Blockchain technology will continue to experience exponential growth in the coming years, with certain estimates coming in at over $67 billion within the next four years.
While the private banking and finance sectors have started to leverage the technology early, there’s also room for growth in the public finance sector. It’s not a trend that’s occurring in a specific country, but all parts of the globe are tinkering with blockchain usage in their own public financial systems.
“Innovations such as blockchain empower public finance managers with greater visibility and control of public fund utilization in real-time. Efficient use of public money will lead to improved services for the public, economic boost, and improvement of the community as a whole,” said HashCash Consultants’ chief Raj Chowdhury, who has had experience with blockchain usage 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 in on the ground floor with exchange traded funds (ETFs) that focus on this disruptive opportunity in not just finance, but all business sectors. As such, the actively managed Amplify Transformational Data Sharing ETF (BLOK) is an option to consider.
Global Blockchain Exposure
As mentioned, BLOK features an active management strategy that can flex with the market’s movements by putting holdings in the hands of seasoned portfolio managers. BLOK adds diversified exposure and cryptocurrency exposure without investing in the currencies themselves.
Given blockchain’s increasing adoption overseas, getting global exposure adds a touch of diversification to portfolios. BLOK does just that by looking at opportunities outside just the U.S.
While the majority of the fund (75%) contains holdings in North America-based companies, the fund also adds a touch of diversification with holdings in Western Europe and Asia-Pacific. This allows the fund to gain exposure to growth opportunities abroad where blockchain technology could be utilized to its fullest extent.
The fund invests in companies partnered with or directly investing in companies utilizing and developing blockchain technology, the technology behind cryptocurrencies like bitcoin.
Summary of BLOK’s features per its product website:
- Global equity portfolio of professionally selected companies involved in blockchain technology and indirect crypto exposure.
- An active management approach that could enable the fund to remain flexible, make timely decisions, and identify companies that are best positioned to profit from the developing blockchain technology space.
- Convenience and transparency of the ETF structure.
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