HARD LESSON FOR CRYPTO INVESTORS: PRICE IS A LUCK BY CHANCE TERM
Bitcoin - the world's largest cryptocurrency - has dropped by 56% year-on-year and 69% below the all-time high of $ 68,990 in November 2021.
Although sentiment is far from bullish these days, recent investor comments by Mark Cuban may delight crypto lovers.
"Crypto is going through a difficult time online," wrote Shark Tank star and owner of Dallas Mavericks in a tweet.
"After the proliferation of exciting applications, NFTs, DeFi, P2E, we have seen a simulation phase as chains support the movement of those applications in their chains (ala bandwidth and storage support in the early 2000s)."
In the crypto arena, Cuban expects the winning players to be the ones who "use smart contracts to improve business productivity and profitability."
If you do not want to select individual winners and losers in the crypto world, you can still get exposure to space with ETFs.
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Global X Blockchain ETF (BKCH)
Blockchain is more than just bitcoin. For exposure to the best players in the category, consider the Global X Blockchain ETF.
The fund is investing in businesses that are firmly entrenched in increasing blockchain technology adoption. They include crypto miners, digital asset transaction technologists and developers of blockchain applications.
The Global X Blockchain ETF portfolio currently contains 25 shares, the top five held Coinbase Global (11.2%), Marathon Digital Holdings (9.3%), Riot Blockchain (9.2%), Canaan (8.5 %), and Galaxy Digital Holdings (7.9%).
The ETF has an average cost of 0.5%.
First Trust Indxx Innovative Transaction & Process ETF (LEGR)
The First Trust Indxx Innovative Transaction & Process ETF aims to duplicate the performance of the Indxx Blockchain Index. The index is made by companies that actively use, invest in, or develop products that benefit from blockchain technology.
The ETF holds 104 shares, making it one of the most diversified currencies in the space.
Although most blockchain ETFs are based in the U.S., LEGR provides investors with worldwide reach. In fact, the U.S. represents just 34.2% of the fund's exposure area.
LEGR also has national exposure to China (13.3%), Germany (8.2%), India (7.5%), France (5.2%), U.K. (5.0%) and Switzerland (2.8%) among others.
The LEGR cost ratio is 0.65%.
Bitwise 10 Crypto Index Fund (BITW)
If you just want to invest in big cryptocurrencies, the Bitwise 10 Crypto Index Fund should be considered.
This fund tracks the index made by the 10 largest crypto assets measured in market capitalization. Because cryptocurrencies tend to be highly volatile, the index is updated monthly to keep up to date with the ever-changing market prices.
The top five most popular wallets are Bitcoin (67.5%), Ethereum (23.1%), Cardano (2.7%), Solana (2.2%) and Polkadot (1.5%).
BITW has a very high cost of 2.5%.
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