DAPP ETF

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.

With the SEC opening the floodgates to spot bitcoin ETFs last week, VanEck's Director of Digital Assets Product Kyle DaCruz thinks that interest in cryptocurrency products and bitcoin ETFs is “only going to spike.

ETF issuer VanEck has a long history of forward thinking when it comes to cryptocurrency products. It extended that tradition with the debut of the VanEck Bitcoin ETF Trust (HODL).

In 2024, inflation, interest rates, and the presidential election will likely be on top of ETF investors' minds. Here are four other lesser-known trends and insights — both positive and negative — to consider in 2024.