With cryptocurrencies, blockchain investors are receiving renewed adulation. The lack of a Bitcoin ETF is to the benefit of funds like the Reality Shares Nasdaq NextGen Economy ETF (BLCN ).
BLCN tracks the Reality Shares Nasdaq Blockchain Economy Index. That index “is designed to measure the returns of companies that are committing material resources to developing, researching, supporting, innovating or utilizing blockchain technology for their use or for use by others,” according to Reality Shares.
The rapid rise of Bitcoin has generated fierce debate concerning the long-term viability of investing in cryptocurrencies. While rapidly evolving blockchain technology can provide a discrete digital ledger to track transactions, many advisors remain concerned with the regulation and volatility of cryptocurrency products, indicating that BLCN can be an ideal replacement strategy for clients looking to avoid some of the crypto volatility.
Betting on Blockchain: Where Does It Go from Here?
The idea of decentralized currencies goes far beyond Bitcoin and Ethereum. Today, all kinds of companies, organizations, and governments are exploring the concept of initial coin offerings, or ICOs.
Businesses and currencies exist for roughly the same purpose: to facilitate the exchange of value. Fiat currencies like the U.S. dollar are positively primitive compared with the promise of blockchain and the emerging token economy, which some technologists have taken to calling an asset operating system.
For now, there are dichotomies surrounding the blockchain thesis, though for investors willing to take on some risk, the story remains compelling.
Blockchain continues to capture investor interest as the technology gathers mainstream attention. According to the World Economic Forum, “10% of the global GDP is predicted to be stored on blockchain platforms by 2027.”
As is being witnessed in the fintech space, the COVID-19 pandemic is providing a runway for blockchain, showcasing the utility of its financial service in markets outside the United States.
BLCN “invests in the companies that are developing this truly innovative and transformational blockchain technology,” adds Reality Shares. “The blockchain ecosystem potentially presents one of the most profound, long-term investment opportunities in the market today. Furthermore, blockchain is still in its infancy, and we are confident it will have far-reaching, disruptive effects in nearly every industry.”
The fund is up almost 13% to start 2021.
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