While blockchain technology and cryptocurrencies are often tied together inextricably, the former can stand on its own when it comes to other applications in business. Companies like Mastercard are utilizing blockchain technology beyond the realm of cryptocurrencies.
Financial technology — fintech for short — is using blockchain technology in a wide variety of ways to revolutionize the way consumers pay for goods and services. Mastercard in particular is using blockchain to work with customers on converting cryptocurrencies into fiat currency while also helping government organizations facilitate the use of central bank digital currencies (CBDCs).
“There are many fascinating applications of blockchain that have nothing to do with cryptos,” said Raj Seshadri, president, data & services at Mastercard. “NFT is another example of blockchain. We are in the early stages of blockchain technology. There is a lot of hype around it. What is important is to identify where the long-term value and utility lie.”
From an investing standpoint, this introduces potential investors to a wealth of opportunities for growth in the blockchain sphere. As such, exchange traded funds (ETFs) that focus on blockchain offer investors this level of exposure.
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 19, 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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