Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Database
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
    • ETFs Future-Forward 2021: An iShares Investing Symposium
    • Three Themes for 2021: An iShares & MSCI Investing Symposium
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Crypto Channel
  2. Drilling Down on DAM, a Digital Assets ETF
Crypto Channel
Share

Drilling Down on DAM, a Digital Assets ETF

Tom LydonApr 05, 2022
2022-04-05

Increasingly, digital assets means much more than just bitcoin. In fact, this universe is rapidly expanding, prompting many investors to ponder what’s next.

Owing to a breakneck pace of expansion in this universe, keeping up with the space is difficult, but some exchange traded funds ease that burden. That group includes the VanEck Digital Assets Mining ETF (DAM). Fresh on the scene, DAM debuted last month.

The rookie ETF follows the MVIS Global Digital Assets Mining Index, which is designed to provide exposure to companies with footprints throughout the digital assets mining ecosystem. Indeed, several bitcoin miners are among DAM’s 25 holdings, but there’s more to the story with this fund. While DAM is obviously a new ETF, it could be a relevant near-term consideration for some investors.

“From a timing perspective, we think there’s a very strong case to be made that this is a good time to start thinking about a blockchain allocation, or digital asset equity allocation, because these companies are still growing like crazy,” says John Patrick Lee, VanEck ETF product manager.

In addition to bitcoin miners, DAM holds shares of some broader blockchain companies. Those stocks, as is the case throughout the growth spectrum, are off recent highs due to concerns about rising interest rates, but that could be opening the door to valuation opportunities.

“So tech stocks, in particular, you’ve got a rising interest rate environment, you’ve got commodities and inflation fears, and so that’s going to deflate some of the elevated P/Es (price-to-earnings ratios), and the valuations of this type of stock,” adds Lee.

DAM features added diversity with positions in stocks such as Block (NYSE:SQ) — the company formerly known as Square — Coinbase (NASDAQ:COIN), and Silvergate Capital (NYSE:SI). To be sure, those are crypto-correlated stocks, but they aren’t dedicated mining plays.

Arguably, Coinbase’s links to bitcoin prices should wither over time. Rather, as an exchange operator, the company’s share price should be more tied to rising interest in cryptocurrencies and other digital asset efforts. Likewise, Silvergate is the purveyor of a fast-growing digital payments platform. That qualifies as a digital asset, but it doesn’t mean that the company is bitcoin-dependent. Overall, it’s possible that investors considering DAM today could access growth at attractive valuations.

“And the valuations, there might be a little bit of a disconnect there, and you think about growth at a reasonable price. I would argue this is very high growth at a very reasonable price, that’s how I think about it,” concludes Lee.

For more news, information, and strategy, visit the Crypto Channel.

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

Equity ETF Channel

Retirement Portfolio Redux: Is the 60%-40% Portfolio Dead?

Debbie CarlsonOct 22, 2020
2020-10-22

With the 10-year U.S. Treasury yield hovering below 1% and Federal Reserve Chairman Jerome Powell...

Equity ETF Channel

Portfolio Diversification Isn't Dead, It Was Just Sleeping

Debbie CarlsonOct 15, 2020
2020-10-15

Investors could be forgiven to think there was no reason to invest outside of the U.S. for the...

}
X