Blockchain Funds UK

j_netprofit

I tried searching the forum for this and only found a partially relevant thread in the pensions category, I responded but there wasn't much uptake. Perhaps those invested may see it here?

So, how many of you are invested in blockchain ETFs?

I've a high tolerance to risk (easy come easy go, in for a penny in for a pound...) and I'm more than happy allocating 5-10% of my portfolio into a punt, however that being said I'm not a gambler and take a lot of due diligence with any investment. So please, no 2 o'clock at Cheltenham for the 100/1 comments :-)

From what I can see there are only 4 options with my providers (IWeb and Interactive) all of which on the surface look much of a much. Fees for all are significantly higher than most other funds too. 

So is anybody here already or considering blockchain? 

Caveat; I'm fully aware of the volatility within the sector having been a crypto investor since 2017. Hopefully this can be an informative and grownup discussion although I'm preparing myself for the naysayers...!

MattMattMattUK

Personally I would not go anywhere near them. Crypto is one thing, if one is aware of the risks and pitfalls, but the EFTs seem even more wild west that the volatility and cowboys that are within the general crypto market. 

DavidT67

Not only are the fees higher, but so are the bid/offer spreads.  It's a highly volatile speculative market.  The funds hold less than fifty companies, some of which are bitcoin proxies or miners, and some "picks 'n' shovels" suppliers for the miners.

A 5% stake in blockchain in your portfolio will increase its overall volatility by 15% or more.  If you can ride that rollercoaster you might manage to jump off at a peak rather than a trough, but maybe not. 

j_netprofit

 DavidT67 said:

If you can ride that rollercoaster you might manage to jump off at a peak rather than a trough, but maybe not. 

Definitely think it can only be a relatively short term investment, as you mentioned the funds don't hold many companies therefor the top holdings are very weighted, many of which are mining companies which are extremely non-environmental (can't think of a better explication, but you know what I mean) others are crypto platforms and tech companies.

https://www.ishares.com/uk/individual/en/products/328618/ishares-blockchain-technology-ucits-etf?switchLocale=y&siteEntryPassthrough=true 

[Deleted User]

Are you looking for ETFs composed of companies that invest or are somehow involved with blockchain / crypto? Or are you looking for an ETF that has the raw cryptos themselves? 

If it's the latter then just buy 5% of the top 20 cryptos or something, or maybe print out a list of the top 100 and then throw darts while blindfolded and just buy whichever cryptos the darts land on.

If it's the former, then perhaps iShares Blockchain Technology ETF might be something you're looking for, it's available on T212 platform.

LHW99

[Deleted User] said:

Are you looking for ETFs composed of companies that invest or are somehow involved with blockchain / crypto? Or are you looking for an ETF that has the raw cryptos themselves? 

If it's the latter then just buy 5% of the top 20 cryptos or something, or maybe print out a list of the top 100 and then throw darts while blindfolded and just buy whichever cryptos the darts land on.

If it's the former, then perhaps iShares Blockchain Technology ETF might be something you're looking for, it's available on T212 platform.

The 2023 annual report for BCHS can be viewed at:

https://www.invesco.com/content/dam/invesco/emea/en/product-documents/etf/umbrella/annual-financial-report/invesco-markets-ii-plc_annual-financial-report_en_dec-2023.pdf

and lists some three and a half pages of holdings.

DYOR

j_netprofit

j_netprofit said:

https://www.ishares.com/uk/individual/en/products/328618/ishares-blockchain-technology-ucits-etf?switchLocale=y&siteEntryPassthrough=true 

@ALXNDR89 🙃

[Deleted User]

j_netprofit said:

j_netprofit said:

https://www.ishares.com/uk/individual/en/products/328618/ishares-blockchain-technology-ucits-etf?switchLocale=y&siteEntryPassthrough=true 

@ALXNDR89 🙃

What's the emoji for?

Reaper

One big advantage of an ETF holding crypto over buying directly is that in theory you should be able to put it in an ISA and avoid capital gains tax. I have not been following events closely but although there are US ETFs I'm not sure there are any UK based ones. Correct me if I am wrong.

j_netprofit

I know, I know, I know it's the most volatile holding I have in my portfolio, but right now it's my best performing by country mile. +18% in 30 days.

In for a penny in for a pound.

Eyeful

1. There is nothing new in this.

2. These companies see that they can make a lot of money in charges and fees from this latest investment craze, so as always they start a fund that invests in it.

3. When they stop making enough profit from these "investors" they will just wind up the fund. 

4. They then start another fund that invests in the next latest investment craze doing the rounds (again high fees & wide spreads).