Innovations in the finance sector, such as cryptocurrencies, could cause cracks in existing systems. Pantera Capital CEO Dan Morehead is already witnessing this, according to a Crypto Potato article.
The advent of cryptocurrencies is already adding a wave of disruption amongst traditional financial systems. That’s only going to proliferate over the next decade as blockchain technology continues to mature.
“The important thing to keep in mind is crypto is such a disruptive thing that’s going to change so many aspects of our lives in the next decade,” he said.
While 2022 hasn’t been the best year for cryptocurrencies, Morehead does see blockchain technology continuing to thrive. Moreover, the industry will become a major employer as its use becomes even more prevalent.
“I can see a world a few years from now where risk assets might still be struggling, but blockchain will be back to all-time highs based on its own fundamentals,” Morehead added. “Hundreds of millions of people use blockchain today, but I think in four-five years, it’s going to be literally billions of people, and if you have a billion people, they want to buy a fixed number of coins, so prices will probably go up.”
Active Blockchain Exposure
Investors looking for active, as well as global diversification in blockchain opportunities can look to exchange traded funds (ETFs). In particular, the Amplify Transformational Data Sharing ETF (BLOK ) is an option.
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.
As mentioned, the fund features an active management strategy that can flex with the movements of the market by putting holdings in the hands of seasoned portfolio managers. BLOK adds diversified exposure and cryptocurrency exposure without investing in the currencies themselves.
The fund invests in companies partnered with or directly investing in companies utilizing and developing blockchain technology, which is 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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