The latest cryptocurrency fallout from the FTX collapse may incorporate blockchain into the toxic mix. However, blockchain technology can work in an exclusive way, which still allows for future benefits in the future.
The “crypto winter” could be long, especially after the collapse of the cryptocurrency exchange FTX. Bitcoin and other top cryptocurrencies have felt the throes of a tough 2022, and the FTX the debacle only adds to the pain.
Nevertheless, it is important to note that the underlying technology of cryptocurrencies, blockchain, can still be advantageous outside of the cryptocurrency market. The two are often intertwined, but blockchain itself can serve its purpose in a variety of industries other than the crypto market.
On the contrary, the blockchain could come out of the “crypto winter” even stronger. That said, it offers a growth component for investors looking to add to their tech portfolio and gain more diversification.
“I actually think a lot of positive things will come once the dust settles,” said Giuseppe Stuto, co-founder of 186 Ventures. “People are going to be wondering what’s worth working on and building, so there’s going to be a much more intense focus on the right areas.”
In an uncertain market, it’s good to have some flexibility. This means having the ability to change position in the market when conditions deem it necessary, which can be achieved using active management through exchange-traded funds (ETFs) like the Amplify transformational data sharing ETFs (BLOK ).
As mentioned, BLOK presents 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.
Given the growing adoption of blockchain overseas, global exposure adds a touch of diversification to portfolios. BLOK does exactly that 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 diversifies with holdings in Western Europe and Asia-Pacific, investing in companies using and developing blockchain technology, the technology behind cryptocurrencies like bitcoin. This gives the fund exposure to overseas growth opportunities where this technology can be fully exploited.
By its product website, BLOK Features:
- A global portfolio of professionally selected stocks of 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.
- The convenience and transparency of ETFs structure.
For more news, insights and strategy visit the Encryption channel.