Although lauded for its disruptive benefits in facilitating payment transactions for goods or services, blockchain technology is simply not relegated to financial technology (fintech). Social impact groups are also leveraging blockchain to advance their own causes.
Ukraine is a great example of how impact groups are using blockchain (in this case, cryptocurrency). A wave of support led to bitcoin donations during Russia’s initial invasion of Ukraine earlier this year, highlighting the use cases for cryptocurrency outside of a speculative investment or store-of-value mechanism.
“Ukrainian aid, the fight for reproductive rights, and efforts to reverse the effects of climate change have a surprising common theme: they all receive help from groups using blockchain to rally support,” a post from CNET.
One of the by-products of blockchain technology is the increased use of Decentralized Autonomous Organizations (DAOs). DAOs allow for the creation of an organizational structure free from central government oversight, but are instead governed by users within the blockchain network – the use of DAOs results in versions of not-for-profit organizations.
“Think of it as the blockchain version of a nonprofit,” the article adds. “Impact’s Decentralized Autonomous Organizations, or DAOs, use cryptographic tools as a source of public good and as an alternative way to support social causes.”
With the use of blockchain technology still in its infancy, it paves the way for a plethora of investment opportunities. The question now is how investors can get this level of exposure.
Get targeted blockchain exposure
Because there are so many ways to gain exposure to the blockchain, an investor can easily get lost in the sheer number of opportunities available. As such, a traded index fund (ETF) that places diversification as part of its core strategy can give investors balanced exposure without the over-concentration; Take into account ETF Amplify Transformational Data Sharing (BLOK).
With 50 holdings as of July 29, BLOK adds diversified exposure and exposure to cryptocurrencies without investing in the currencies themselves. As mentioned, BLOK is actively managed, investing in companies in partnership or investing directly in companies using and developing blockchain technology, which is the technology behind cryptocurrencies like bitcoin.
“The leads focus on how companies can capture growth, innovation and the disruption of the blockchain paradigm shift,” Amplify noted. “The evolution of The Internet has changed the way people communicate. We believe growing businesses that embrace the evolution of blockchain will capture age-old growth trends that accelerate and disrupt the heart business process. »
Main characteristics of the fund according to its product website:
- Global equity portfolio of professionally selected companies involved in blockchain technology and indirect exposure to crypto.
- Active management approach that could allow the fund to remain flexible, make timely decisions, and identify companies best positioned to take advantage of the developing blockchain technology space.
- Convenience and transparency of the ETF structure.
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