Investing in the Blockchain

Also benefiting from this has been the Blockchain sector, i.e. the technological infrastructure that underpins the various cryptocurrencies and where data is stored within encrypted blocks.

The Nasdaq Blockchain Index, after falling towards the end of October in the 1,480-1,470 point area, started a solid upward movement and rose to 2,280 points.

The primary trend is therefore positive and is confirmed by the long position of the main directional indicators.

Only the strong short-term overbought can prevent a further extension (which will have a first target near 2,345 points and a second target in the 2,390-2,400 area) and trigger a physiological consolidation pause.

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It is difficult for now to hypothesise a bearish trend reversal: only a return below 2,135 points, in fact, could provide a first sign of weakness.

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The following ETFs can be used to invest in this sector:

Invesco Coinshares Global Blockchain, ISIN IE00BGBN6P67. It is an ETF with €623m in assets under management, which provides for sampling replication (buying only the most important components of the reference index, i.e. the CoinShares Blockchain Global Equity index) and which adopts an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.65% per annum.

VanEck Crypto and Blockchain Innovators, ISIN IE00BMDKNW35. This ETF has assets under management of EUR 130m and provides full physical replication of all components of the benchmark index (i.e. the MVIS Global Digital Assets Equity index). The ETF adopts an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.65% per annum.

Ishares Blockchain Technology, ISIN IE000RDRMSD1. This ETF has €30m in assets under management and provides for full physical replication of the securities that make up the NYSE FactSet Global Blockchain Technologies index. The ETF adopts an accumulation policy (with dividends being reinvested within the fund). The total expense ratio (TER) is 0.50% per annum.

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