Given a strong dollar combined with a lot of economic uncertainty surrounding rising inflation and a potential recession, investors may be reluctant to jump into emerging markets (EM). However, blockchain technology can make EM countries more investable when it comes to finding opportunities that can drive long-term growth.
Blockchain increases entrepreneurship in emerging markets
“International investors do not understand or trust local corporate structures,” wrote Geoffrey See, CEO of Poko, which is a startup that allows users to launch and manage decentralized autonomous organizations (DAOs) as well as blockchain companies. “Investors are uninterested and afraid to invest in companies registered in Colombia, Vietnam, Nigeria or Pakistan.”
As mentioned, EM countries can give investors ground floor exposure to where the next big opportunity may be in blockchain technology. They can also pave the way for start-up companies to live out their entrepreneurial ventures and take them to the next level via blockchain.
“For countries bordering on start-up ecosystems, blockchain elements give start-up companies access to markets and a global-scale financial ecosystem,” See added.
Exchange traded funds (ETFs) can give investors exposure to blockchain opportunities via a dynamic and diversified investment vehicle by using an active management strategy that can reduce risk, which is something to keep in mind for hesitant investors. A fund that can do all this is Enhance transformation data sharing ETF (BLOCK).
With 49 holdings as of July 1, BLOCK adds diversified exposure and cryptocurrency exposure without investing in the currencies themselves. As mentioned, BLOCK is actively managed, 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.
Features of BLOCK per product site:
- Global equity portfolio of professionally selected companies involved in blockchain technology and indirect crypto exposure.
- Active management approach that can enable the fund to remain flexible, make timely decisions and identify companies that are best positioned to serve in the evolving blockchain technology area.
- Convenience and openness of ETF structure.
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