Blockchain technology, the companies behind it, and the cryptocurrency universe often link together. However, as blockchain’s usage case evolves, more corporations and investors realize that this industry is about much more than digital currencies.
Over the long term, that could prove to be good news for exchange traded funds such as the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC). The Invesco ETF debuted in October 2021, indicating it endured the crypto winter of 2022, but better things could be in store for the fund because blockchain adoption is on the rise.
A recent survey by Coinbase Global (NASDAQ: COIN), the largest crypto exchange operator and itself a top-10 holding in BLKC, suggests as much.
“More than half—52%—of the Fortune 100 have pursued crypto, blockchain or web3 initiatives since the start of 2020, according to the enclosed research conducted in partnership with The Block. About 60% of Fortune 100 initiatives reported since the start of 2022 have been either in the pre-launch stage or already launched,” according to the Coinbase study.
There are more details in the survey that could portend a bright future for some BLKC member firms. For example, more than eight in 10 Fortune 500 executives say their firms are familiar with blockchain or crypto and are planning investments in those areas.
More Encouraging Signs for BLKC Holdings
Add to that, close to two-thirds of the Fortune 500 executives queried by Coinbase said they view blockchain technology as essential to staying ahead of competitors.
“Blockchain is the heart of corporate innovation: data collection/management (for both customer and internal data) is a top current use case and also the focus of the most planned initiatives among the Fortune 500, with 77% of the surveyed executives agreeing that blockchain could help make the financial system work better for everyone,” added Coinbase.
In terms of sector-/industry-level adoption of blockchain, tech, financial services, and retail companies are currently driving that charge, according to the survey. Tech and financial services stocks combine for 62% of the BLKC portfolio.
Blockchain’s importance in the evolution of Web3 is another point that could favor BLKC over the long term. Currently, the U.S. is missing out on Web3 jobs because related regulations aren’t sturdy enough. Blockchain could help ameliorate that situation.
U.S. “share of global web3 development already has dropped from 40% to 29% in the last six years, forfeiting influence over global financial and data standards and pushing innovation and investment overseas—even as 73% of the Fortune 500 executives say that for crypto, blockchain or web3 initiatives, their company would prefer working with a US-based partner,” concluded Coinbase
For more news, information, and analysis, visit the Crypto Channel.
VettaFi LLC (“VettaFi”) is the index provider for BLKC, for which it receives an index licensing fee. However, BLKC is not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing or trading of BLKC.