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Exchange-traded funds linked to shares of publicly listed blockchain firms have significantly enhanced their returns in 2023. Experts predict further growth for blockchain ETFs following the authorization of spot Bitcoin and Ethereum ETFs in the United States.
As per VettaFi data, several exchange-traded funds associated with the blockchain and cryptocurrency sectors have managed to considerably boost their volumes and amplify their investment returns this year.
The leading fund with a 218.35% year-to-date increase was the VanEck Digital Transformation ETF (DAPP). Launched in April 2021, it tracks the price and performance of the MVIS Global Digital Assets Equity Index, which reflects the performance of prominent crypto firms such as Coinbase, MicroStrategy, and Block. DAPP’s growth was largely driven by the stock prices of Coinbase and MicroStrategy, which have risen by 321% and 300%, respectively, since the start of the year.
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Other blockchain ETFs that recorded significant gains this year include:
- Global X Blockchain ETF (BKCH). This fund tracks companies involved in hardware for mining and storing digital assets, with shares up 209.46% year-to-date.
- Bitwise Crypto Industry Innovators ETF (BITQ). It follows an index of 30 cryptocurrency firms globally, with a year-to-date increase of 196.17%.
- Global X Blockchain & Bitcoin Strategy ETF (BITS). This fund invests in equity securities of blockchain companies and long positions in BTC futures, achieving a year-to-date return of 185.45%.
- iShares Blockchain and Tech ETF (IBLC). Tracking an index of global firms engaged in blockchain and cryptographic technologies, this fund has gained 159.75% year-to-date, reaching an all-time high of $8.4 in November.
- First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT). This fund focuses on companies in the cryptocurrency mining sector, including equipment providers and commercial crypto firms, with a year-to-date return of 151.62%.
- Fidelity Crypto Industry and Digital Payments ETF (FDIG). This exchange-traded fund tracks an index of global stocks involved in crypto payment processing, with shares up 129.67% year-to-date.
Nevertheless, despite a prosperous year, the performance of blockchain ETFs remains significantly below their all-time highs. According to TradingView, as of 13:00 (GMT+2) on December 15, the price of DAPP stands at $8.79, which is 77% lower than its peak in November 2021. A similar trend is observed for BKCH and BITQ, which are currently 58% below their highest levels.
The primary factor contributing to the rising interest in blockchain ETFs is the increasing adoption of cryptocurrency initiatives and the integration of blockchain at the governmental level. Analysts also link the growth of these exchange-traded funds to the expected approval of spot Bitcoin and Ethereum ETFs by U.S. regulators.
Сообщение Blockchain ETFs Get More Popular Amid Rising Returns появились сначала на CoinsPaid Media.
