Audit company KPMG predicts growth in Blockchain despite challenges

Cryptocurrencies may have a rough 2022, but blockchain technology is expected to thrive going forward, according to auditing firm KPMG.

“A new report from global auditing giant KPMG predicts an upcoming slowdown in crypto investments during the second half of 2022,” The Daily Hodl reported.

“According to KPMG’s Pulse of Fintech H1’22 report, crypto markets will continue to face challenges in the second half of the year, which should dampen investor sentiment,” the report further added.

Cryptocurrencies have mirrored the movements of traditional stocks and bonds for most of the year, falling on fears of inflation as more investment money is replaced by institutional money. Nevertheless, with its wide range of uses, blockchain technology can expect to thrive as its use becomes more widespread.

“Crypto and blockchain investments will increasingly focus on infrastructure. While investments in cryptocurrencies are expected to further decline [in H2’22]there will likely be a continued focus on the use of blockchain in financial market modernization,” noted the KPMG report.

Active, diversified blockchain exposure

Investors looking for active global diversification in blockchain opportunities can look to exchange-traded funds (ETFs). Special Amplify Transformational Data Sharing ETF (BLOK) is an alternative.

While the majority of the fund (75%) contains holdings in North America-based companies, the fund also adds a touch of diversification with holdings in Western Europe and the Asia-Pacific region. This means that the fund can gain exposure to growth opportunities abroad where blockchain technology can be used to its full extent.

As mentioned, the fund has an active management strategy that can flex with the movements in the market by placing the holdings in the hands of experienced portfolio managers. BLOK adds diversified exposure and cryptocurrency exposure without investing in the currencies themselves.

The fund invests in companies that collaborate with or invest directly in companies that use and develop blockchain technology, which is the technology behind cryptocurrencies such as bitcoin.

Summary of BLOK’s features per product website:

• Global equity portfolio of professionally selected companies involved in blockchain technology and indirect crypto exposure.
• An active management approach that can enable the fund to remain flexible, make timely decisions and identify companies best positioned to profit from the evolving blockchain technology space.
• Convenience and transparency of the ETF structure.

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