The capital markets are expecting the tech industry to bounce back after a forgettable year. This offers growth prospects for investors’ portfolio, but one area they may not have considered as of yet is getting blockchain exposure.
The crypto industry may have soured the taste for blockchain this year, given its weakness after a bull run in 2021. However, blockchain opportunities can operate independently of the crypto industry, giving investors strong growth prospects for 2023 and beyond.
“Interest in Blockchain technology has been growing steadily over the last number of years as NFT technology, the Metaverse and tokenizing digital assets became part of mainstream product development strategies for major brands,” a Blocktelegraph article said. “World renowned brands like Nike, Gucci and Adidas began to explore the potential of this technology to create new loyalty within niche communities and offer existing buying immersive experiences.”
“Although the crypto industry has been plagued with turbulence in 2022, the use cases for blockchain technology have proliferated as more organizations see the potential to reform existing processes,” the article said further. “From transparent tracking of supply chains to transforming healthcare systems, the on-chain capabilities of this nascent industry are infiltrating every part of society.”
Capture Blockchain's Growth Actively
With the markets fluxing the way they have been in 2022, there’s always room for more volatility in a 2023 full of unknowns. That said, getting dynamic exposure via an active management strategy is in ideal option.
For active blockchain exposure, consider the Amplify Transformational Data Sharing ETF (BLOK ). BLOK features an active management strategy that can adapt to the market’s movements by putting holdings in the hands of seasoned portfolio managers.
Furthermore, BLOK adds diversified exposure and cryptocurrency exposure without investing in the currencies themselves. Additionally, the fund offers diversification abroad by looking at opportunities outside the U.S., giving investors exposure to growth opportunities in emerging and developed markets.
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.
Per its product website, 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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