Financial firms continue to explore blockchain despite crypto fallout
While the cryptocurrency fallout from the collapse of digital currency exchange FTX could disrupt markets, financial firms are moving forward undeterred, continuing to explore ways to utilize blockchain technology.
It’s been a long winter for digital currencies, which have tracked stocks and bonds for most of the year, and the latest selling pressure from the FTX debacle has snuffed out a potential year-end rally. The hope is that a rally can recover once the dust settles, but financial companies are moving forward nonetheless.
“As the crypto world descends into chaos, dedicated teams within financial services firms quietly continue to go about their business, deploying blockchain-based products that solve real customer problems,” said one. Forbes Article Explain. “Amazing things happen when the technology that has been used to create cryptocurrencies is applied to real business challenges.”
The world of finance was an early adopter of blockchain technology, using the foundations of cryptocurrency to facilitate transactions with greater efficiency. From increased security to ledger-based transactions for easier data interpretation, financial firms have reaped the potential benefits of blockchain.
“Although cryptocurrencies were the first major use case to emerge using DLT, financial service providers quickly recognized the transformative potential of blockchain,” the article adds. “Industry has started investing huge sums to find new opportunities to apply the technology.”
Invest in Blockchain with this ETF
As more and more investment dollars flow into the blockchain network, this opens up opportunities from a retail investment perspective in capital markets. Investors in exchange-traded funds (ETFs) in particular can watch 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. 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 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 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.
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