BCDF vs FDIG

BCDFDHorizon Kinetics Blockchain Development ETF

FDIGAFidelity Crypto Industry and Digital Payments ETF

In short

BCDF Horizon Kinetics skips the index and picks its own blockchain names: roughly 30 companies, actively chosen, with at least 80% of assets pledged to the theme. A concentrated, opinionated take in a corner of the market built mostly on baskets.

FDIG Crypto exposure through the companies, not the coins: roughly 50 miners, exchanges and digital payments processors, weighted by how heavily they trade rather than how big they are, in a Fidelity-built index priced below the thematic norm.

Stated mandate

BCDF The Fund seeks long-term growth of capital through active investment in Blockchain Development Companies. Under normal circumstances, it invests at least 80% of net assets plus investment borrowings in those companies.

FDIG The fund seeks to track the performance of the Fidelity Crypto Industry and Digital Payments Index before fees and expenses. It normally invests at least 80% of assets in equity securities or depositary receipts included in that index.

Why people hold it

• BCDF Actively run, not index-shadowing. A manager chooses the roughly 30 holdings and can shift as the blockchain buildout does, instead of inheriting whatever a rules-based screen spits out.
• The theme is a contract, not a label: the prospectus commits at least 80% of net assets plus borrowings to blockchain development companies.
• Roughly 30 names means each pick carries real weight in the portfolio, a sharp contrast to the sprawling thematic baskets that dilute their best ideas.
• Live since 2022, so it has a real operating record through crypto's ugliest stretch, not a backtest. Standard 1940 Act fund wrapper: 1099 tax reporting, no K-1.

• FDIG Runs 0.39%, under the 0.56% median for global thematic funds. Cheap real estate in a corner of the market where niche fees usually bite.
• Weights positions by trading volume rather than market cap, so the largest company in the group is not automatically the largest holding.fidelity.comfidelity.com 2
• Two engines under one ticker: crypto miners and exchanges on one side, digital payments processors on the other, about 50 names in all.fidelity.com
• Fidelity builds the index itself, screening on revenue plus text analysis of company disclosures, and rebalances quarterly over four days.fidelity.com

Worth knowing

• BCDF 0.85% a year sits above the typical blockchain-equity fund, and above index rivals like BKCH at 0.50% and BLOK at 0.70%. Active stock picking is what the premium buys.
• A small fund that trades lightly. Spreads can run wider than on the category's heavyweights, which matters most on large or hurried orders.
• Distributions land once or twice a year rather than quarterly or monthly, so any income arrives lumpy. This is a growth-of-capital mandate, not an income one.

• FDIG Non-diversified and industry-narrow. Fidelity's own documents flag bigger swings and meaningful exposure to a small number of issuers.fidelity.com
• You own crypto-linked equities, not crypto. Miners and payment processors can respond to very different news on any given day.fidelity.com
• Volume runs light next to the ETF giants, so spreads can widen and the market price can sit at a premium or discount to net asset value.fidelity.com

Full BCDF profile⁠

Full FDIG profile⁠