Cryptocurrencies may be having a rough 2022, but blockchain technology is set to thrive in the future, according to audit firm KPMG.
“A new report from global auditing giant KPMG predicts a coming downturn in crypto investments in the second half of 2022,” The daily newspaper Hodl reported.
“According to KPMG’s Pulse of Fintech H1’22 reportcrypto markets will continue to face challenges in the second half of the year, which should dampen investor sentiment,” the report added.
Cryptocurrencies have mirrored movements in traditional stocks and bonds for most of the year, falling amid inflation fears as more retail investment money is replaced by institutional money . Nevertheless, with its wide range of uses, blockchain technology can expect to flourish as its use becomes more widespread.
“Investments in crypto and blockchain will increasingly focus on infrastructure. While investments in cryptocurrencies are expected to slow further [in H2’22]there will likely be continued focus on the use of blockchain in modernizing financial markets,” the KPMG report notes.
Active and diverse exposure to blockchain
Investors looking for active global diversification into blockchain opportunities can look to exchange-traded funds (ETFs). In particular, the ETF Amplify Transformational Data Sharing (BLOK) is an option.
While the majority of the fund (75%) contains holdings in companies based in North America, the fund also adds a touch of diversification with holdings in Western Europe and Asia-Pacific. This gives the fund exposure to overseas growth opportunities where blockchain technology could be fully utilized.
As mentioned, the fund exhibits an active management strategy that can adapt to market movements by placing assets in the hands of experienced portfolio managers. BLOK adds diversified exposure and exposure to cryptocurrencies without investing in the currencies themselves.
The fund invests in partner companies or invests directly in companies using and developing blockchain technology, which is the technology behind cryptocurrencies like bitcoin.
Summary of BLOK functionalities according to its product website:
- Global equity portfolio of professionally selected companies involved in blockchain technology and indirect exposure to crypto.
- An active management approach that could allow the fund to remain flexible, make timely decisions, and identify companies best positioned to take advantage of the developing blockchain technology space.
- Convenience and transparency of the ETF structure.
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