Moviegoers can now use cryptocurrencies like bitcoin and ether at AMC Theatres, expanding the use of digital currencies by businesses in order to reach crypto-savvy customers.
AMC Theatres CEO Adam Aron tweeted that in addition to the top two leading cryptocurrencies, other alt coins can be accepted as payment. This includes bitcoin cash and litecoin, as well as digital payment platforms like Apple Pay, Google Pay, and PayPal.
As more businesses start to use cryptocurrencies, this paves the way for opportunities for exchange traded funds (ETFs). Digital assets held in an ETF wrapper can help mute the price volatility that comes with cryptocurrencies.
Getting Blockchain Exposure
As opposed to investing directly in cryptocurrencies, investors can get exposure to its underlying technology: blockchain. One way is via an ETF like the Amplify Transformational Data Sharing ETF (BLOK).
BLOK seeks to provide investors with total return. The fund is an actively managed ETF that seeks to provide total return by investing at least 80% of its net assets (including investment borrowings) in the equity securities of companies actively involved in the development and utilization of transformational data-sharing technologies.
An active management strategy allows for dynamic exposure to blockchain opportunities, putting the allocation in the hands of professionals. So far, the fund has been a stellar performer, rising close to 80% year-to-date.
An ETF With AMC Exposure
ETF investors looking for a backdoor play on cryptocurrencies can piggyback off of companies that are incorporating the digital currencies into their core business processes like AMC. AMC comprises about 4% (as of November 11) of the SoFi Social 50 ETF (SFYF).
SFYF tracks an index of 50 U.S.-listed stocks most widely held in self-directed brokerage accounts of SoFi Securities based on highest weighted average value. The fund is up 50% for the year.
“SFYF pursues the wisdom of the crowd approach, as securities that comprise the index are selected based on the individual holdings of investors with self-directed brokerage accounts at SoFi Securities,” the fund’s website notes. “Stocks meeting minimum trading liquidity requirements over one-month and six-month periods are eligible for consideration. ETFs and other investment companies are not eligible.”
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