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Blockchain ETFs are on a steep climb up – but it may take a while for disillusioned investors to return

by Isabel Woodford

May 2, 2019, 3:44PM EDT  ·  3 min read

Quick Take

  • The last six months have seen strong performances by the biggest blockchain exchange-traded funds (ETFs), launched in early 2018
  • The ETFs track the share-price of companies that develop or use blockchain technology, largely investing in mining, tech or finance firms
  • After a year-long downwards curve, the last six months have instead shown their value surge sharply upwards
  • Still, investors remain shy, with the assets invested in the ETFs generally still down

by Isabel Woodford

May 2, 2019, 3:44PM EDT  ·  3 min read

January 2018 saw the first four blockchain ETFs break onto the scene in quick succession in the US. They were somewhat of a novelty, tracking the share price of 20 to 50 companies developing or using blockchain in some capacity, for an average 0.75% management fee. Investors flocked to them, pumping in hundreds of millions, hoping to nab a piece of a pie predicted to save banks between $15 billion and $35 billion a year according to consulting firm Bain.