Blockchain is already making transformative changes in the finance sector, and it only makes sense that this spills over into real estate finance. The blockchain network could essentially reshape the way real estate purchases are transacted.
Real estate financing could be a painstaking process that involves strict underwriting requirements, which could make for tedious conditions that must be met prior to funding a real estate loan. However, the use of blockchain technology could make the process more expedient.
“Using NFT smart contracts and remote meetings, real estate purchases can happen in minutes, not months, with investments agreed upon and underwritten with a few clicks on a smartphone,” a Forbes article explained.
Various companies are already developing platforms to make real estate transactions more efficient. This, in turn, offers tremendous growth opportunities for the blockchain network to expand and proliferate, which opens investment options in exchange traded funds (ETFs) that focus on the blockchain.
“Propy, a U.S. real estate platform specialising in blockchain and NFT, delivered the first official property sale using blockchain technology in 2021,” Forbes noted. “While still in its relative infancy, the company is making significant progress, overcoming the legal teething problems and developing a usable system to define how the new era of real estate sales and transfers will operate.”
Capture Growth With This Active ETF
One opportunity worth considering as the blockchain starts to permeate into other business sectors like real estate is the Amplify Transformational Data Sharing ETF (BLOK). BLOK features an active management strategy that can flex with the market’s movements by putting holdings in the hands of seasoned portfolio managers.
Overall, BLOK adds diversified exposure and cryptocurrency exposure without investing in the currencies themselves. Additionally, the fund offers diversification abroad by looking at opportunities outside the U.S.
While the majority of the fund (75%) contains holdings in North America-based companies, the fund also diversifies with holdings in Western Europe and Asia-Pacific, investing in companies utilizing and developing blockchain technology, the technology behind cryptocurrencies like bitcoin. This allows the fund to gain exposure to growth opportunities abroad where this technology can be utilized to its fullest extent.
Per its product website, BLOK features:
- A 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.
- The convenience and transparency of the ETF structure.
For more news, information, and strategy, visit the Crypto Channel.