crypto strategy

Blockchain Venture Capital Activity Surpasses 2021 Despite Difficult Year

The price of Bitcoin has fallen more than 60% this year, but despite the fallout in the vast cryptocurrency market, blockchain projects are seeing influxes of venture capital funding.

While the pace of venture capital investment has slowed in 2022 for cryptocurrencies compared to 2021, interest in blockchain has not waned. This comes despite the crypto market plummeting amid inflation and rising rates, as well as fallout from the collapse of crypto exchange FTX.

“Blockchain venture capital funding has been on a downward slope since May 2022, and November was no different, with inflows declining even more,” said one. Telegraphic article Noted. “However, total capital inflows for 2022 exceeded 2021 by nearly $6 billion.”

This could allude to the growing interest in the potential of blockchain technology outside of the cryptocurrency market. This underscores the ability of blockchain technology to function as its own mutually exclusive investment channel in addition to underpinning cryptocurrencies.

“Despite a slowdown in crypto VC funding since May, total funding for the year topped the 2021 figure,” the article adds. “Cointelegraph Research’s VC database shows that a total of $36.1 billion was raised in 2022, with less than two weeks of the year remaining. In contrast, total funds raised in 2021 was $30.3 billion. »

An avenue for blockchain technology investment

One way to get exposure to blockchain technology is through exchange-traded funds (ETFs) like the ETF Amplify Transformational Data Sharing (BLOK). BLOK offers an active management strategy that can adapt to market movements by placing assets in the hands of experienced portfolio managers.

Additionally, BLOK adds diversified exposure and exposure to cryptocurrencies without investing in the currencies themselves. Additionally, the fund provides overseas diversification by examining opportunities outside of the United States, giving investors exposure to growth opportunities in emerging and developed markets.

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. .

By its product websiteBLOK 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 the ETF structure.

For more news, insights and strategy visit the Encryption channel.

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