Blockchain ETFs Outperforming in 2023
The cryptocurrency community has been eagerly awaiting the approval of a spot Bitcoin exchange-traded fund (ETF) in the United States. However, some crypto-linked ETFs have already been experiencing significant gains this year. One of these is the VanEck Digital Transformation ETF (DAPP), which has surged nearly 207% year-to-date (YTD). DAPP tracks the performance of major companies involved in the digital asset economy.
Top Holdings and Performance
VanEck’s DAPP ETF holds Coinbase, MicroStrategy, and Block as its top exposure assets. Coinbase and MicroStrategy have seen substantial growth this year, with their shares rising 312% and 302% YTD, respectively.
Leading Blockchain ETF in 2023
DAPP is currently the top-performing blockchain ETF in 2023, surpassing products like the Global X Blockchain ETF (BKCH) and the Bitwise Crypto Industry Innovators ETF (BITQ).
Other Top Performers
Other notable blockchain ETFs that have performed well in 2023 include the Global X Blockchain & Bitcoin Strategy ETF (BITS) and the iShares Blockchain and Tech ETF (IBLC). Both have added more than 184% to their YTD value.
All-Time Highs and Lows
While some blockchain ETFs have achieved massive returns this year, they are still far off their all-time highs. For example, the VanEck Digital Transformation ETF is down about 77% from its record high set in November 2021. On the other hand, the iShares Blockchain and Tech ETF has been breaking all-time highs.
Pursuit of Spot Bitcoin ETFs
Companies like VanEck, Bitwise, and Global X, which have seen success with their blockchain industry-themed ETFs, are also seeking to launch a spot Bitcoin ETF. Unlike other ETFs, a spot Bitcoin ETF aims to offer direct exposure to the price of Bitcoin by holding the actual cryptocurrency.
Predictions for Spot Bitcoin ETF Approval
In an effort to get their spot Bitcoin ETF filing approved by the U.S. Securities and Exchange Commission, VanEck filed a fifth amended application in December 2023. According to Bitwise, a spot Bitcoin ETF will be approved in 2024 and will become the “most successful ETF launch of all time.”
Hot Take: Blockchain ETFs Soaring in 2023
As the crypto market continues to evolve, blockchain-themed ETFs have emerged as top performers in 2023. VanEck’s Digital Transformation ETF has taken the lead with impressive gains of 207% YTD. With holdings in Coinbase and MicroStrategy, this ETF capitalizes on the success of major companies in the digital asset economy. While some blockchain ETFs are still far from their all-time highs, others like iShares Blockchain and Tech ETF are breaking records. As companies vie for the approval of a spot Bitcoin ETF, the future looks promising for further growth in this sector.
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