3 best Blockchain ETFs on the FTSE

3 min read | August 11, 2021 07:38 AM BST | By Suhita Poddar

Summary 

  • Blockchain ETFs allows investors exposure to blockchain focused stocks and companies without directly investing in them.
  • Blockchain technology is used in cryptocurrencies, but it also has wide ranging applications across various sectors such as financial services, technology and others.

Blockchain focused exchange traded funds (ETF) allow investors to gain exposure to stocks that use blockchain technology. Thus, investing in ETFs also allows investors who may hesitate to directly invest into cryptocurrency due to their volatility or other ethic issues related to blockchain companies.

Blockchain is the technology behind major cryptocurrencies such as Bitcoin, Ethereum and others, however the application of blockchain technology is far more wide ranging and is utilised across the financial services sector, technology and more.

Let us take a deep dive into the 3 Blockchain ETFs. All these three ETFs have an annual total expense ratio of 0.65 per cent.

 

  1. Invesco IVZ Elwood Blockchain UCITS ETF GBX (LON:BCHN)

Ireland domiciled and LSE main market listed ETF Invesco Elwood Blockchain ETF is the top exchange traded fund in the UK markets.

The fund has about 50 shares, of which 17 are related to cryptocurrency, while the others are tech related companies. Invesco Elwood has a holding in companies such as e-commerce major Amazon, semiconductor maker Taiwan Semiconductor Manufacturing Co Ltd and others.

Its fund size is £735 million, and it has exposure to both cryptocurrencies and also blockchain companies. The ETF has an optimised sampling replication method and accumulating method of profits.

The Invesco ETF reported its net asset value per share as of 9 August of USD 118.062. Invesco Elwood Blockchain’s one year return stands at 75.72 per cent as of 10 August and is the best performing out of the UK blockchain ETFs.

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  1. First Trust Indxx Innovative Transaction & Process UCITS ETF (LON:BLOK)

First Trust Indxx Innovative is also an Ireland domiciled and LSE main market listed ETF. The ETF has a physical or full replication method and an accumulating method of profits. Its fund size is £84 million.

Unlike Invesco, First Trust has a much lower exposure to cryptocurrency and instead focuses more on companies involved in blockchain technology and has a lot of holding in tech based companies such as Microsoft Group and others.

First Trust ETF reported its net asset value per share as on 14 July of USD 31.162. First Trust’s one year return stands at 29.26 per cent as of 10 August.

 

  1. Vaneck Vectors Digital Assets Equity ETF (LON:DAGB)

Vaneck Vectors is another Ireland domiciled and LSE main market listed ETF. The ETF also has a physical or full replication method and an accumulating method of profits. Its fund size is £10 million.

The ETF was listed on the LSE on 6 May. The Vaneck ETF differs from the other ETFs as it has a much stronger tilt towards cryptocurrency related companies.


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