Avoid the Deep Volatility in Crypto With These Blockchain ETFs | ETF Trends

As cryptocurrency is still a nascent market, its volatility may be around for quite some time, but there are other ways to invest in its potency as a technology via blockchain exchange traded funds (ETFs).

“I always tell people only get involved only by bitcoin if if you’re ready to buckle up and weather the storm because this is the wild west,” said Arizona Senate candidate Blake Masters in a Fox Business interview. “You know, I think this technology is important and cryptocurrency decentralized financial technology. And we need some innovation here because we’ve got a corrupt and inefficient banking system.”

“It’s true that bitcoin’s down big, almost 50% right in the last two weeks,” Masters added. “But let’s put it in perspective. You know, it’s up 10x still in the last two years. And so there’s an acronym in the Bitcoin community, HODL, self-conscious misspelling of hold. And it means when you get involved with this thing, maybe buckle up and be ready because you’re going to have some volatility.”

To invest in the technology that underpins cryptocurrencies, investors can look at the Global X Blockchain ETF (BKCH), which seeks to provide investment results that generally correspond to the price and yield performance of the Solactive Blockchain Index. The index is designed to provide exposure to companies that are positioned to benefit from further advances in the field of blockchain technology.

Overall, BKCH gives investors access to:

  • High growth potential: The global blockchain market was valued at nearly $5 billion in 2021, with forecasts suggesting that it could grow over 10x to more than $67 billion by 2026.
  • Global tailwinds: Blockchain technology is a global theme, poised to benefit as governments and industries seek to improve the accuracy, transparency, and security of financial transactions.
  • An unconstrained approach: This theme is bigger than just cryptocurrency. BKCH invests accordingly, with global exposure across multiple sectors and industries.

More Targeted Exposure to Crypto

For more targeted exposure to crypto via active management, investors can check out the Blockchain & Bitcoin Strategy ETF (BITS). The fund takes long positions in U.S.-listed bitcoin futures contracts and invests, directly and/or indirectly, in companies positioned to benefit from the increased adoption of blockchain technology.

Overall, BITS gives investors:

  • Bitcoin futures exposure: By investing in the regulated bitcoin futures market, BITS offers a secure and transparent way of gaining exposure to the world’s largest cryptocurrency.
  • Long-term growth potential: BITS seeks long-term growth potential by combining prudent management of bitcoin futures positions with exposure to disruptive companies on the cutting edge of the emerging blockchain technology and digital assets theme.
  • ETF efficiency: BITS delivers efficient access to bitcoin futures and blockchain technology stocks in a single trade.

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