# Cryptocurrency/Blockchain ETFs (Portfolio Management #2)
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There's been a lot of chatter lately about the new ETFs that have sprung up around cryptocurrency/blockchain. ETFs, which stand for exchange traded funds, can be a useful way to invest in a particular sector or index (like Technology or the S&P 500). The funds are designed to track an index of holdings to give you the same gains/losses, but also provide more diversification and liquidity.

So when I first heard about crypto ETFs, I got really excited!

![Mario.jpg](https://steemitimages.com/DQmermRsvEQTySbikhcEZS6kihDz8VanTjp91KpraJfzSA3/Mario.jpg)

But I soon realized...

**Cryptocurrency ETFs don't invest in ACTUAL cryptocurrency right now!**

There are four major cryptocurrency ETFs in the market right now, with more undoubtedly on the way. BUT if you look closely, they each *"give investors a basket of stocks that stand to gain from the cryptocurrency growth, while minimizing the risk of investing in individual stocks."* **That means none of them actually hold any cryptocurrency!**

The four major funds right now are: 
1. Amplify Transformational Data Sharing ETF (BLOK)
2. Reality Shares Nasdaq NexGen Economy ETF (BLCN)
3. First Trust Indxx Innovative Transaction & Process ETF (LEGR)
4. Innovation Shares NextGen Protocol ETF (KOIN)

Take a look at LEGR for example, most of its holdings are in stocks which contribute mining hardware (e.g., Nvidia) or stand to benefit from blockchain.
![LEGR.PNG](https://steemitimages.com/DQmU56ysE2Dmq4T5huyrsKfcAwkv1LwDXbUtEyNpdGCHAvK/LEGR.PNG)

Koin is pretty similar. Koin noted in their press release that *"the KOIN index focuses in cryptocurrency as a means of payment, mining enablers, solutions providers and adopters,"* but also shows a similar breakdown of major bluechip companies.
![KOIN.PNG](https://steemitimages.com/DQmWrm1F51L85ZGvXBt2ChNg1Ls6PxVXWbBHxqycp9gtmtU/KOIN.PNG)

Now this doesn't meant that there isn't value in these ETFs. But just know that you're **NOT investing in CRYPTOCURRENCY** itself - just companies that the funds **THINK** stand to benefit the most off blockchain.

For now, I'm continuing to hold most of my crypto investments in actual crypto coins themselves.

### Thanks for reading and please feel free to leave any comments or questions below!
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*Disclaimer: This is only my opinion and is not a recommendation for a certain investment action or strategy.*