Long-Term Blockchain Bets Could Be Rewarding | ETF Trends

Critics and some investors may debate the usage case of cryptocurrency among professional market participants and high-ranking financial executives. However, many pros see utility and value in blockchain technology.

Ripple’s new “2023 New Value Report: Crypto Trends in Business & Beyond” suggested as much, indicating there are compelling long-term implications for blockchain technology itself as well as its adopters and purveyors. That could prove to be good news for exchange traded funds such as the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC).

Eighty-eight percent of the survey’s respondents were bullish on the prospects of increasing blockchain adoption, signaling they expected the rapidly evolving technology to affect their businesses in some fashion over next three years.

“Over half of global respondents cite already having a cryptocurrency solution in place at their company, or are in the process of implementing one,” according to the Ripple research. “Upwards of three-quarters indicate an openness to using or exploring other crypto technologies over the next few years (e.g. CBDCs, stablecoins, NFTs, etc.).”

BLKC Has Right Mix

BLKC, which turns two years old in October, is home to 56 holdings, including the Grayscale Bitcoin Trust (GBTC). Among the ETF’s traditional equity holdings are companies with various forms of exposure to the cryptocurrency ecosystem, including blockchain. That’s a pertinent trait at a time when more firms are awakening to the efficiencies of crypto payments.

“Ease of use is far and away the most important requirement for organizations to enable customers to pay with crypto,” added Ripple. “Faster payments/settlement times and cost savings are the biggest value propositions for incorporating crypto into cross-border payments for enterprises and payments/treasury professionals at financial institutions – regardless of region and level of familiarity with crypto.”

Integral to the blockchain thesis is the technology’s evolution — which various BLKC member firms tap. Early blockchain adopters could expect to benefit more from this technology than suffer because of it.

On that note, Ripple’s research indicated that the next wave of evolution in the blockchain and crypto spaces is likely to be more about improvement and less about defeating entrenched, traditional financial services firms. In fact, the case for corporate adoption of blockchain and crypto is crystalizing in positive form.

“Over half of payments and treasury leaders agree that faster payments/settlement times and cost savings are the biggest value propositions for incorporating crypto into their cross-border payments business,” concluded Ripple.

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