The year 2023 has been a wild ride for cryptocurrencies, and it’s a trend that many investors have been following with cryptocurrencies like Bitcoin and Ethereum surging. This has driven the value of crypto-focused exchange-traded funds (ETFs) to massive gains. In fact, many of 2023’s best-performing ETFs are crypto-focused. One such ETF that has gone overlooked many investors is the iShares Blockchain and Technology ETF (IBLC).
Despite racking up a staggering 113.4% year-to-date gain in 2023, IBLC has just $9.2 million in assets under management (AUM), which is relatively low compared to its peers. The ETF, which also pays a dividend, is one of the few that does in this space.
H2: What is the IBLC ETF’s Strategy?
According to iShares, the “iShares Blockchain and Tech ETF seeks to track the investment results of an index composed of U.S. and non-U.S. companies that are involved in the development, innovation, and utilization of blockchain and crypto technologies.”
H2: IBLC’s Holdings
The IBLC holds 36 different stocks, and its top 10 holdings make up nearly three-quarters of its assets. It’s important to note that the ETF doesn’t own a huge number of stocks, but its targeted bet on the growth of the cryptocurrency industry offers diversification providing exposure to a variety of companies involved in the space.
Coinbase is IBLC’s top holding, as the leading cryptocurrency exchange makes up a considerable 17.7% of the ETF’s assets. Alongside companies like PayPal, NVIDIA, AMD, and IBM, the fund’s diversified holdings include Bitcoin miners and leading semiconductor companies. This wider net of investments gives investors a broader view of the cryptocurrency industry.
H2: A Comparatively Reasonable Expense Ratio
One thing that stands out is that IBLC has a relatively low expense ratio compared to other crypto-themed ETFs. Its 0.47% expense ratio may seem high in a broader market context, but when compared to its peers, it offers a much better deal. For example, the competing Bitwise Crypto Industry Innovators ETF charges a higher 0.85%.
Assuming a 5% annual return and its current expense ratio, IBLC would cost an investor $591 in fees over a ten-year period. On the other hand, the same investment in BITQ would cost $1,049 in fees over the same period. The disparity between these expense ratios becomes clear – choosing IBLC can make a meaningful difference to a portfolio over time.
H2: Is IBLC Stock a Buy, According to Analysts?
According to analysts, IBLC earns a Moderate Buy consensus rating, with the average price target implying a 36.1% upside potential. With its strong year-to-date performance, diversified crypto exposure, cost-effective expense ratio, and its dividend payout, it’s easy to see why many investors are bullish on IBLC.
H2: A Crypto ETF That Pays a Dividend?
This crypto ETF’s appeal is further bolstered the fact that it pays a dividend, which is a rarity in this type of investment. The ETF yields a 1.3%, adding an extra perk for investors on top of its impressive performance.
H2: Investor Takeaway
IBLC and its peers have had a strong year amid the ever-changing crypto landscape, making them an intriguing investment opportunity. With a relatively low AUM and a performance that speaks for itself, the iShares Blockchain and Technology ETF might be flying under the radar. However, its diversified exposure, cost-effective expense ratio, and dividends make it a compelling option for investors looking to navigate the crypto world.
In conclusion, with the surging value of cryptocurrencies, it’s clear that crypto-focused ETFs deserve more attention. IBLC, in particular, has shown impressive growth and benefits that make it a potentially lucrative investment option for the long term. While the crypto market always has its ups and downs, many investors are looking towards IBLC as a valuable choice in the evolving landscape of digital currencies.
I’m a cryptocurrency and blockchain technology journalist. My work has been featured in major publications such as CoinDesk, Bitcoin Magazine, and VentureBeat. I’ve been a respected voice in the cryptocurrency community and my insights into the industry have helped shape its development.
