The Amplify Transformational Data Sharing ETF (BLOK) was the first ETF related to blockchain to launch back in 2018, investing in the innovation and potential that the space provides. Now, as the crypto space grows in leaps and bounds and expands into more areas, BLOK continues to stay at the forefront of innovation, seen most recently in its acquisition of two innovative banks that are offering crypto solutions for traders and exchanges, as reported in the November newsletter.
In the month of November, BLOK added positions in both Signature Bank and Customers Bancorp, two banks on the edge of innovation that offer services for crypto. Signature Bank offers a real-time payment system similar to what Silvergate Capital is known for and has gotten big doing, but it offers a wider variety of banking options.
Signature Bank offers its digital payment platform, called Signet, which utilizes blockchain technology to allow clients to make payments in U.S. dollars at any time of the day or night. Those payments settle in real time, do not incur transaction fees, and allow more flexibility than a standard bank that is only open during business hours.
Customers Bancorp, under its subsidiary branch Customers Bank, is one of the first banks in the country to welcome institutional crypto clients and institutions. The bank uses its own token for transacting between commercial customers using blockchain technology to offer real-time payments as well.
“We believe that the financial service industry is ripe for blockchain innovation and crypto platform solutions, which can be separate and one in the same,” write Dan Weiskopf and Mike Venuto, co-portfolio managers of BLOK, in the newsletter.
Signature Bank has joined the S&P 500 as of mid-month and has a long history of technological innovation.
“We highlight the addition of Signature Bank to the S&P 500 as an important accomplishment of a bank that has been innovating for decades. Innovation does not come without risk, and our 20 years of experience in ETFs has taught us that business operators and investors must be thinking about where the ‘hockey puck’ is going over the long term, not just where it is currently,” Weiskopf and Venuto write.
Investing in Blockchain Innovation With BLOK
The Amplify Transformational Data Sharing ETF (BLOK), which currently has $1.3 billion in AUM, is actively managed and invests in companies directly involved in developing and using blockchain technology. BLOK was also the first blockchain ETF approved by the SEC and launched in 2018.
The fund invests in companies partnered with or directly investing in companies utilizing and developing blockchain technologies. However, the fund does not invest directly in blockchain technology or cryptocurrencies.
BLOK spreads its holdings across the size spectrum, investing in all market caps. As of the end of September, top allocations within the blockchain industry included transactional at 30.0%, crypto miners at 28.0%, and venture at 10%. BLOK invests across the blockchain landscape, in miners, exchanges, and developers.
Top holdings include Nvidia Corp (NVDA) at 5.95%, Coinbase Global Inc. (COIN) at 5.59%, and Silvergate Cap Corp (SI) at 5.01%.
BLOK has an expense ratio of 0.71% and currently has 50 holdings.
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