With the rising popularity of blockchain technology, the question in most minds today is that how making an investment in it is going to help them. Also, what is the right way to go about it?
As blockchain has become one of the most appealing and discussed topics around the world, it is legitimate for you to be curious about its future possibilities and how it can be a catalyst in your future financial growth. Presently, there are blockchain specialists who can help you learn about blockchain technology the easy way. They explain you the potential of this highly talked about technology and what sectors it can be beneficial for.
Should We Invest in Blockchain Technology?
If we speak from an investment point of view, in the present scenario, investors who wish to make money out of blockchain technology should invest in well-renowned companies who have found the ways to earn revenues from it and are engaged in constructing systems that will help them draw more revenues out of it in the coming years. As it is evident that various top companies of the world are trying to associate themselves with the word “blockchain” and are finding ways to monetize it.
As blockchain is on its way to becoming a massive phenomenon, everyone seems to be wanting a piece of it & the ETF world is not far behind to follow the trend. Recently we saw three blockchain funds brought to the market known as The Amplify Transformational Data Sharing (BLOK) fund by Amplify ETFs,The Reality Shares Nasdaq NextGen Economy (BLCN) ETF by Reality Shares and Innovation Shares NextGen Protocol ETF (KOIN) by Innovation Shares.
The Potential of Blockchain Technology
The strength and potential of blockchain was quite evident when Amplify ETFs and Reality Shares went from $2.5 million in seed funding to $40 million practically overnight. Also, both have over $120 million in assets under management in less than two trading weeks.
The three ETR’s mentioned above use different approaches to find companies with authentic ties with blockchain. They make it simpler for the retail investors to take advantage of the new technology, without having to go through the venture capital way or invest in extremely risky initial coin offering of different companies.
Who are Involved in Blockchain Technologies
Reputed enterprises that are involved in blockchain technologies like IBM & Intel are being held by one or the other of these three ETR’s. KOIN and BLOK both own NVIDIA, that makes semiconductors to power the Bitcoin miners. Also, Overstock, who is getting 80% of its revenue and earnings from blockchain today, along with Japanese investment bank SBI, IBM are owned by The Reality Shares Nasdaq NextGen Economy (BLCN) in common with Amplify.
Innovation Shares tracks blockchain technology companies and puts them in a proprietary index called the Blockchain Innovators Index. They use machine learning to pull keywords out of a search tool to find companies having connections to blockchain. Most companies are from U.S. & China. Similar is the case with Reality shares.
Investors trying to select one ETF over the other prefer making a call on the approach, not the blockchain technology companies in the fund. It is predicted that the three ETR’s will hit a billion dollars this year & probably one of them will be the lucky owner of a $1 billion blockchain fund.