As the cryptocurrency community has been focused on the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States, some cryptocurrency-related ETFs have already made significant gains in 2023. One such ETF is the VanEck Digital Transformation ETF (DAPP), which is up nearly 207% year-to-date, according to TradingView data. Launched in April 2021, DAPP tracks the price and performance of the MVIS global digital asset equity index, which in turn is based on the performance of large companies participating in the digital asset economy. The VanEck DAPP ETF includes Coinbase (COIN), MicroStrategy (MSTR) and Block (SQ) as its core holdings. Coinbase and MicroStrategy have seen huge gains this year, with shares up 312% and 302%, respectively, year-to-date, according to TradingView. At the time of writing, DAPP is the best-performing blockchain ETF in 2023, ahead of products such as the Global X Blockchain ETF (BKCH) and the Bitwise Crypto Industry Innovators ETF (BITQ), according to ETF data provider VettaFi. Global X’s BKCH is up nearly 203% year-to-date, while Bitwise’s BITQ is up nearly 192% in 2023, according to TradingView data. VettaFi’s performance data differs significantly from TradingView’s, with the former lagging by up to 50% in some cases.
Other big winners on the list of best-performing blockchain ETFs in 2023 include the Global X Blockchain & Bitcoin Strategy ETF (BITS) and the iShares Blockchain and Tech ETF (IBLC), which have increased their value by more than year-to-date, according to TradingView. 184%. Despite huge gains in 2023, some blockchain ETFs are still far from their all-time highs. For example, the VanEck Digital Transformation ETF is down about 77% from its November 2021 record of $34. On the other hand, the iShares Blockchain and Tech ETF has hit all-time highs, with the stock topping its previous high of $8.4 in November 2023.
Many companies that have had success with their blockchain ETFs in 2023, including VanEck, Bitwise and Global X, are also looking to launch a spot Bitcoin ETF. Unlike ETFs focused on the blockchain industry, such as DAPP and BKCH, a spot Bitcoin ETF aims to directly track the price of Bitcoin, as it will contain the real cryptocurrency. In another attempt to secure approval of a spot Bitcoin ETF application by the U.S. Securities and Exchange Commission, VanEck filed a fifth amended application for a spot Bitcoin ETF on December 8th. According to Bitwise, a spot Bitcoin ETF will be approved in 2024 and could become “the most successful ETF launch of all time.”
