The DAPP ETF: Digital Assets as an Alternative to Cryptocurrency?

Strong performances from top cryptocurrencies like Bitcoin and Ethereum are spilling over into companies that focus on digital assets, which should help funds like the VanEck Vectors Digital Transformation ETF (DAPP).

DAPP seeks to track the price and yield performance of the MVIS Global Digital Assets Equity Index, which is a rules-based modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of companies involved in digital assets.

As the Index is designed to be a pure-play overview of the relevant players in the space, to be eligible for inclusion, a company must generate at least 50% of its revenues from digital assets projects; generate at least 50% of its revenues from projects that, when developed, have the potential to generate at least 50% of their revenues from digital assets or digital asset projects; and/or have at least 50% of its assets invested in direct digital asset holdings or digital asset projects.

The Index provides significant exposure to key companies in mining, hardware, exchanges, holding and trading, payment gateways, patents and services, and banking. DAPP will not invest in digital assets (including cryptocurrencies) directly or indirectly through the use of digital asset derivatives.

Overall, DAPP offers investors:

  • Companies at the forefront of the digital assets transformation
  • Diversified exposure to digital asset exchanges, miners, and other infrastructure companies
  • Access to companies that have the potential of getting 50% of revenue from digital assets

Top Holding Makes a $1.2 Billion Acquisition

DAPP’s top holding, Galaxy Digital Holdings, recently made a big move in the digital assets space. The holdings company agreed to acquire BitGo, a leading independent digital assets infrastructure provider.

According to a press release, the acquisition will put Galaxy Digital in a position to be a leading full-service platform for institutions seeking access to the crypto economy. BitGo, founded in 2013, has been a pioneer in developing leading digital asset products.

“The acquisition of BitGo establishes Galaxy Digital as a one-stop-shop for institutions and significantly accelerates our mission to institutionalize digital asset ecosystems and blockchain technology,” said Mike Novogratz, CEO and Founder of Galaxy Digital. “The power of the technology, solutions, and people we will have as a result of this acquisition will unlock unique value for our clients and drive long-term growth for our combined business. We are excited to welcome Mike Belshe and the talented BitGo team to Galaxy Digital.”

The top three holdings in DAPP have all been stellar performers the past year:


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