VanEck Crypto and Blockchain Innovators UCITS ETF
| Issuer: Van Eck |
| Asset Class: Equity |
| TER: 65bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 06 May 2021 |
| Ticker: DAGB |
| ISIN: IE00BMDKNW35 |
This fund offers targeted exposure to the companies driving the digital asset revolution. Instead of holding cryptocurrencies directly, it invests in the publicly-listed firms that form the backbone of the ecosystem. The portfolio includes companies operating digital asset exchanges, payment gateways, mining operations, software services, and hardware manufacturing. The strategy aims to capture the growth potential from the structural shift towards blockchain technology and decentralised finance by investing in the key innovators and enablers of this technological transformation, representing an investment in the 'picks and shovels' of the industry.
The underlying portfolio is globally diversified, seeking out leading companies in the digital asset space regardless of their location. This provides broad exposure across different segments of the industry, from established players to emerging growth companies. By investing in the equity of these firms, investors can gain a stake in the long-term value creation of the crypto and blockchain industry, potentially mitigating some of the direct volatility associated with holding individual digital currencies. The fund is physically replicated, meaning it holds the actual shares of the companies in its underlying index, providing direct ownership of the assets.
This approach is suitable for investors who are bullish on the long-term adoption of digital assets and blockchain technology but prefer a regulated, diversified, and traditional equity-based investment vehicle. It allows for participation in the high-growth potential of the sector while avoiding the complexities and specific risks of direct cryptocurrency ownership, such as custody and security. The fund presents a strategic way to invest in the foundational businesses that are building the future of finance and the internet.
