Fidelity Investments was among several asset managers that have helped to introduce a new era of crypto investing. Before there were spot Bitcoin ETFs, however, there were other crypto industry funds. A crypto industry ETF, which invests in the numerous firms that constitute the crypto ecosystem, like crypto miners, could be worth following to start the year.
(FDIG ), the Crypto Industry, and Digital Payments ETF, represents one intriguing option. The strategy tracks the Fidelity Crypto Industry and Digital Payments Index for a 39 basis point (bps) fee. The crypto industry ETF looks for firms in either digital payments, the blockchain, or crypto mining industries. Firms must derive at least 50% of revenue from those relevant themes, with at least 60% of the ETF invested in crypto stocks as compared to digital payments stocks.
The Effect of FDIG
Why look to a crypto industry ETF like FDIG, then? While Bitcoin, of course, has an inherent limit to how much will be mined, growing legitimacy and accessibility for crypto overall may have the potential to boost the crypto space in general. The blockchain remains a powerful tool that has yet to reach mainstream use the way some of its advocates envision. Spot exposure to cryptocurrencies could move awareness of blockchain’s benefits further.
The strategy has returned 37% over the last three months per VettaFi data as of January 18th. For investors looking to diversify their crypto exposure and invest in the firms that make up the “infrastructure” of cryptocurrencies, FDIG could play a role.
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