Despite the recent crypto fallout, Blockchain still has upside for the future

The latest cryptocurrency fallout from the FTX collapse may be to add blockchain into the toxic mix. However, blockchain technology can operate exclusively, and thus still have future upside going forward.

The “crypto winter” could be long, especially after the collapse of the cryptocurrency exchange FTX. Bitcoin and other leading cryptocurrencies have felt the pain of a rough 2022, and the FTX debacle only adds to the pain.

Nevertheless, it is important to note that the underlying technology of cryptocurrencies, blockchain, can still be useful outside of the cryptocurrency market. The two are often linked, but blockchain itself can serve its purpose in a number of industries other than the crypto market.

If anything, blockchain may come out of the “crypto winter” even stronger. That said, it provides a growth component for investors looking to add to their technology portfolio and achieve more diversification.

“I actually think a lot of positives will come when the dust settles,” said Giuseppe Stuto, co-founder of 186 Ventures. “People are going to ask themselves what is worth working on and building, so there is going to be a much more intense focus on the right areas.”

Capture active blockchain

In an uncertain market, it’s good to have some flexibility. This means having the ability to change positions in the market when conditions deem it necessary, which can be achieved through the use of active management via exchange-traded funds (ETFs) such as Amplify Transformational Data Sharing ETF (BLOK).

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

Given blockchain’s growing use overseas, global exposure adds a touch of diversification to portfolios. BLOK is doing just that by looking at opportunities outside the US

While the majority of the fund (75%) contains holdings in North American-based companies, the fund also diversifies with holdings in Western Europe and the Asia-Pacific, investing in companies that use and develop blockchain technology, the technology behind cryptocurrencies such as bitcoin. This means that the fund can gain exposure to growth opportunities abroad where this technology can be fully exploited.

According to the product website, BLOK has:

• A 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.
• The convenience and transparency of the ETF structure.

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