Thanks to a spate of good and bad headlines, ordinary investors are increasingly brushing up against the cryptocurrency universe.
Data also confirm a rising number of market participants are embracing the asset class as a credible portfolio addition. Increasing awareness of and demand for digital assets could bolster the long-term case for equities with intimate ties to the crypto space. Investors can access a basket of such names with the newly minted VanEck Vectors Digital Transformation ETF (DAPP).
DAPP, which debuted in April, could prove to be one of the premier equity-based fund plays on crypto and a useful idea for investors that want to avoid stock-picking in this space. The ETF launch was well-timed.
“A new GOBankingRates poll of current investors reveals just how far into the mainstream cryptocurrency has moved. More than 40% of people with money in the stock market have already traded Bitcoin or one of the thousands of altcoin wannabes. Many, many more are interested but unable or unwilling to commit,” reports Andrew Lisa for GoBankingRates.com.
Drilling Down on DAPP
DAPP, which tracks the MVIS Global Digital Assets Equity Index, holds 25 stocks. Relative to traditional broad market funds, that’s a concentrated lineup.
However, it’s reflective of crypto’s early innings status in an emerging asset class. Moreover, DAPP is more diverse than its roster size implies. At the industry level, DAPP member firms include banks and asset managers, crypto custodians and miners, exchange operators, hardware makers, owners of digital patents, and payment gateway providers.
That diverse lineup could prove notable at a time when many investors are either already involved in crypto or want to be someday.
“The big news to come out of the study was that more than four in 10 people invested in the stock market — 40.94% — are also investing in cryptocurrency. Only about 14% have no interest in crypto at all, but a whole bunch of potential crypto investors are riding the fence,” notes GoBankingRates.com.
As the survey notes, many investors still don’t view crypto as a mainstream asset class. DAPP may be bridging the gap, with many components like Square (NYSE: SQ) and Taiwan Semiconductor (NYSE: TSM) decidedly mainstream.
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The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.