Financial firms continue to explore blockchain despite crypto fallout

While the cryptocurrency fallout from the collapse of digital currency exchange FTX may mar the markets, financial firms are undeterred and continue to explore ways to use blockchain technology.

It’s been a long winter for digital currencies, which have trailed stocks and bonds for most of the year, and the latest selling pressure from the FTX debacle is stifling a potential annual rally. The hope is that a rally can re-establish itself when the dust settles, but financial companies are still moving forward.

“As the crypto world descends into chaos, dedicated teams at financial firms continue to quietly go about their business, rolling out blockchain-based products that solve real-world problems for clients,” a Forbes article explained. “Some amazing things happen when the technology that was used to create cryptocurrencies is applied to actual business challenges.”

The world of finance has been one of the early adopters of blockchain technology, using the foundation of cryptocurrency to facilitate transactions with more efficiency. From higher security to ledger-based transactions for easier data interpretation, financial firms have reaped the potential benefits of blockchain.

“Although cryptocurrencies were the first major use case to emerge using DLT, financial service providers quickly recognized the transformative potential of the blockchain,” the article added. “The industry started investing huge amounts to find new opportunities to use the technology.”

Invest in the blockchain with this ETF

As more investment dollars flow into the blockchain network, it opens up opportunities from a retail investment standpoint in the capital markets. In particular, exchange-traded funds (ETFs) investors can look into Amplify Transformational Data Sharing ETF (BLOK).

BLOK has an active management strategy that can flex with the market’s movements by placing the 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 utilized.

Per its product websiteBLOK Features:

• 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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