Whether you’re just looking to dip your toe into the world of crypto currencies or you’re a veteran investor interested in investing in the technology, there are many ETFs to choose from. These ETFs are great because they offer a safe way to invest in a specific sector, which is especially important for investors who want to take a more long-term approach to investing in the world of blockchain.
Amplify ETF
Amplify ETF is a company that is known for its focus on a range of themes, including blockchain. Their mission is to diversify investors’ portfolios, which is why they recently launched five new funds.
The first of these funds is the Amplify ETF, which owns stocks of companies involved in cryptocurrency and blockchain. This fund is actively managed, meaning that its portfolio managers select the stocks that they think will perform well. The fund has nearly $5 billion in assets under management.
Another fund that was launched by Amplify is the Amplify Lithium & Battery Technology ETF. This fund owns electric vehicle companies and battery tech companies. It has gained close to 20 percent year to date through 12/10/21.
One of the best things about the Amplify ETF is the wide range of holdings. The fund includes a number of large companies, like IBM, PayPal, and Nvidia. It also holds companies that are a part of the digital economy, such as Coinbase and Square.
Reality Shares Nasdaq Blockchain Economy Index ETF
Reality Shares and Nasdaq have partnered to launch the Reality Shares Nasdaq Blockchain Economy Index. This is a smart-beta index that tracks the performance of leading global blockchain companies.
The Index measures the financial returns of 50 to 100 of the leading Blockchain Companies, with a market cap of over $200 million. The Index is reconstituted twice a year in March and September. Each Benchmark Index is constructed using a rules-based methodology.
The Reality Shares Nasdaq Blockchain Economy ETF is a passive, exchange-traded fund (ETF) that tracks the index. The fund is designed for long-term investors who are interested in the future of the Internet of Things (IoT) and digital currencies. The ETF is sponsored by Reality Shares and is available only to accredited investors.
Capital Link Global Fintech Leaders ETF
The Capital Link Global Fintech Leaders ETF is an exchange-traded fund with a focus on the aforementioned aforementioned ft. It’s a relatively new entrant into the ETF fray, albeit one with a surprisingly large market cap. The ETF was born out of a collaboration between SEI Investments Distribution Co, the largest distributor of ETFs in the world and Capital Link, a San Francisco-based investment firm that is best known for its high-quality indexes.
The ETF is not cheap, if you can even call it that, but the price is a lot less than it would have been if you bought the stocks individually. The ETF’s fees are in the range of one percent of the fund’s assets, which is about as much as you’d pay for an annuity in the U.S.
Schwab Crypto Thematic ETF
The new Schwab Crypto Thematic ETF is a unique offering in the crowded market of ETFs focused on the crypto industry. It is a fund which tracks a proprietary index designed to deliver global exposure to the crypto sector. Using both human insight and artificial intelligence, the fund is able to find companies that can benefit from digital assets, while also avoiding the pitfalls of the burgeoning space.
The new ETF carries a small, but not insignificant, annual fee of 0.30%. As of September 10, the ETF has already seen a 5% increase since its launch. While the product does not invest in any particular cryptocurrencies, it does include companies that develop and implement blockchain applications.
Schwab’s index is designed to find the 50 stocks with the strongest connections to the crypto industry. It uses a proprietary methodology, including a natural language algorithm which may identify companies that would not have been included in the index if publicly available data had not used key words analyzed by the NL algorithm.
Global X Blockchain ETF
One of the best ways to get started in the crypto and blockchain space is with an exchange traded fund, or ETF. These funds allow investors to buy and sell shares of companies involved in the technology at market prices.
There are several ETFs that target the global blockchain industry. The BKCH Exchange Traded Fund is an example. The fund tracks a market-cap-weighted index of global blockchain companies. It also screens firms involved in digital asset integration and mining. The company uses a proprietary NLP algorithm to select its holdings.
The fund has an expense ratio of 0.50%. Its portfolio is made up of 25 constituents. The top holdings include Coinbase, Accenture, PayPal Holdings, and IBM. The fund has underperformed the broader crypto and blockchain sectors.
