AI and Crypto ETFs Are Just the Same Old Wall Street Shell Game, Rebranded
So, I’m reading this quote from some BlackRock executive, a guy named Jay Jacobs, and he says, "One of the biggest trades we’re seeing this year is simply people leaving the traditional tech sector and getting more granular into AI-specific ETFs." (BlackRock sees shift in artificial intelligence trade. Where investors are putting their money now.)
Let’s just pause there. "Getting more granular."
You have to admire the language. It’s perfect corporate-speak, designed to make you feel like you’re part of some sophisticated, high-IQ movement. It sounds like investors are suddenly becoming discerning connoisseurs, examining their portfolios with a jeweler's loupe. But let's be real. "Getting granular" is just a polite way of saying "chasing the next shiny object with a cooler-sounding acronym."
For years, the magic word was "tech." You just threw your money at anything with "tech" in the name and watched it go up. Now, that word has lost its sparkle. It’s too broad, too boring. It’s your dad’s investment. So Wall Street, in its infinite wisdom, did what it always does: it took the same old product, chopped it into smaller pieces, and slapped new, sexier labels on them.
And we, the eager public, are eating it up.
The "Granular" Illusion
This whole shift is a masterclass in marketing, not investing. Take a look at one of these hot new funds, the iShares A.I. Innovation and Tech Active ETF, or BAI for short. Sounds impressive, right? It’s up 36% since it launched last fall, so the hype is definitely working. But what exactly are you buying when you buy "AI Innovation"?
You’re buying Nvidia. You’re buying Broadcom, Meta, and Microsoft.
Wait a second. Aren’t those... just tech stocks? The same megacap behemoths that have dominated the S&P 500 for the last decade? According to Factset, over 85% of BAI’s holdings are plain old electronic technology and technology services stocks. This isn't a granular play; it’s the same old tech sector fund wearing a trench coat and a fake mustache. It’s a bad idea. No, 'bad' doesn't cover it—this is a five-alarm marketing gimmick.
They’re selling you the sizzle of artificial intelligence, but the steak is the same cut of beef you already had on your plate. So, are investors really making a sophisticated, tactical move? Or are they just being funneled from one pen to another, convinced they’ve discovered a new pasture when it’s just the same field with a different sign on the gate? What does it say about us that we're so desperate for the "next big thing" that we'll buy the last big thing as long as it comes in a new box?
Same Hype, Different Acronym
Offcourse, the AI bucket is only one half of the story. The other bucket is filled with crypto and blockchain—the digital wild west that’s been promising to "disrupt" everything for 15 years. Jacobs, the BlackRock guy, says, "People want to play this potentially very disruptive theme."
Here’s my cynical translation: "People have a crippling case of FOMO and are willing to throw money at anything that sounds vaguely futuristic and confusing."
And why wouldn't they? The Amplify Transformational Data Sharing ETF (BLOK) is up almost 89% in the past year. The iShares Ethereum Trust (ETHA) is up nearly 42% in just the last three months. Those aren't numbers you can ignore. I can just picture some fund manager in a glass-walled office in Midtown, leaning back in his ergonomic chair, the faint hum of a server rack in the background. He’s not selling technology; he’s selling a lottery ticket with a prospectus.
The whole thing gets a veneer of legitimacy now that D.C. is involved. President Trump signed the GENIUS Act stablecoin bill into law, which is like the government officially sanctioning the casino. It tells everyone that this isn't just a fringe obsession for nerds anymore; it's a real, state-approved asset class. And that just pours more fuel on the fire. It’s all part of the same hype cylce.
Frankly, it's exhausting. My internet provider can barely keep my connection stable for a two-hour movie, but we're supposed to believe these blockchain funds are building the immutable future of global finance. Give me a break. They're selling disruption, but the only thing getting disrupted is your bank account if you're not careful...
So, What IS Artificial Intelligence, Anyway?
When you read the latest `news about artificial intelligence`, it’s all about large language models and world-changing breakthroughs. But when you ask Wall Street, `what is artificial intelligence`? The answer seems to be: "Whatever stocks are going up right now."
It's a marketing category. It means chipmakers. It means cloud computing giants. It means social media companies with massive data sets. It’s a convenient, forward-looking label for the same handful of companies that have been driving the market for years. This isn't an investment thesis; it's an SEO strategy.
And don’t forget that this stuff is still incredibly volatile. On a recent Friday, both the AI-focused BAI and the blockchain-focused BLOK dropped by about 5%. A single day. The same rocket fuel that sends these things to the moon can also make them blow up on the launchpad. It ain't a one-way trip.
Then again, these funds are up massively over the last year. Maybe I'm just a washed-up cynic yelling at clouds while everyone else gets rich. Maybe this time is different and I’m the one who's going to be left behind, clinging to my "diversified portfolio" like a fool. But I really, really doubt it.
They're Just Selling You a Different Flavor of Kool-Aid
Let's cut the crap. This isn't about investors getting "smarter" or "more granular." This is about Wall Street’s unparalleled genius for repackaging and reselling the same dream. They took the "tech" bubble, which was getting a little stale, and split it into two new, exciting flavors: "AI" and "Crypto." One tastes like robots and the future; the other tastes like digital gold and rebellion. But underneath the artificial coloring, it’s the same sugar water. It’s a hype cycle, expertly managed and marketed to a public desperate to believe they’ve found a shortcut to wealth. And it will work, right up until the moment it doesn’t. Again.