While bitcoin gains wider acceptance, the boom in the cryptocurrency market and growing debate over the long-term viability and investment benefits of the alternative asset have helped highlight the benefits of the rapidly evolving blockchain technology, which provides the discrete digital ledger that tracks the new digital currency transactions.
In the upcoming webcast, Investing in Blockchain: The Foundational Tech Behind Bitcoin, Christian Magoon, founder and CEO of Amplify ETFs, and Michael Venuto, co-founder & CIO of Toroso Investments, will explain how the backbone of cryptocurrencies, blockchain technology, may add value to a diversified investment portfolio and look at how blockchain technology could benefit beyond the crypto market.
For example, the Amplify Transformational Data Sharing ETF (BLOK) is one of a handful of funds that invests in blockchain technology, the technology behind cryptocurrencies like bitcoin. Transformational data sharing through innovative blockchain technology can also add value to an investment portfolio independent of cryptocurrencies’ viability and long-term benefits.
BLOK utilizes an actively managed approach to investing in the fast-developing world of blockchain-based technology, allowing the fund’s portfolio managers to respond in real-time to valuations, company fundamentals, and announcements that may impact the blockchain marketplace.
Toroso Investments serves as active sub-advisor and ETF sponsor to an ETF offered by Amplify ETFs. Toroso strives to outperform the EQM-Emerita Blockchain BLOK 50 Global Index with this strategy.
The “active management approach that we believe enables the Fund to remain flexible and identify companies that are best positioned to profit from the developing blockchain technology space,” according to Amplify ETFs.
Investors interested in innovative blockchain technology should look beyond the volatility in the cryptocurrency market and consider the merits behind the transformative technology.
Blockchain is a peer-to-peer distributed ledger that facilitates recording transactions and tracking assets for all users in a given business network. The technology derives its name from its calling card of storing transaction data in blocks linked together to form a chain.
As the number of transactions grows, so does the blockchain. Blocks record and confirm the time and sequence of transactions, which are then logged into the chain within a discrete network governed by rules agreed upon by the network participants. Although initially associated with digital commodities, it can track tangible, intangible, and digital assets and companies in all business sectors.
Financial advisors who are interested in learning more about blockchain and cryptocurrencies can register for the Wednesday, November 10 webcast here.