VanEck Digital Transformation ETF

DAPP

Market cap $434M

Three blockchain and cryptocurrency-linked exchange-traded funds have surged into the market's top decile as momentum scores spiked sharply this week, suggesting these funds may be on the cusp of a breakout rally.

I maintain a hold rating on DAPP due to resistance at key technical levels and negative seasonal trends despite improved valuation. DAPP has outperformed the S&P 500 since February and offers exposure to digital asset transformation but remains highly volatile and concentrated. Liquidity concerns persist with DAPP, and investors should use limit orders; the fund's high yield is not guaranteed given inconsistent distributions.

DAPP provides concentrated exposure to miners, exchanges, and infrastructure; potential for explosive long‑term growth but extreme volatility with frequent ±50% swings. I think it can outperform in risk‑on markets and offer occasional low correlation to equities; suitable for small (5‑10%) growth portfolio allocation. It tracks the MVIS Global Digital Assets Equity Index with accelerated inclusion of qualifying companies; ~28% non‑US exposure; balanced holdings caps.

Crypto, defense, uranium, and AI-linked ETFs delivered big Q2 gains as markets rebounded from near bear territory. Winning ETFs include the likes of CRPT, KDEF, URA and PLTM.

The VanEck Digital Transformation ETF has significantly underperformed both Bitcoin and the S&P 500 since its inception in 2021. DAPP's inflexible passive strategy and material exposure to crypto miners limit its appeal versus actively managed competitors like BLOK that are better able to evolve with an immature industry. The fund's Index lacks any qualitative screening, and improvements in portfolio construction are urgently needed.

URA, DAPP, NIKL, BCOR and CHAT topped sector ETF gains in May, riding a broad market rebound on easing tariffs and strong tech earnings.

Investors seeking to tap the potential rally on tariff pause should invest in beaten-down tech ETFs.

Wall Street rallied on Monday, buoyed by the hopes that Trump might soften his tariff stance. The S&P 500 snapped out of a four-week losing streak, rising 1.8%, whereas the Dow Jones Industrial Average advanced 1.4%.

TORONTO , March 24, 2025 /PRNewswire/ - DeFi Technologies Inc. (the "Company" or " DeFi Technologies") (CBOE CA: DEFI) (GR: R9B) (OTC: DEFTF), a financial technology company that pioneers the convergence of traditional capital markets with the world of decentralised finance, is pleased to announce its inclusion in the MVIS Global Digital Assets Equity Index and VanEck Digital Transformation ETF (NASDAQ: DAPP ), a prominent exchange-traded fund designed to provide investors with exposure to companies participating in the rapidly evolving digital assets economy. VanEck's Digital Transformation ETF seeks to track the MVIS Global Digital Assets Equity Index, offering diversified exposure to digital asset exchanges, miners, infrastructure companies, and other leaders driving digital asset innovation.

Bitcoin has been rangebound between $90,000-$109,000, affecting crypto-related stocks, while gold has outperformed year-to-date. I maintain a hold rating on the VanEck Digital Transformation ETF due to mixed valuation and technical trends, despite its substantial growth. DAPP's portfolio has diversified with increased large-cap exposure and a high long-term EPS growth rate, but its elevated P/E ratio poses risks.