Best Blockchain ETF

The blockchain works as a ledger where transactions are recorded digitally. Once posted, these transactions are secure and unalterable, and data is stored as linked data blocks. While for investors looking to capitalize on this technology, the best blockchain ETF (exchange-traded funds) provides an easy path.

However, since blockchain is directly connected highly volatile crypto market, thus many investors shy from putting their eggs in this basket. Contrarily, blockchain differs from cryptocurrency, and blockchain ETFs only invest in compliant companies.

There are numerous ETFs currently operating in the market. However, selecting the best blockchain ETF is critical to yielding the highest returns from investment.

Since it is an evolving idea to guide your investment in the right basket, we have reviewed blockchain ETFs and filtered out the best ones. Even so, our benchmark for the best blockchain ETF is total assets under management (AUM).

So, let’s dive in to explore the best blockchain ETFs.

• Bitwise

The Bitwise Crypto Industry Innovators (BITQ) ETFs have passively managed funds. Therefore it keeps a record of the performance of the Bitwise Crypto Innovators 30 Index. However a total of 30 stocks of companies are pooled from the cryptocurrency market. 

Bitwise takes cryptocurrencies from various indexes, not only including mining equipment, crypto mining outfits, but also financial services companies.

So, Bitwise only select those companies in the Bitwise Crypto Innovators 30 index, which generate 75% of revenues from cryptos. In addition, companies with 75% of net holdings in Bitcoin are also included in the BITQ.

BITQ’s top three holdings, as of August 2022 are;

Key Features:

• Global X Blockchain RTF (BKCH)

The Global X Blockchain ETF (BKCH) is a passively managed fund. It invests in companies of course that extract benefits from adopting blockchain technology. Thus it usually involves crypto exchanges, mining companies, and companies developing new applications.

Even so, Global X holds a portfolio of 25 to 40 pure-play blockchains. Thus the top three holdings of Global X as of August 2022 were:

Key Features:

• Amplify Transformational Data Sharing ETF (BLOK)

BLOK was the first exchange-traded fund that invested in blockchain technology. So, companies involved in developing or using blockchain technologies are on the target list of the BLOK.

In addition, it focuses on companies developing new blockchains or related applications. However the fund comprises 13% venture, 16% crypto miners and 37% transactional cryptos.

Since BLOK’s top three holdings as of August 2022 are;

Key Features:

• Siren Nasdaq NexGen Economy ETF (BLCN)

BLCN was launched in 2018 as a passively managed fund. Therefore BLCN invests in stocks of companies developing and using blockchain technology for their businesses.

Undoubtedly BLCN has pooled some big names in the blockchain economy. It currently owns 63 stocks; the diversification is so much that the top 10 holdings do not accumulate for more than 4%.

As a result of August 2022, the top three holdings of the BLCN were;

Key Features:

• VanEck Digital Transformation ETF (DAPP)

Launched in 2021, DAPP is a passively managed fund. MVIS Global Digital Equity Index holds not only stocks of companies active in blockchain but also cryptocurrency; DAPP tracks the MVIS.

Certainly it holds 24 stocks with a perfect investment split into financial and tech companies. Moreover one of the significant pluses of DAPP is that it is a global fund and has exposure to international stocks. Furthermore, 31% of its holdings are non-U.S based companies. 

As a result of August 2022, DAPP’s top three holdings were;

Key Features:

• Fidelity Crypto Industry and Digital Payments ETF (FDIG)

FDIG recently launched in April 2022. DFIG is a benchmark to the Fidelity Crypto Industry and Digital Payment Index. So, the index follows the performance of most volatile cryptocurrencies in the global environment, blockchains, and digital payment companies.

FDIG currently has 35 stocks at its disposal, as well as with a division of 33% in financial services and 63% in the tech industry. For this reason the division depicts FDIG’s inclination towards the crypto industry.

As of August 2022, its top three holdings were;

Key Features:

• First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT)

CRPT was launched in 2021 as an active investing strategy. So, it aims to invest 80% of its assets in companies related to the cryptocurrency ecosystem. As a result of CRPT’s owners are vocal about their mission to bring in more investment in the cryptocurrency portfolio. 

Thus CRPT currently holds 30 stocks, and these are saturated into the top 10 holdings. As of August 2022, CRPT’s top three holdings are;

Key Features:

Frequently Asked Questions

What are blockchain ETFs?

Blockchain ETFs (exchange-traded funds) are funds that own shares of companies that are developing blockchain technology. Furthermore the purpose of ETFs is to diversify and macro-invest in cryptocurrency economics. Therefore ETFs operate much like usual mutual funds.

What are the advantages of investing in ETFs?

Since cryptocurrencies are highly volatile, many companies have developed a new avenue of investment in the form of ETF. The significant benefits of ETFs include the following;

What are the best blockchain ETF?

Here are a few of the best blockchain ETFs;

What is the largest ETF?

Currently, the largest ETF is the ProShares Bitcoin Strategy ETF BITO, with $690.77 million.

Parting Thoughts

Cryptocurrencies have seen many unusual ups and down ever since their inception. Thus, high volatility is hindering new investments.

Therefore, to a diverse investment portfolio in the crypto environment – a new strategy is surfacing known as ETF. It works as any other mutual fund. ETFs are gaining popularity daily as they offer low operation costs coupled with low risk.

To further ease your decision, our guide presents the best blockchain ETF. So, we covered their details and essential features in more information.

We hope it was helpful. Please leave your feedback and let us know about your experience with blockchain ETFs.