Although Bitcoin ( ) is down, it’s not dead. Many investors are still attracted to digital currency. As this universe develops and matures, there will be more options to access it.
This is a good thing for investors as the going rate for one Bitcoin was nearly $32,000 at late July 15. This price point is not accessible to many DIY investors. Exchange-traded Funds are being creative with crypto plays. They leverage a growing number stocks with correlations or ties to digital currencies to offer market participants equity-based exposure for Bitcoin and other cryptocurrency assets.
TheGlobal X Blockchain ETF ( BBCH).The latest addition to the fray is, which debuted Wednesday. LikeThis category has established playersBKCH must mention “blockchain” or a derivative thereof in their title. U.S. regulators have resisted the approval of a Bitcoin ETF dedicated to Bitcoin. This is evident by their refusal.
Investors shouldn’t assume that the BKCH has no credible cryptocurrency exposure. The opposite is true. Let’s find out why.BKCH has a lot of Bitcoin derivative exposure
The Solactive Blockchain Index is tracked by the newly minted BKCH. It provides exposure for companies that are interested in blockchain technology. This includes companies involved in digital asset mining and transactions, as well as companies in blockchain applications and digital asset hardware.
Investors need to remember that blockchain is not only the backbone for crypto transactions but also has many other applications. BKCH’s seasoned competitors reflect this, but the newer generation blockchain ETFs, such as the Global X fund provide greater exposure to digital coins, albeit via equities.
Take a look at the following information about the rookie ETF: Crypto exchange operatorCoinbase ( COIN),Bitcoin minersMarathon Digital ( MARA).AndRiot Blockchain ( ROOT).The fund’s 35% roster is made up of these funds. This is a great option for those who want to have Bitcoin exposure but don’t need to own it. BKCH’s blockchain credibility is also intact.
Global X research states that Bitcoin, the most well-known and largest cryptocurrency in terms of market capitalization, was the first widespread use of blockchain technology. “Bitcoin has not been compromised or hacked, it is not governed centrally, and transactions are transparent across the network, thanks to the unique features of blockchain technology.”Beyond the ordinary
BKCH, as mentioned above, is a hybrid fund that offers the best of both worlds. Its equity-driven exposure is limited to digital assets, but its allocations of blockchain are a draw. Take a look at the amount of corporate spending on blockchain initiatives. This has little to do with Bitcoin.
Global X adds that organizations will spend $6.6 billion in 2021 on blockchain solutions, a 50% increase over 2020. Global X predicts that by 2024, the total amount of blockchain solutions spending will reach $19 billion. This is a 48% compound annual rate (CAGR).
Blockchain technologies can be used to support supply chains, digital healthcare tracking, and smart contracts.
Bottom line: BKCH, an equity-driven Bitcoin ETF, has blockchain exposure. It could also be a fund that invests in blockchain and has Bitcoin ties. It could be an effective way to access two topics under one roof.