Given a strong dollar combined with a lot of economic uncertainty around rising inflation and a potential recession, investors may be hesitant to jump into emerging markets (EM). However, blockchain technology could be making EM countries more investable in terms of locating opportunities that could propel long-term growth.
“International investors do not understand or trust local company structures,” wrote Geoffrey See, CEO of Poko, which is a startup that allows users to launch and manage decentralized autonomous organizations (DAOs) as well as blockchain companies. “Investors are uninterested and fearful when it comes to investing in companies registered out of Colombia, Vietnam, Nigeria or Pakistan.”
As mentioned, EM countries could give investors ground floor exposure on where the next big opportunity could be in blockchain technology. They could also pave the way for startup companies to live out their entrepreneurial ventures and take them to the next level via blockchain.
“For countries at the frontiers of startup ecosystems, blockchain elements give startups access to markets and a financial ecosystem on a global scale,” See added.
Diversified, Blockchain Exposure in 1 ETF
Exchange traded funds (ETFs) can give investors exposure to blockchain opportunities via one dynamic and diversified investment vehicle using an active management strategy that could mitigate risk, which is something to keep in mind for hesitant investors. One fund that can do all this is the Amplify Transformational Data Sharing ETF (BLOK ).
With 49 holdings as of July 1, 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.
Features of BLOK 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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