New funds offer indirect exposure to blockchain and bitcoin. But buyer beware


There are about 10 funds including both exchange-traded funds and mutual funds that offer some exposure to blockchain, according to Tayfun Icten, senior analyst focusing on alternative strategies at Morningstar.

The Securities and Exchange Commission currently does not allow those funds to invest directly in cryptocurrencies like bitcoin, Icten said.

And Morningstar does not cover these funds and has not rated them. “I am hesitant to even quote any of these funds,” Icten said.

Lipper, another fund research firm, also does not track these funds, according to a company spokesman.

The funds generally invest in emerging technologies, including companies that utilize blockchain, Icten said. The funds are also still small in terms of asset size and experimental in nature, he said.



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