How Nvidia Is Inadvertently Fueling the Next Crypto Boom

Nvidia (NVDA), an American technology company renowned for its GPUs and AI ventures, has emerged as a significant driver of top-performing Exchange-Traded Funds (ETFs) over the past 18 months, according to a recent report.

According to Bloomberg, the best-performing ETFs in the United States held exposure to Nvidia in some form or another, while the worst-performing investment products had none. The AI trendsetter’s shares have surged more than 2,000% in the past 18 months, briefly making Nvidia the world’s most valuable company.

Only around 96 ETFs, out of more than 2,000 products, performed well with little or no exposure to NVDA, including crypto-focused ETFs like the VanEck Digital Transformation ETF (DAPP) and the Bitwise Crypto Industry Innovators ETF (BITQ), Bloomberg reported. Some thematic funds focused on IPOs, cloud computing, and cybersecurity also delivered decent returns without Nvidia exposure.

The report noted that demand for exposure to Nvidia is exceptionally high, with $10 billion worth of shares traded over five trading sessions through Tuesday. The report stated:

“It’s been so difficult to outperform the S&P 500 without Nvidia exposure that an investor looking to upstage the broader market would have had to be in products some might consider niche or unconventional, including uranium, crypto, as well as Polish and Argentinian investments.”

Investors without exposure to NVDA flocked to crypto and other alternative investment products to outperform the market. Nvidia shares began the year at $49.24 and climbed steadily throughout the first and second quarters, reaching an all-time high of $140.76 on June 20, according to TradingView.

Additionally, the popularity of AI-themed cryptocurrencies has also increased alongside Nvidia’s valuation. As highlighted through a video, tokens like Injective (INJ) and Near Protocol (NEAR) have risen 201.40% and 262.92%, respectively, since June 2023, according to CoinMarketCap data.