Getting blockchain exposure doesn’t mean investors are automatically tied to getting direct cryptocurrency exposure as a packaged deal. While the cryptocurrency markets have fluctuated wildly with volatility, believers in blockchain technology are preaching resilience.
Cryptocurrencies have followed stocks and bonds into bear market territory for the first half of 2022 as a result of inflation and recession fears. However, the underlying technology of cryptocurrencies, blockchain, still has use cases that are isolated from the crypto market’s roller coaster ride.
Even with the latest crypto decline, it can be seen as somewhat of an industry cleansing by experts who operate in the digital asset space. It’s similar to the survival of the fittest after the DotCom bubble.
“I’m more optimistic on crypto than ever before,” said Jason Yanowitz, a co-founder of Blockworks, a financial media company.
“That’s the period we’re in now; we’re wiping away the greed and exuberance from the market,” Yanowitz wrote in an email.
Getting Active Blockchain Exposure
In today’s volatile market, one way to get blockchain exposure while mitigating the market fluctuations is via an active management strategy that’s inherent in certain exchange traded funds (ETFs). One such fund is the Amplify Transformational Data Sharing ETF (BLOK ).
Active management can go a long way, especially in today’s market that’s being heavily swayed by volatility due to inflation and recession fears. With professional management and the ability to get in or out of positions quickly, BLOK can help assuage investors’ fears in today’s volatile market environment.
The fund invests in companies partnered with or directly investing in companies utilizing and developing blockchain technologies. However, the fund does not invest directly in blockchain technology or cryptocurrencies.
Highlights of BLOK:
- Access to companies involved in blockchain technology and indirect crypto exposure.
- Active management allowing ETF to make timely decisions and assess opportunities and risks in this fast-developing space.
- Convenience and transparency of the ETF structure.
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