What is blockchain technology?
Blockchain technology extends far beyond its role as the foundation for cryptocurrencies. It marks a groundbreaking evolution in how data is gathered, stored, and shared worldwide. By distributing data across a decentralized network, blockchain provides an environment that is both highly secure and resistant to tampering.
While blockchain powers digital currencies like Bitcoin and Ethereum, its potential applications reach into industries like healthcare, real estate, and beyond, where transparency and security are critical. Its greatest strength lies in ensuring trust and reducing fraud, positioning blockchain as a transformative technology for the future of secure digital transactions.
What are blockchain ETFs?
Blockchain ETFs are investment funds traded on stock exchanges that primarily invest in companies involved in developing and implementing blockchain technologies. Unlike direct cryptocurrency investments, these ETFs offer a more stable investment into the technology underlying cryptocurrencies. They provide exposure to various sectors, including technology, finance, and others, expanding the reach and impact of blockchain.
These funds are crucial for investors seeking exposure to blockchain technology’s potential without the high volatility associated with crypto. By investing in a range of companies, from startups to established tech firms, blockchain ETFs allow investors to benefit from the sector’s growth while mitigating the risks of single-stock exposure.
Learn more about spot ETFs and how they expose investors to the real-time price of assets like Bitcoin and Ethereum.
How to invest in blockchain
When considering an investment in blockchain, blockchain ETFs represent a prudent choice due to their diversified nature. These ETFs empower investors to invest in a basket of companies that are either directly using or supporting the development of blockchain technology, thereby reducing the risk compared to investing in individual cryptocurrencies or stocks.
To start investing, one should look at the fund’s performance history, the sectors it covers, its assets under management (AUM), and its expense ratio. Investors should also consider how these ETFs fit into their broader investment strategy, focusing on long-term growth and technological advancements in the blockchain sector.
Looking to calculate your crypto profit? Try our free crypto profit calculator.
Best blockchain ETFs
Here is our list of the best blockchain ETFs available, with comprehensive analysis to help you determine which ETF best aligns with your investment strategy. Whether you’re looking for active management or prefer a more passive approach, these ETFs cover various aspects of the blockchain ecosystem, allowing you to diversify your portfolio while tapping into the potential of this transformative technology.
Amplify Transformational Data Sharing ETF (BLOK)
Best blockchain ETF for active investment strategies in blockchain
This actively managed ETF focuses on companies that benefit significantly from blockchain technology advancements.
– Why our experts picked it
Selected for its aggressive growth strategy and active management, BLOK is ideal for investors looking to engage with the blockchain sector dynamically.
Bitwise Crypto Industry Innovators ETF (BITQ)
Best blockchain ETF for direct exposure to the crypto sector
BITQ focuses on companies that have significant business operations in the cryptocurrency space, such as miners and hardware providers.
– Why our experts picked it
BITQ is favored for its focus on crypto industry leaders, providing a targeted investment option for those bullish on cryptocurrencies.
First Trust SkyBridge Crypto Industry and Digital Economy ETF (CRPT)
Best blockchain ETF for diversified exposure within the digital economy
CRPT invests across a range of digital economy sectors, including companies involved in digital asset trading and blockchain technology development.
– Why our experts picked it
CRPT is chosen for its comprehensive approach, covering various aspects of the digital economy and offering robust potential for growth.
Global X Blockchain ETF (BKCH)
Best blockchain ETF for investors seeking global blockchain exposure
BKCH invests in a wide array of companies involved in blockchain technology globally, offering broad market exposure.
– Pros & Cons
Pros
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Global exposure to the blockchain industry.
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Lower expense ratio of 0.50%, making it cost-effective.
Cons
– Why our experts picked it
Global X Blockchain ETF is recommended for its extensive global reach across the blockchain industry, suitable for those seeking comprehensive market coverage.
Fidelity Crypto Industry and Digital Payments ETF (FDIG)
Best blockchain ETF for low-cost investment in crypto and digital payments
FDIG offers investors an affordable path to invest in the burgeoning fields of cryptocurrency and digital payments.
– Pros & Cons
Pros
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Low expense ratio at 0.39%, enhancing accessibility.
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Diverse holdings in both crypto-related and digital payment firms.
Cons
– Why our experts picked it
FDIG stands out for its cost-effectiveness and balanced approach to cryptocurrency and digital payment industries.
Siren Nasdaq NexGen Economy ETF (BLCN)
Best blockchain ETF for long-term investment in blockchain technology
BLCN focuses on companies that are expected to lead blockchain technology development and implementation.
– Why our experts picked it
Selected for its visionary investment strategy, BLCN is ideal for those who believe in the transformative potential of blockchain over the long haul.
VanEck Digital Transformation ETF (DAPP)
Best blockchain ETF for targeted investments in digital transformation
DAPP specifically invests in companies that are leaders in the digital transformation space, heavily utilizing blockchain technology.
– Why our experts picked it
DAPP is favored for its focus on digital transformation, making it an excellent choice for investors targeting specific high-growth areas within blockchain.
Cryptocurrency vs. blockchain ETFs
Cryptocurrency ETFs focus directly on tracking the prices of cryptocurrencies, offering high-risk and potentially high-return investments tied to specific digital currencies.
On the other hand, blockchain ETFs provide a broader investment in companies that develop or utilize blockchain technology, offering a more stable and diversified way to invest in the technology’s broader potential.