Want Crypto Exposure without the Currency? These ETFs Own Crypto Miners

While the SEC has but to approve a Bitcoin ETF, many ETFs nonetheless supply publicity to crypto property by way of the shares of cryptocurrency miners.

Cryptocurrency mining is the course of by which new crypto cash are added to circulation. For most cash, together with Bitcoin, new cash are mined by the use of computer systems to unravel computational puzzles.

Three of the extra widespread publicly traded crypto mining shares embrace Riot Blockchain (RIOT), Bit Digital (BTBT), and Marathon Digital Holdings (MARA).

These three crypto-miner shares seem in quite a lot of ETF portfolios, however just one ETF contains all three shares in its high 15 largest holdings: the Bitwise Crypto Industry Innovators ETF (BITQ).

Source: ETFdb. Data as of June 15, 2021

However, each the VanEck Vectors Digital Transformation ETF (DAPP) and Invesco DWA SmallCap Momentum ETF (DWAS) maintain each Riot Blockchain and Marathon Digital of their high 15.

BITQ holds holds 10.28% of its portfolio in Riot Blockchain, 5.22% of its property in Marathon Digital, and a pair of.96% of its property in Bit Digital.

Overall, BITQ has 31 holdings, with 85% of its index monitoring pure-play crypto firms, together with crypto mining shares. Up to fifteen% of the fund’s index focuses on giant cap companies that embrace at the least one enterprise considerably targeted on the crypto financial system.

BITQ has an expense ratio of 0.85%.

Meanwhile, DAPP holds 5.70% of its property in Riot Blockchain and 5.38% in Marathon Digital:

Top 15 Holdings 2

Source: ETFDB.com.

The fund has 27 complete holdings and tracks a market-cap-weighted index of world firms that obtain 50% of their income from digital property. DAPP has an expense ratio of 0.65%.

DWAS isn’t a digital property ETF, particularly, however a small cap momentum fund that makes use of the proprietary Dorsey Wright methodology to pick a portfolio of roughly 200 names. It has an expense ratio of 0.60%.

It has minimal allocation to each Marathon Digital and Riot Blockchain, at 1.15% and 0.92%, respectively.

Top 15 Holdings 3

Source: ETFdb.com

Other ETFs with publicity to Riot Blockchain embrace the Invesco DWA Technology Momentum ETF (PTF), which has 3.19% of its portfolio allotted to the inventory and the SPDR S&P Kensho New Economies Composite ETF (KOMP), which has 1.84% of its portfolio in Riot.

Marathon Digital’s inventory additionally seems in the Amplify Transformational Data Sharing ETF (BLOK), with a weighting of three.52%, and the Invesco DWA Industrials Momentum ETF (PRN), at 3.42%.

For extra information, info, and technique, go to the Crypto Channel.

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About the Author: Daniel