DAPP ETF

Bitcoin finally ran through the much ballyhooed $100,000 level. The largest cryptocurrency has struggled to hold that level.

VanEck Digital Transformation ETF focuses on companies leading digital asset innovation, with a 60/40 split between financials and technology sectors. DAPP's performance is closely tied to the crypto market, showing high volatility but promising long-term growth due to blockchain technology. Despite fair valuations, recent price surges and high volatility make DAPP a hold for now, with a favorable long-term outlook.

VanEck Digital Transformation ETF offers exposure to digital asset exchanges, bitcoin miners, and blockchain infrastructure, and is up 142% over the past year. The election of Trump is expected to significantly reduce crypto regulation, making now a good time to consider investing in DAPP. DAPP is still down from its inception in April 2021, but it has significantly outperformed the S&P Cryptocurrency DeFi Index over the past 3-year and 1-year time frames.

Earlier this year, bitcoin went through its latest quadrennial halving, which reduces the rewards accrued by miners of the largest cryptocurrency, thus boosting its scarcity. Increased difficulty in the bitcoin mining process can lead to higher costs in the form of increased energy output and lower profits due to the reduced rewards.

The VanEck Digital Transformation ETF targets companies forming the backbone of the digital asset economy, including exchanges, miners, and tech providers. The DAPP ETF's holdings are heavily concentrated in Information Technology (73%) and Financials (27%), with significant investments in the US, Canada, and Germany. The ETF offers a cost-effective entry into digital assets with a P/E ratio of 12.54x and a P/B ratio of 1.92x.

Wall Street surged last week due to high expectations for a significant interest rate cut by the Federal Reserve.

Bitcoin is still a young asset relative to more traditional assets such as bonds, commodities, and equities. That youth is one explanation for why it took large professional buyers, including institutional investors, some time to wade into the largest cryptocurrency, but that scenario is changing in earnest.

Regarding the most artificial intelligence (AI)-adjacent sectors, technology, and communication services take the cake, but some other groups are sporting AI credentials. Take the case of bitcoin miners, plenty of which reside in the VanEck Digital Transformation ETF (DAPP).

The VanEck Digital Transformation ETF was formed in 2021. The Fund has experienced significant volatility and losses since its inception. The Fund is not recommended for investment due to its concentrated exposure to overpriced companies, and companies with poor business models.