Crypto ETFs Record Significant 2023 Gains as Companies Eye Spot Bitcoin Launch
Summary:
Despite focus on the potential approval of a Bitcoin exchange-traded fund (ETF) in the U.S., several crypto-linked ETFs have posted significant gains in 2023, notably the VanEck Digital Transformation ETF, which has surged nearly 207% year to date. Performance data varies from different sources, with TradingView often showing higher percentages compared to ETF data provider VettaFi. While many blockchain ETFs are far off their all-time highs, firms like VanEck, Bitwise, and Global X are looking to launch a spot Bitcoin ETF that would offer direct exposure to the price of Bitcoin by holding the actual cryptocurrency.
While attention is primarily on the potential ratification of a Bitcoin exchange-traded fund (ETF) within the USA, various cryptocurrency-focused ETFs have already been posting substantial surges in 2023. The pivoting focus has been on the VanEck Digital Transformation ETF (DAPP), which has seen a nearly 207% surge year-to-date (YTD) as shown by TradingView data. Initiated in April 2021, DAPP monitors the costs and achievements of the MVIS Global Digital Assets Equity Index, an index concerned with the progress of dominant entities within the digital asset landscape.
Within DAPP, cryptocurrencies like Coinbase, MicroStrategy, and Block are prominently featured. Their substantial growth within this year is evident, with respective raises of 312% and 302% YTD. As of now, DAPP is on top of the blockchain ETF charts for 2023, superseding competitors like Global X Blockchain ETF (BKCH) and Bitwise Crypto Industry Innovators ETF (BITQ), based on ETF data provider VettaFi's data.
TradingView data reveals BKCH has experienced nearly a 203% surge YTD, while BITQ has an approximately 192% return this year. Comparatively, data from TradingView does not match VettaFi's records, with the latter often falling behind by up to 50% in some instances. In 2023, Global X Blockchain & Bitcoin Strategy ETF (BITS) and iShares Blockchain and Tech ETF (IBLC) join the list as key performers with over 184% added to their YTD values.
Even though they've received significant returns this year, blockchain ETFs are yet to reach their highest records. For instance, the VanEck Digital Transformation ETF is about 77% down from its record-high $34 from November 2021. In contrast, iShares Blockchain and Tech ETF has been achieving record highs, with its stock surpassing its previous high of $8.4 in November 2023.
Companies that have prospered with their blockchain-themed ETFs in 2023, such as VanEck, Bitwise, and Global X, are also aspiring to initiate a spot Bitcoin ETF. Unlike their blockchain-themed counterparts like DAPP or BKCH, a spot Bitcoin ETF aims to provide direct penetration to Bitcoin's price as it would possess the actual cryptocurrency.
In its attempts to gain approval from the U.S. Securities and Exchange Commission for a spot Bitcoin ETF, VanEck submitted its fifth revised application on December 8. Bitwise expects a spot Bitcoin ETF to be sanctioned in 2024, which they predict will be the "most successful ETF launch of all time.
Published At
12/14/2023 3:24:35 PM
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