tracking firm. “Ethereum is all the buzz in the cryptoversy.”

Bitcoin price gains set the bar high

It is not easy for ETF investors to beat the price gains of Bitcoin. But they find new gold mines.

For example, Bitcoin is losing ground to Grayscale Ethereum Classic Trust (ETCG) and Grayscale Ethereum Trust (ETH). Both funds easily outperform Grayscale Bitcoin Trust’s (GBTC) one-year returns, increasing by over 800% and nearly 600% respectively.

Grayscale Bitcoin Trust is an investment fund that tracks the price movement of Bitcoin. The fund, which is technically not an ETF, has grown by around 300% over the past 12 months, ranking it 5th among all ETFs and related funds by Morningstar.

And this year alone, Grayscale Ethereum Classic has increased by almost 1000% and Ethereum Trust has increased by 343%. The funds have different variations of the Ethereum cryptocurrency, which explains the difference in their earnings, says Craig Salm, vice president of legal at Grayscale.

Both leave Grayscale Bitcoin Trust in the dust. The Bitcoin ETF is up over 60% this year. Its good. But it only ranks 26th in the Morningstar ETF universe. Well behind Ethereum.

Grayscale, however, is still working to convert all of those cryptocurrency funds into full ETFs, Salm says. “We are 100% committed to converting GBTC and our other investment products into ETFs,” he said. Grayscale hired David LaValle to lead the effort.

Shipping: Hotter Than Bitcoin Price Gains?

But don’t think that only high-tech, intangible digital currencies can exceed the price of Bitcoin this year. Another big winner is solidly something you can see and touch.

Breakwave Dry Bulk Shipping (BDRY) ETF is recovering due to oversized shipping demand and pricing power for transporting physical goods around the world.

The ETF is up over 255% this year, ahead of the Grayscale Bitcoin Trust’s gain during this time. The ETF tracks the charter rate for the shipment of commodities like iron ore, coal and grain using futures contracts.

Energy and green ETFs activate it too

The rise in the price of Bitcoin may show a demand for a coveted new age product. But traditional commodity assets are also proving lucrative.

And in another interesting twist for ETF investors this year, there are plenty of ways to make money both from soaring energy prices, but also offsets to help limit its use.

VelocityShares 3x Long Natural Gas ETN (UGAZF), for example, uses leverage to amplify the movements of the underlying commodity. This year alone, the fund has grown by over 250%. The price of natural gas based on Nymex contracts is up more than 70% from its 52-week low. Likewise, ProShares Ultra Bloomberg Natural Gas (BOIL) is also up sharply, growing by over 130% this year.

And here’s the twist. Investors, while scoring big on energy funds, are hitting big with funds designed to help mitigate the release of planet-warming carbon into the atmosphere through traditional energy.

The iPath Global Carbon ETF (GRNTF), for example, has risen nearly 90% this year, enough to offset the rise in Bitcoin prices. Carbon offsets are gaining attention as many countries aim to achieve carbon neutrality by 2050. This ETF tracks the Barclays Global Carbon Index. It uses emission credit futures that companies trade on the European Climate Exchange.

So while Bitcoin is indeed a sensation, it’s not the only way to get big results from funds this year.

Better than Bitcoin?

Some ETFs, funds outperforming Bitcoin in 2021 so far

Name Ticker YTD Total Return% Total Return%, 12 months Grayscale Ethereum Classic Trust (ETCG) 997.8% 810.0% Grayscale Ethereum Trust (ETHE) 343.7 574.9 Breakwave Dry Bulk Shipping (BDRY) 255.5 223 , 0 VelocityShares 3x Long Natural Gas ETN (UGAZF) 252.9 -30.0 Direxion Daily Retail Bull 3X (RETL) 150.6 354.5 ProShares Ultra Bloomberg Natural Gas (BOIL) 135.8 5.2 MicroSector US Big Banks 3X Lvrgd ETN (BNKU) 122.9 336.2 Direxion Daily MSCI Real Est Bull 3X (DRN) 105.5 134.7 iPath Global Carbon ETN (GRNTF) 89.0 108.8 iPath Series B Carbon ETN (GRN) 85 , 3,103.8 Grayscale Bitcoin Trust * (GBTC) 62.8 298.2 Sources: IBD, Morningstar Direct, S&P Global Market Intelligence through August 31 * – shown for comparison Follow Matt Krantz on Twitter @mattkrantz

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