6 Blockchain ETFs
For investors in the US who invest in, or are intrigued by the blockchain space, there are now 6 ETFs (Exchange-Traded Funds) which offer exposure to stocks of companies connected to the blockchain space. While these ETFs are quite differentiated in terms of inception, return, fees and holdings – to name but a few aspects – they’re all created with one objective: to provide niche technology enthusiasts and investors with blockchain stock exposure. These are: the Amplify Transformational Data Sharing ETF (BLOK), the Reality Shares Nasdaq NexGen Economy ETF (BLCN), the First Trust Indxx Innovative Transaction & Process ETF (LEGR), the Innovation Shares NextGen Protocol ETF (KOIN), the REX BKCM ETF (BKC), and the Reality Shares Nasdaq NexGen Economy China ETF (BCNA).
A closer look at each of these 6 reveals that on average, about 60-70% of fund holdings are dominated by the technology sector, and a good 50%+ allocation on average is to North American stocks. The table below provides a snapshot view of the key characteristics of each of these funds.
As of August 21, 2018. Source: Etfdb.com, Yahoo Finance
7.6% Return Over 6 Months
We also looked into the returns that these ETFs have delivered in the recent past. In terms of returns, the Innovation Shares NextGen Protocol ETF (KOIN) is leading all the other blockchain ETFs with positive returns of 0.8%, 3.9%, and 7.6%, over the past 1 month, 3 month, and 6 month periods, respectively. For the last 6 months, KOIN’s returns are far ahead of LEGR, which delivered 2.6%.
The chart below shows how KOIN has been able to outperform its major blockchain ETF competitors by a healthy margin. The out-performance warrants a little more detail on KOIN – see below graph.
The Innovation Shares NextGen Protocol ETF (KOIN)
KOIN seeks to give investors access to companies that may benefit from blockchain technology. Top holders of KOIN include Taiwan Semiconductor Manufacturing (TSM), Amazon (AMZN), Cisco Systems (CSCO), Microsoft (MSFT), and Oracle (ORCL). Stocks in the KOIN portfolio belong to either of their four custom stakeholder categories, which are:
- Cryptocurrency as payment
- Mining enablers
- Solution providers
For more on blockchain and cryptocurrency ETFs, click here.
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