Crypto-themed ETFs have been outperforming the S&P 500 since January 2023, a feat that has been achieved with little to no exposure to Nvidia, according to recent data from Bloomberg. This impressive performance has been attributed to the current crypto bull cycle, which has led to significant growth in the crypto industry.
Typically, crypto-themed ETFs invest in Nvidia’s stocks to gain indirect exposure to the crypto industry’s growth, as the company’s GPUs are widely used by crypto mining companies. However, certain ETFs have managed to outperform the S&P 500 without investing heavily in Nvidia. This is particularly notable given Nvidia’s 560% growth during the same period.
Some of the ETFs that have achieved this remarkable feat include VanEck Digital Transformation ETF, Invesco Alerian Galaxy Crypto Economic ETF, Global X Blockchain ETF, First Trust SkyBridge Crypto Industry and Digital Economy ETF, Bitwise Crypto Industry Innovators ETF, Fidelity Crypto Industry And Digital Payments ETF, Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF, Grayscale Future of Finance ETF, and Schwab Crypto Thematic ETF.
The current crypto bull market, which has seen increased institutional adoption and the approval of a Bitcoin ETF, may have played a significant role in driving the impressive performance of these crypto-themed ETFs. The inflows into the crypto market and the growing acceptance of digital assets in traditional finance have likely contributed to the success of these ETFs in outperforming the S&P 500.
With the crypto industry continuing to gain mainstream acceptance and attract institutional investors, it is not surprising that crypto-themed ETFs have been able to outshine the traditional S&P 500 index. Investors looking to capitalize on the growth potential of the crypto market may find these ETFs to be a lucrative investment option, especially with their strong performance relative to traditional benchmarks.
Overall, the success of these crypto-themed ETFs in outperforming the S&P 500 without heavy exposure to Nvidia is a testament to the growing influence and profitability of the crypto industry. As digital assets become increasingly integrated into mainstream finance, these ETFs are well-positioned to continue their strong performance and offer investors the opportunity to capitalize on the expanding crypto market.
