When it comes to revolutionizing legacy payment systems, blockchain technology is one of the top disruptive mechanisms that investors are eyeing. That’s evident when it comes to the largest movers and shakers in the corporate arena.
According to a Pymnts article, seven of the 10 most active blockchain investors among large companies are focused on what the technology can do for payments. The article referenced Blockdata’s Most Active Investors in Blockchain Companies By the Top 100 Public Companies.
“While the firms that held venture funding rounds weren’t necessarily pure-play payments firms, their offerings included payments services,” Pymnts noted. “These are Fireblocks, Circle, FTX, Anchorage Digital, New York Digital Investment Group (NYDIG) and ConsenSys.”
While blockchain technology has permeated various industries, including financial, transportation, and healthcare, it seems that its use is still centered on the finance industry. This comes as no surprise, since blockchain technology is what underpins cryptocurrencies.
“The 10 investors that Blockdata said were the largest crypto investors are Alphabet, BlackRock, Morgan Stanley, Samsung, Goldman Sachs, BNY Mellon, PayPal, Microsoft, Commonwealth Bank and Prosus,” the article added.
Getting Blockchain ETF Exposure
Various strategies can give investors blockchain exposure if they so wish. They can take a backdoor route by investing in aforementioned technology companies that are utilizing blockchain, or they can go for a more targeted approach using exchange traded funds (ETFs) that focus on the industry.
One such fund to consider is the Amplify Transformational Data Sharing ETF (BLOK ), which features an active management strategy that can flex with the movements of the market by putting holdings in the hands of seasoned portfolio managers.
With 50 holdings as of August 12, BLOK adds diversified exposure and cryptocurrency exposure without investing in the currencies themselves. As mentioned, BLOK is actively managed, investing 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.
- 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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