In this article, we discuss the 5 best blockchain and bitcoin ETFs. If you want to read our discussion on the blockchain industry, you can go directly to the 10 Best Blockchain and Bitcoin ETFs.
5. Amplify Transformational Data Sharing ETF (NYSEARCA:BLOK)
5-Year Price Performance: 4.5%
Total Net Assets as of September 14, 2023: $480.62 million
Expense Ratio: 0.75%
Amplify Transformational Data Sharing ETF (NYSEARCA:BLOK) is an actively managed ETF that focuses on companies involved in developing and utilizing blockchain technology. The holdings in the ETF belong to industries like cryptocurrency, finance, data management, cybersecurity, and others that are working on blockchain-based solutions. The top 10 holdings of the ETF represent nearly 40% of the portfolio and include companies like MicroStrategy Incorporated (NASDAQ:MSTR), Coinbase Global, Inc. (NASDAQ:COIN), and Marathon Digital Holdings, Inc. (NASDAQ:MARA).
4. ARK Fintech Innovation ETF (NYSEARCA:ARKF)
Price Performance since Inception: 5.8%
Total Net Assets as of September 14, 2023: $107.87 million
Expense Ratio: 0.75%
ARK Fintech Innovation ETF (NYSEARCA:ARKF) is an actively managed ETF focused on innovative fintech companies. The ETF offers investors exposure to a broad spectrum of the fintech industry, extending beyond blockchain and cryptocurrencies to include areas such as digital payments and financial technology innovations. The top 10 holdings represent 65% of the ETF’s portfolio and include Shopify Inc. (NYSE:SHOP), Coinbase Global, Inc. (NASDAQ:COIN), Block, Inc. (NYSE:SQ) and DraftKings Inc. (NASDAQ:DKNG).
Here’s what Polen Capital said about Shopify Inc. (NYSE:SHOP) in its Q2 2023 investor letter:
“The top three contributors to relative performance during the second quarter were Sage Group, ICON, and Shopify Inc. (NYSE:SHOP). Finally, Shopify’s stock price has seen strong performance during both the second quarter and on a year-to-date basis. The company’s profitability should continue to improve from here, and the ecommerce market has been reaccelerating, as expected. Additionally, the recent announcement that the company would divest its dilutive fulfillment operations should further augment long-term margins and was well-received by shareholders.”
3. Capital Link Global Fintech Leaders ETF (NYSEARCA:KOIN)
5-Year Price Performance: 12.2%
Total Net Assets as of September 14, 2023: $13.49 million
Expense Ratio: 0.75%
Capital Link Global Fintech Leaders ETF (NYSEARCA:KOIN) is an actively managed global equity ETF focused on fintech innovations, including blockchain, digital assets, and financial technology. The top holdings of the ETF belong to segments like payments, investing/trading platforms, data analytics, digital banking, and blockchain/crypto companies. The ETF aims to identify leaders across both developed and emerging markets and provide exposure to various high-growth fintech segments. The ETF has 38 holdings and provides geographic diversification beyond the US.
2. Simplify Bitcoin Strategy PLUS Income ETF (NASDAQ:MAXI)
Price Performance since Inception: 15.1%
Total Net Assets as of September 14, 2023: $21.31 million
Expense Ratio: 0.97%
Simplify Bitcoin Strategy PLUS Income ETF (NASDAQ:MAXI) is an actively managed fund providing exposure to Bitcoin through Bitcoin futures contracts. In addition, the fund generates income through the sale of call options on Bitcoin futures. The income from call option sales is distributed monthly to shareholders as dividends. Since April 2023, the ETF has been making a monthly distribution of 15 cents per share. Based on the current price, this translates into a healthy one-year forward distribution yield of 12.5%.
1. First Trust Indxx Innovative Transaction & Process ETF (NASDAQ:LEGR)
5-Year Price Performance: 26.8%
Total Net Assets as of September 14, 2023: $107.87 million
Expense Ratio: 0.65%
First Trust Indxx Innovative Transaction & Process ETF (NASDAQ:LEGR) has not only emerged as the best-performing blockchain and bitcoin ETF in the last five years, according to our research, but it has also generated a healthy return of 11.9% in the last 12 months. It is an index-based ETF providing exposure to companies that are actively involved in blockchain and cryptocurrency technology. The ETF replicates the Indxx Blockchain Index, which covers companies in developed and emerging markets within the cryptocurrency and blockchain sectors. The ETF has an expense ratio of 0.65%, the second lowest among all the ETFs on this list.
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