There’s a plethora of analytics available that can assess the strength of blockchain network activity, but there’s one metric that might be overlooked: developer activity.
“You can measure blockchain growth in different ways,” an Altcoin Buzz article said. “Popular metrics are the number of users, TVL, or the number of transactions. And indeed, you can get a lot of information from these stats. However, developer activity is another factor to look for.”
Much like the stock market needs the volume of active buyers and sellers, the blockchain network relies on developer activity to thrive. Using this metric, exchange traded fund (ETF) investors can add this to their arsenal of tools when assessing a fund for potential investment.
“A blockchain that lacks developers, will simply not grow,” the article added. “As a result, developer activity is one of the most important factors for blockchain growth.”
— Bitcoin Market Journal (@BitcoinMktJrnl) July 8, 2022
Diversified, Blockchain Exposure in 1 ETF
Blockchain-focused 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 11, 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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