Even with leading cryptocurrency bitcoin hitting an all-time high, investors may not be ready to jump into the digital currency arena just yet, but there are still some related exchange traded fund (ETF) options to consider.
ETFs like the Global X FinTech ETF (FINX) hold companies that are starting to integrate bitcoin into their core operations. One of those is digital payment platform PayPal.
“Bitcoin (BTC) trading volumes on global payment service provider PayPal reached $145.60 million on Oct. 20, just as the benchmark crypto rallied toward its record high near $67,000,” a Coin Telegraph article noted.
FINX seeks to provide investment results that correspond to the Indxx Global Fintech Thematic Index. The index is designed to provide exposure to exchange-listed companies in developed markets that provide financial technology products and services, including companies involved in mobile payments, peer-to-peer (P2P) and marketplace lending, financial analytics software, and alternative currencies, as defined by the index provider.
In summary, FINX gives investors exposure to:
- High growth potential: FINX enables investors to access high growth potential through companies that are applying technological innovations to disrupt and improve the delivery of financial services.
- An unconstrained approach: The fund’s composition transcends classic sector, industry, and geographic classifications by tracking an emerging theme.
- ETF efficiency: In a single trade, FINX offers access to dozens of companies with high exposure to the fintech theme.
Playing Crypto's Underlying Tech
Another way to get crypto exposure without holding the actual currency is via its underlying technology — blockchain. One fund that does just this is the Global X Blockchain ETF (BKCH), which seeks to provide investment results that generally correspond to the price and yield performance of the Solactive Blockchain Index.
The index is designed to provide exposure to companies that are positioned to benefit from further advances in the field of blockchain technology. So with BKCH, investors get access to holdings like cryptocurrency mining company Marathon Digital Holdings and digital currency exchange platform Coinbase.
Overall, BKCH gives investors access to:
- High growth potential: The global blockchain solutions market is expected to increase more than 50% from 2020 to 2021.
- Global tailwinds: Blockchain technology is a global theme, poised to benefit as governments and industries seek to improve the accuracy, transparency, and security of financial transactions.
- An unconstrained approach: This theme is bigger than just cryptocurrency. BKCH invests accordingly, with global exposure across multiple sectors and industries.
For more news, information, and strategy, visit the Thematic Investing Channel.