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2 Blockchain ETFs to Know About in 2021 and Beyond
Blockchain technology is not going anywhere
A blockchain is a growing list of records, data structures known as blocks, that are linked using cryptography. By design, a blockchain is resistant to modification of its data because once recorded, the data in any given block cannot be alternated retroactively without the alteration of all blocks.
Why should you care about blockchain? Blockchain is the underlying technology of cryptocurrency. It is primarily used as a distributed ledger, meaning blockchain is typically managed by a peer-to-peer network to complete transactions, such as purchasing and selling Bitcoin. Over the past few years, the usage of blockchain has increased due to benefits such as decentralization (decreased reliance on an intermediary for transactions), transparency (transactions can be viewed on a blockchain by anyone), and security (extremely difficult to alter blocks).
When it comes to the equity markets, there is a simple way to gain exposure to publicly-traded companies trailblazing the growth, usage, and innovation of blockchain technology. That simple way is through an ETF. Two of the leading blockchain ETFs are the Siren Nasdaq NexGen Economy ETF (BLCN) and the First Trust Indxx Innovative Transaction & Process ETF (LEGR).
Siren Nasdaq NexGen Economy ETF (BLCN)
BLCN is an ETF that seeks to track the investment results of the Siren Nasdaq Blockchain Economy Index, which is an index designed to measure the returns of companies that are committing material resources to developing, researching, supporting, innovating, or utilizing blockchain technology. BLCN allows you to gain exposure to companies such as JD, Alibaba, Microsoft, Square, and IBM.
As of March 10th, 2021, BLCN has a price of $49.71 and an expense ratio of 0.68%. Since its inception on January 16th, 2018, BLCN has provided a total return of approximately 112% and an average annual total return of approximately 27% with dividends reinvested.
First Trust Indxx Innovative Transaction & Process ETF (LEGR)
LEGR is an ETF that seeks to track the investment results of the Indxx Blockchain Index, which is an index designed to track the performance of…
