Deepika- Crypto-based ETFs have the potential to become the next big thing for investors.
- A few projects are making this concept quite popular and making crypto more scalable.
Exchange-Traded Funds (ETFs) have emerged as one of the most promising investment options. Many analysts equate it with mutual funds due to the similarity in their nature. Like mutual funds, ETFs also get linked to some commodity, stock, bond, currency, industry, or cryptocurrency. Investors can invest in them and get returns in the long term as well as the short term.
In the crypto space, quite a few ETFs have gained popularity due to some distinct attributes. These funds have proven their worth due to various factors. They have gained the attention of investors and brought liquidity as well. At the same time, they shed light on new technologies. Let’s dig into some of these ETFs that have garnered praise from crypto investors.
Crypto ETFs That Are Worth Investors’ Attention
While pushing the technology forward, these exchange-traded funds bring new earning prospects to the front.
- Amplify Transformational Data Sharing ETF (BLOK)
It was the first exchange-traded fund dedicated to blockchain technology launched back in 2018. Being a one-of-its-kind initiative, this project impressed investors. It become one of the crypto instruments that upped the liquidity in the markets. The developers and stakeholders manage it actively using decentralized resources. It also supported new blockchain applications and helped them get audiences.
- Bitwise Crypto Industry Innovators ETF (BITQ)
Bitwise is a passively-managed fund. It tracks the performance of 30 stocks of companies that invested in crypto markets. Those companies have invested in crypto mining, decentralized financial services, and mining equipment supplies. It maintains the Bitwise Crypto Innovator 30 Index and chooses companies that have a profitable profile. The firms included in the index makeup 85% of BITQ’s holdings.
- Siren Nasdaq NexGen Economy ETF (BLCN)
BLCN follows the Nasdaq Blockchain Economy Index. It comprises companies that develop blockchain or use it in their operations. At the same time, it offers a diverse portfolio of stocks belonging to the crypto sphere. This passively-managed fund was also launched in 2018. Being one of the early entrants, BLCN also commands great attention from investors.
- Global X Blockchain ETF (BKCH)
BKCH also focuses on the adoption of blockchain technology. It has enlisted companies that invested in the development of blockchain apps, crypto exchanges, and mining. The benchmark is called Solactive Blockchain Index. With a focus on development and adaptation, the ETF provides reliable support to companies. The enrolled firms do get an upper hand when they more funds from investors.
- VanEck Digital Transformation ETF (DAPP)
Launched in 2021, DAPP is also a passively managed fund. It tracks the performance of companies that have invested in cryptocurrency and blockchain. Its benchmark is MVIS Global Digital Assets Equity Index which has good exposure in international markets. In 2023, the ETF reported that 34% of its holdings belong to entities based out of the US.
Conclusion
In the crypto space, ETFs have left an indelible mark. They have actually shown how we can use the technology to generate revenue of various levels. With large-scale exposure and lots of other advantages, these investment options extend the horizon of cryptocurrency. They do a great job of making crypto as prevalent as equity, commodities, currency, etc.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in cryptocurrencies and NFTs comes with a risk of financial loss.
