The use cases for blockchain technology are as pertinent in the public sector as they are in the private sector. Specifically, the use of blockchain analytics could be of benefit in making the federal sector more efficient in its own operations.
“Volume and intricacy make it nearly impossible for human operators to unravel the deeply interwoven threads of activity on a blockchain,” the Federal News Network noted. “Where the human eye cannot possibly account for the scale and complexity of transactions, analytics can paint a clear and definitive picture.”
This is where blockchain analytics can make processing copious amounts of data less difficult. As the federal sector implements more blockchain use, it could invest or call upon the services of companies that focus on this technology, thereby opening up investment opportunities.
“Machine-scale analytics are perfectly suited to drill down, organize the data, and present intelligible insights,” the Federal News Network added. “Data analytics tools make it possible to go deep into the complex web of transactions in a distributed ledger: surfacing the jumps between transactions and identifying the relationships between the potentially thousands of exchanges.”
Active Blockchain Exposure
Investors looking for active as well as 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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