Introduction

The VanEck Digital Transformation ETF, known as DAPP and priced at $9.84, is a fund that follows the MVIS Global Digital Assets Equity Index. This index includes companies involved in the digital assets economy.

DAPP is part of the newer crypto ETFs and was introduced in April 2021. Unfortunately, due to the timing of its launch during a crypto winter, a $10,000 investment in DAPP at the beginning is now valued at around $3,000. However, the fund has nearly tripled in value over the past year.

For a company to be included in the index, it must either generate 50% of its revenue from digital assets projects or have the potential to achieve this revenue percentage from digital assets.

The ETF has 22 holdings with an average market capitalization of $8.3 billion. Small-cap stocks make up 45% of the fund, while large caps account for 29% and mid caps for 26%. The majority of the portfolio (64%) comprises domestic stocks, followed by Canadian firms (14%) and German companies (6%).

Top holdings in the VanEck Digital Transformation ETF include well-known names in the crypto industry such as Marathon Digital, Coinbase Global, MicroStrategy, and CleanSpark (CLSK). Together, these holdings make up approximately 60% of the total portfolio.

Although investing in digital assets like cryptocurrencies may seem daunting for some, investing in companies related to digital assets through funds like the VanEck DAPP can be a smart way to capitalize on the growing adoption and use of digital assets.