With Western sanctions against the country of Russia, its leadership is looking to blockchain technology as a way to shore up the global financial system.
“The technology of digital currencies and blockchains can be used to create a new system of international settlements that will be much more convenient, absolutely safe for its users and, most importantly, will not depend on banks or interference by third countries," said Russian president Vladimir Putin at an event hosted by Sberbank, the largest Russian bank and a major lender to the government, as reported by Cointelegraph.
“I am confident that something like this will certainly be created and will develop because nobody likes the dictate of monopolists, which is harming all parties, including the monopolists themselves,” Putin added.
Of course, the comments have some geopolitical tones that are advantageous to the country, but it also underscores the global reach of blockchain technology. For investors looking to shore up their portfolios for growth opportunities in 2023 and beyond, blockchain-focused funds are an option to consider.
The Flexibility of Active Exposure
In an uncertain market such as now, it’s imperative to have some flexibility. That means having the ability to change positions in the market when conditions deem it necessary, which can be achieved using active management via exchange traded funds (ETFs) like the Amplify Transformational Data Sharing ETF (BLOK ).
As mentioned, BLOK features an active management strategy that can flex with the market’s movements by putting holdings in the hands of seasoned portfolio managers. BLOK adds diversified exposure and cryptocurrency exposure without investing in the currencies themselves.
Given blockchain’s increasing adoption overseas, getting global exposure adds a touch of diversification to portfolios. BLOK does just that by looking at opportunities outside the U.S.
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, the technology behind cryptocurrencies like bitcoin. This allows the fund to gain exposure to growth opportunities abroad where this technology can be utilized to its fullest extent.
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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