Cryptocurrencies may be having a rough 2022, but blockchain technology is expected to thrive moving forward, according to auditing firm KPMG.
“A new report by global auditing giant KPMG predicts an upcoming slowdown in crypto investments during the second half of 2022,” The Daily Hodl reported.
“According to KPMG’s Pulse of Fintech H1’22 report, the crypto markets will continue to face challenges in the second half of the year, which should decelerate investor sentiment,” the report added further.
Cryptocurrencies have been mirroring the movements of traditional stocks and bonds for most of the year, falling amid inflation fears as more retail investment money is being replaced by institutional money. Nonetheless, with its wide array of use, blockchain technology can expect to thrive as its usage becomes more prevalent.
“Crypto and blockchain investments will increasingly focus on infrastructure. While investment in cryptocurrencies is expected to slow down further [in H2’22], there will likely be a continued focus on the use of blockchain in financial market modernization,” the KPMG report noted.
Active, Diversified Blockchain Exposure
Investors looking for active global diversification in blockchain opportunities can look to exchange traded funds (ETFs). In particular, the Amplify Transformational Data Sharing ETF (BLOK) is an option.
While the majority of the fund (75%) contains holdings in North America-based companies, the fund also adds a touch of diversification with holdings in Western Europe and Asia Pacific. This allows the fund to gain exposure to growth opportunities abroad where blockchain technology could be utilized to its fullest extent.
As mentioned, the fund features an active management strategy that can flex with the movements of the market by putting holdings in the hands of seasoned portfolio managers. BLOK adds diversified exposure and cryptocurrency exposure without investing in the currencies themselves.
The fund invests in companies partnered with or directly investing in companies utilizing and developing blockchain technology, which is the technology behind cryptocurrencies like bitcoin.
Summary of BLOK’s features per its product website:
- 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.
- Convenience and transparency of the ETF structure.
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