Crypto-Linked ETFs See Significant Gains in 2023 as Spot Bitcoin ETF Approval Awaits

VanEck's DAPP ETF Leads the Pack

While the cryptocurrency community eagerly awaits the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the United States, some crypto-linked ETFs have already been making significant gains in 2023. One standout performer is the VanEck Digital Transformation ETF (DAPP), which has seen a surge of nearly 207% year to date (YTD), according to data from TradingView. Launched in April 2021, DAPP tracks the price and performance of the MVIS Global Digital Assets Equity Index, which is based on the performance of major companies involved in the digital asset economy.

Top Exposure Assets

DAPP's top exposure assets include Coinbase (COIN), MicroStrategy (MSTR), and Block (SQ). Coinbase and MicroStrategy have experienced substantial growth this year, with their shares rising 312% and 302% YTD, respectively, according to TradingView data.

DAPP Outperforms Competitors

DAPP currently holds the title of the top-performing blockchain ETF in 2023, surpassing competitors like the Global X Blockchain ETF (BKCH) and the Bitwise Crypto Industry Innovators ETF (BITQ), according to data from ETF data provider VettaFi. BKCH has surged nearly 203% YTD, while BITQ has returned almost 192% so far this year, based on TradingView data. However, it's important to note that performance data on VettaFi may differ significantly from TradingView data.

Other Top-Performing Blockchain ETFs

In addition to DAPP, other notable winners in the list of top-performing blockchain ETFs in 2023 include the Global X Blockchain & Bitcoin Strategy ETF (BITS) and the iShares Blockchain and Tech ETF (IBLC), both of which have added over 184% to their YTD value, as reported by TradingView.

Despite Gains, Some ETFs Still Below All-Time Highs

Although these blockchain ETFs have posted impressive returns in 2023, some are still far from reaching their all-time highs. For instance, the VanEck Digital Transformation ETF is down about 77% from its record high of $34, set in November 2021. On the other hand, the iShares Blockchain and Tech ETF has been breaking all-time highs, with the stock surpassing its previous high of $8.4 in November 2023.

Spot Bitcoin ETFs and Future Prospects

Many companies that have found success with their blockchain industry-themed ETFs in 2023, including VanEck, Bitwise, and Global X, are also seeking to launch a spot Bitcoin ETF. Unlike blockchain industry-themed ETFs, a spot Bitcoin ETF would offer direct exposure to the price of Bitcoin by holding the actual cryptocurrency. VanEck recently filed a fifth amended application for a spot Bitcoin ETF in an effort to gain approval from the U.S. Securities and Exchange Commission (SEC). According to Bitwise, a spot Bitcoin ETF is expected to be approved in 2024 and predicted to become the "most successful ETF launch of all time."