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Best Blockchain ETFs for Long-Term Investing: What Worked for Me and What You Should Know

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    Jagadish V Gaikwad
    Twitter
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If you’re like me, you’ve probably watched blockchain evolve from a buzzword tethered to volatile cryptocurrencies into a genuinely transformative tech trend that’s reshaping industries. But diving straight into buying individual crypto coins felt way too risky for my long-term financial goals. That’s where blockchain ETFs stepped in — a way to invest in the blockchain story without staring down the rollercoaster of crypto prices every day.

Here’s my deep dive into best blockchain ETFs for long-term investing, peppered with lessons I’ve learned and some thoughts that might surprise you.

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Why Blockchain ETFs? A Long-Term Perspective

I’ll admit, when I first heard about blockchain ETFs, I thought, “Is this just a crypto fad repackaged?” But looking closer, these ETFs don’t just hold cryptocurrencies like Bitcoin or Ethereum — many invest in companies pioneering blockchain tech itself. Think software firms, semiconductor companies, financial firms innovating payments, and more. This means:

  • You’re investing in the growth and adoption of blockchain technology,
  • Not just betting on fluctuating crypto prices, and
  • You get diversification that smooths out some of the wild crypto swings.

Long-term investing is about patience and choosing assets with staying power, and blockchain’s real-world utility suggests it might be here for the long haul — not just a flash in the pan.

My Personal Journey (Hint: It Wasn’t Always Smooth)

Back in early 2023, I jumped into a blockchain ETF heavy on crypto futures. The first few months? A lot of heartburn. The volatility spiked, fees were higher than I expected, and the fund’s tech bets felt scattershot.

That’s when I shifted strategy:

  • Focusing on ETFs investing in blockchain tech companies rather than crypto futures,
  • Paying close attention to expense ratios (they can devour your gains over time),
  • Checking the ETF’s holdings to avoid exposure to questionable startups or coins.

This switch gave me more peace of mind and a portfolio that grew steadily — not spectacularly, but steadily.

Top Blockchain ETFs to Consider for the Long Haul

Here’s a breakdown of some popular blockchain ETFs, focusing on those suitable for long-term investors who want exposure to blockchain technology’s fundamentals:

ETF NameFocusExpense RatioNotable HoldingsCrypto Exposure
Amplify Transformational Data Sharing ETF (BLOK)Invests in blockchain tech companies0.70%Coinbase, Marathon Digital, NvidiaMinimal direct crypto
Siren Nasdaq NexGen Economy ETF (BLCN)Blockchain innovators across sectors0.68%IBM, Microsoft, SquareNo direct crypto
Global X Blockchain ETF (BKCH)Broad blockchain tech exposure0.50%Nvidia, Coinbase, CoinbaseMix of tech & crypto
Bitwise Crypto Industry Innovators ETF (BITQ)Crypto industry companies, mining, exchanges0.85%Riot Blockchain, CoinbaseHigher crypto-related

Expense ratios matter a lot here. While none are dirt cheap compared to broad market ETFs, these seem reasonable given the niche exposure — but watch out for fees over the years.

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What Makes a Good Blockchain ETF for Long-Term?

From my experience and deep dives into ETF databases and expert commentary, good blockchain ETFs for long-term investing usually:

  • Focus on blockchain tech companies rather than just crypto futures or coins to reduce volatility.
  • Have transparent, stable holdings with companies that have a track record or clear blockchain use cases.
  • Maintain lower expense ratios while still offering meaningful exposure.
  • Offer diversification across sectors using blockchain — not just crypto mining or exchanges.

I also prefer ETFs with a strong secondary market presence, so liquidity isn’t an issue when I decide to buy or sell.

What I’d Do Differently

If I’m being honest, I wish I had:

  • Resisted the urge to chase hot crypto futures ETFs early on. The volatility was brutal and distracting.
  • Focused more on the underlying companies driving blockchain adoption instead of just the coins.
  • Paid closer attention to how ETFs rebalance their holdings and avoid those loaded with speculative micro-cap coins.
  • Used tools like ETFDB.com or Morningstar to track performance, holdings, and expense history regularly.

Here’s a quick checklist that would have saved me some headaches:

  • ✅ Confirm the ETF invests primarily in blockchain tech companies.
  • ✅ Check the expense ratio against industry averages.
  • ✅ Review the top 10 holdings for real business viability.
  • ✅ Avoid ETFs with heavy concentration in crypto futures.
  • ✅ Look at historical dividend payouts (yes, some blockchain ETFs pay dividends).

Why I Don’t Just Buy Bitcoin ETFs for Long-Term

A lot of people swear by spot Bitcoin or Ethereum ETFs as pure plays. If you’re comfortable with the wild price swings and regulatory risks, that might be you. But if we’re being real, the crypto space is still evolving fast, and long-term regulation, tax rules, and technology changes can throw curveballs.

I personally prefer ETFs that balance blockchain innovation exposure with less direct crypto bets. They feel like a middle ground between crypto’s upside and stock market stability.

Unexpected Insight: Blockchain ETFs vs. Direct Crypto Investing

Most people see blockchain ETFs as a “safer way” to get crypto exposure. But here’s a twist — blockchain ETFs can sometimes underperform direct crypto in bull runs because of the mix of companies and fees.

That means if you want pure explosive gains, direct crypto might be your game. But for steady compounding and minimizing nightmares about hacks or wallet mishaps, blockchain ETFs provide a more manageable path.

Final Thoughts: Is It Time to Jump In?

If you’re aiming for long-term growth and want to ride blockchain’s wave without sleepless nights watching coin prices, blockchain ETFs deserve a spot on your radar. Just remember the usual investing wisdom — diversify, do your homework, and align choices with your risk tolerance.

To wrap it up, here’s what I believe:

  • Blockchain ETFs that invest in companies using blockchain tech offer a powerful growth story.
  • Avoid ETFs heavy in crypto futures if you want less volatility and smoother returns.
  • Watch fees, holdings, and company fundamentals before committing.

Whether you’re an ETF newbie or a seasoned investor, blockchain ETFs can be a clever way to stay in the game without the emotional rollercoaster. After all, investing should feel empowering, not exhausting.

Thanks for reading my take on blockchain ETFs! If you’re already investing in this space, I’d love to hear what’s worked for you—or what you’d do differently.

Drop a comment, share your story, or just say hi.

Here’s to smarter, calmer investing.

Cheers!

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