The bullish cryptocurrency run in 2021 masked the underlying technology, blockchain, which is poised to gain in 2022 as crypto volatility shakes investors.
Last year saw bitcoin and ether both reach all-time highs before a year-end sell-off ensued. Overall, the cryptocurrency space saw a mass influx of new investors looking to cash in on the crypto craze.
As such, many investors blindly poured capital into tokens without really doing any deep research other than recommendations from friends or social media influence. This year, investors could be more discerning.
“The year 2021 will be remembered as the year in which investors began putting their money into native tokens of projects without doing any due diligence on the business model and long-term viability of such projects,” a Finextra article says. “It’s possible that by 2022 the dust will have settled, as more investors will be ready to consider a project’s long-term viability when making investment decisions.”
One solid investment decision is to focus squarely on blockchain technology. The tech is already permeating multiple business sectors that extend beyond disruption in the payments space.
“Several large corporations are making significant investments in blockchain technology, including Google, Visa, and Deloitte,” the article adds. “Blockchain-based services are being developed by a number of multinational organizations, including Spotify to manage copyrights and IBM to offer monitoring systems for shipping and retail chains.”
A Pair of Blockchain ETF Options
One ETF to capitalize on the growing trend of the multi-chain is the Invesco Alerian Galaxy Crypto Economy ETF (SATO). Voyager Digital comprises one of SATO’s top holdings, which include various companies that operate within the crypto space.
SATO will aim to track the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity, Trusts & ETPs Index and provide exposure to companies participating in both the cryptocurrency and blockchain spaces, including businesses such as cryptocurrency miners, cryptocurrency infrastructure technology developers, and cryptocurrency buyers.
Another option is the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC). Per its fund description, BLKC will aim to track the Alerian Galaxy Global Blockchain Equity, Trusts & ETPs Index.
The index is comprised of stocks of companies that are materially engaged in the development of blockchain technology, cryptocurrency mining, cryptocurrency buying, or enabling technologies, exchange traded products (ETPs), and private investment trusts traded over-the-counter that are linked to cryptocurrencies. The fund comes with a 0.60% expense ratio.
For more news, information, and strategy, visit the Crypto Channel.