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This new ETF gives you access to the backbone of the crypto world


No, there is still no Bitcoin ETF.

But another sign of how strongly the investment management world believes in cryptocurrencies and blockchain technology, an exchange-traded fund launched today will provide access to the “eco digital assets ”.

VanEck Vectors Digital Transformation ETF
DAPP,
-10.73%

John Patrick Lee, a VanEck product manager, said it will provide investors with the infrastructure of the blockchain world, from miners to digital asset exchanges to storage solutions.

“Bitcoin is the leading digital asset,” Lee said in an interview. “But that’s only part of the story. We view the entire ecosystem as a long-term structural growth story. Adoption, integration and interest have been and are taking place above retail side and side Institutions And now you even see a number of central banks started to float their own digital currencies.

The company’s CEO, Jan van Eck, speaking at the MarketWatch-Barron conference on crypto assets in early April it almost seems to tease a new ETF. Answering the question about whether there are enough subsidiary companies operating in the ecological environment to secure an ETF, van Eck agrees.

“We think there are finally enough public companies in the ecosystem, whether miners or banks, to assemble a portfolio of companies with this exposure,” van Eck said.

He noted that space purists outperformed crypto or blockchain related companies as part of their overall business, such as Paypal Holdings Inc.
PYPL,
-2.81%
.

It’s one of the new ETFs’ guiding principles, Lee told MarketWatch. The index behind the fund is designed to limit exposure to companies that are not purely digital asset companies. That distinguishes it from an ETF already on the market, shares Amplify Transformational Data Sharing ETF
BLOK,
-6,20%
,
shares many of the same stakes as DAPP, but also includes digital asset search engines like Overstock.com Inc.

BLOK also includes a stake in the Bitcoin Grayscale Trust
GBTC,
-5.39%
,
Currently, this is one of the best options for US investors looking to get exposure to Bitcoin. (Purpose Bitcoin ETF
BTCC,
-1.06%

available in Canada.)

In contrast, DAPP “Will not invest in digital assets (including cryptocurrencies) (i) directly or (ii) indirectly through the use of digital asset derivatives,” VanEck noted in a announcement, in bold.

At launch, DAPP’s top stocks will be Voyager Digital, Marathon Digital Holdings Inc.
MARA,
-15.54%
,
Square, Silvergate Capital Corp,
AND,
-16.31%

and Riot Blockchain
VIOLENCE,
-15.18%
.
The index will rebalance quarterly and, among other things, will try to get its portfolio as close to pure stocks that play as 100% as possible. Out CoinbaseLee said that will go public on April 14, there are many other companies that will be listed.

Continue reading: 3 ETF to reopen trade

This story originally listed Square Inc. is a non-game stock, according to an index tracked by the ETF. It has been corrected.

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