Blockchain technology will continue to grow exponentially in the coming years, with some estimates reaching over $67 billion over the next four years.
While the private banking and finance sectors started leveraging technology early on, there is room for growth in the public finance sector as well. This is not a trend that is happening in any specific country, but all regions of the world are tinkering with the use of blockchain in their own public financial systems.
“Innovations such as blockchain allow public finance managers to have greater visibility and control over the use of public funds in real time. The efficient use of public money will lead to the improvement of services for the public, to economic recovery and to the betterment of the community as a whole”, said HashCash Consultants chief Raj Chowdhurywho has had experience with the use of blockchain in public finance in other countries like India and regions like Latin America.
Given the growth potential of blockchain technology, investors may want to get on the ground floor with exchange-traded funds (ETFs) that focus on this disruptive opportunity not just in finance, but in all business sectors. Thus, active management ETF Amplify Transformational Data Sharing (BLOK) is an option to consider.
Global blockchain exposure
As mentioned, BLOK features an active management strategy that can adapt to market movements by placing holdings in the hands of seasoned portfolio managers. BLOK adds diversified exposure and exposure to cryptocurrencies without investing in the currencies themselves.
Given the growing adoption of blockchain overseas, global exposure adds a touch of diversification to portfolios. This is exactly what BLOK is doing by reviewing opportunities outside of the United States.
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.
The fund invests in partner companies or invests directly in companies using and developing blockchain technology, 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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