GSR Crypto Core3 ETF (BESO)
The GSR Crypto Core3 ETF holds the three largest cryptocurrencies by market capitalization: Bitcoin, Ethereum, and BNB. It provides investors with a single, liquid entry point into cryptocurrency exposure through a traditional exchange-traded fund that trades on stock markets rather than requiring direct custody of digital assets. The fund weights its holdings by the market value of each token, meaning shifts in which token is largest drive proportional changes in the fund’s composition over time.
The three holdings explained
Bitcoin is the original and oldest cryptocurrency, launched in 2009 as a peer-to-peer electronic cash system. It has no issuer or central authority and operates through a distributed network of computers that validate transactions. Its total supply is capped at 21 million coins, a feature that draws comparisons to scarce commodities.
Ethereum is a blockchain designed to support programmable applications and contracts, not just payments. Launched in 2015, it powers most of what the cryptocurrency world calls decentralized finance, where lending, trading, and other financial instruments run on transparent code rather than through traditional intermediaries. The Ethereum token is the fuel required to execute transactions and contracts on the network.
BNB began as the native token of Binance, the world’s largest cryptocurrency exchange by trading volume. Over time, Binance expanded BNB into its own blockchain ecosystem—the BNB Chain—where BNB functions similarly to Ethereum’s token, powering transactions and smart contracts. BNB is also used to discount trading fees on Binance’s exchange, creating a functional reason for traders to hold it beyond speculation.
The fund rebalances periodically to maintain weights that reflect market capitalization, which means these proportions shift as the relative values of the three tokens change. Bitcoin and Ethereum typically dominate the fund’s composition, given their larger market values, while BNB makes up a smaller but meaningful slice.
Structure and custody
The fund is structured as an exchange-traded trust that holds the actual cryptocurrency tokens, not futures or derivatives. This direct ownership means the fund owns real Bitcoin, Ethereum, and BNB, held in custody arrangements designed to balance security with operational efficiency. The fund trades on stock exchanges throughout the trading day, giving investors intraday pricing and the ability to buy or sell at market rates without using cryptocurrency exchanges or managing private keys.
The expense ratio covers fund management, custodial fees, and trading costs. Cryptocurrency-focused ETFs typically carry higher expense ratios than broad equity index funds, reflecting the specialized infrastructure required to securely hold and manage digital assets.
Risks inherent in cryptocurrency
Cryptocurrency price volatility far exceeds that of traditional equities. Bitcoin, Ethereum, and BNB routinely move ten to twenty percent in a single day with no major news catalyst, a swing magnitude that most stock investors encounter rarely. This volatility reflects the relatively young and speculative nature of crypto markets, where sentiment and regulatory developments can shift sharply.
Regulatory risk is material. Government agencies worldwide are still developing rules around cryptocurrency custody, taxation, and trading. Changes in regulation—whether permissive or restrictive—can meaningfully alter the attractiveness or accessibility of these tokens.
The history of cryptocurrency also includes significant security breaches at exchanges and custodians, and the fund’s prospectus details how tokens are stored and insured. While institutional custody has improved substantially, this remains a category-level risk.
Who invests in this fund and how to research it
The fund appeals to investors convinced that Bitcoin, Ethereum, and BNB represent the most foundational digital assets and who wish to hold them in a traditional brokerage account with institutional custody, tax reporting, and ease of trading. It serves those seeking cryptocurrency exposure without managing private keys or transacting on spot exchanges.
Research should begin with the fund’s prospectus and fact sheet, which detail current holdings, fees, and custody arrangements. The fund’s liquidity and bid-ask spread should be checked through a broker; crypto ETFs have typically maintained reliable volume, though this can fluctuate with market conditions. Understanding the use cases and competitive positioning of each token independently is essential before investing.