This Blockchain ETF Has Already Risen 35% This Year
Investing in Bitcoin can be risky, but one way investors can take advantage of the growing trend in the industry is by holding shares of companies that use and are involved with blockchain and cryptocurrencies.
The Horizons Blockchain Technology & Hardware Index ETF (TSX:BKCH) offers investors a great way to do just that. The fund looks to replicate the Solactive Blockchain Technology & Hardware Index, which holds many companies involved in the industry and that will benefit from its rising popularity.
The Horizons ETF has a very balanced holding of stocks, with the largest one not even reaching 4% of the total ETF’s weight. The two largest holdings, Lattice Semiconductor Corp (NASDAQ:LSCC) and CMC Magnetics Corp, are at just 3.93% and 3.9% of the ETF, respectively.
What makes the ETF a big unique is that it also provides investors with annual distributions. Although the payments of $0.11908 are a bit modest, it gives investors another way to add to their overall returns.
So far in 2019, the ETF has risen 35% in value as cryptocurrencies have received a lot of attention this year with companies looking to give them another chance. Bitcoin itself has more than doubled, rising 155%. However, it’s started to fall back down since June when it looked like the cryptocurrency might be headed for $14,000 U.S.
Blockchain doesn’t look dead by any stretch, and there’s a good possibility we see it make another resurgence, especially with banks potentially getting involved and cryptocurrencies, as well as social media giant Facebook Inc (NASDAQ:FB).
