Amid hope and speculation that a spot bitcoin exchange traded fund will soon come to market in the U.S., some investors are renewing their enthusiasm for cryptocurrencies. They might not want to lose sight of the blockchain investment thesis.
That’s accessible via select exchange traded funds, including the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC). In fact, BLKC, which follows the Alerian Galaxy Global Blockchain Equity, Trusts and ETPs Index, is a pertinent idea for investors seeking growth and that’s true regardless of goings on on the crypto regulatory front.
Supporting the longer-ranging case for BLKC is the point that blockchain’s utility includes both cryptocurrency and other technological pursuits. Importantly, blockhain is often a foundational piece for some disruptive technologies. Take the case of the blockchain identity management market. According to Research and Markets, that’s merely a $798 million market today, but it could become a $36.5 billion segment in 2028.
Blockchain Identity Management Could Be Boon for BLKC
Currently, blockchain identity management isn’t grabbing many headlines, but as highlighted by the growth forecast above, it could be a catalyst for BLKC over the next several years.
“Blockchain identity management is a transformative process that offers a decentralized and secure solution for real-time information verification of individuals or entities through distributed trust mechanisms. It establishes a tamper-proof and trusted medium for distributing asymmetric verification and encryption keys to identity holders, simplifying processes and enhancing security,” notes Research and Markets.
Importantly, blockchain identity management has applications across multiple industries, including automotive, banking and other financial services, healthcare, technology and more. That implies a potentially expansive growth field for this concept and one that could fuel long-term gains for BLKC.
The catalysts for broader blockchain identity management are in place and they could augur well for assets such as BLKC. Those include, the need for better cybersecurity, government support and ongoing adoption of advanced mobile devices.
“The increasing frequency of cyber-attacks and data breaches targeting private companies and government organizations worldwide is propelling the demand for effective identity management solutions. Organizations seek robust models to ensure regulatory compliance and monitor employee activities,” observes Research and Markets. “The growing sales of smartphones, particularly in developing economies, and the widespread proliferation of the internet are contributing to market growth.”
The research firm highlights several publicly traded companies, including some BLKC member firms, that could drive blockchain identify management growth. Those include Dow components International Business Machines (NYSE: IBM) and Microsoft (NASDAQ: MSFT) as well as Oracle (NYSE: ORCL).
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