While the cryptocurrency fallout from the collapse of digital currency exchange FTX might be roiling the markets, financial firms are moving on undeterred, continuing to explore ways to use blockchain technology.
It’s been a long winter for digital currencies, which have followed stocks and bonds for most of the year, and the latest sell-off pressure from the FTX debacle stifled a potential year-end rally. The hope is that a rally could re-establish itself once the dust settles, but financial firms are moving on nonetheless.
“While the crypto world descends into chaos, dedicated teams inside financial services firms continue quietly going about their business, rolling out blockchain-based products that are solving real-life problems for customers,” a explained. “Some amazing things happen when the technology that was used to create cryptocurrencies is applied to actual business challenges.”
The finance world has been one of the early adopters of blockchain technology, using the underpinnings of cryptocurrency in order to facilitate transactions with more efficiency. From the higher security to ledger-based transactions for easier data interpretation, financial firms have been reaping 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 the blockchain,” the article added. “The industry started investing huge amounts to find new opportunities to apply the technology.”
As more investment dollars pour into the blockchain network, it opens opportunities from a retail investment standpoint in the capital markets. Exchange traded fund (ETF) investors in particular can look at the Amplify Transformational Data Sharing ETF (BLOK ).
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 the U.S.
While the majority of the fund (75%) contains holdings in North America-based companies, the fund also diversifies with holdings in Western Europe and Asia-Pacific, investing in companies utilizing and developing blockchain technology, the technology behind cryptocurrencies like bitcoin. This allows the fund to gain exposure to growth opportunities abroad where this technology can be utilized to its fullest extent.
Per its , BLOK features:
- A 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.
- The convenience and transparency of the ETF structure.
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