Blockchain application is “far beyond cryptos,” says Mastercard
While blockchain technology and cryptocurrencies are often inextricably linked, the former can stand alone when it comes to other business applications. Companies like Mastercard are using blockchain technology outside of the realm of cryptocurrency.
Financial technology – fintech for cards – uses blockchain technology in a variety of ways to revolutionize the way consumers pay for goods and services. In particular, Mastercard is using blockchain to work with customers to convert cryptocurrencies into fiat currency, while also helping public organizations facilitate the use of central bank digital currencies (CBDCs).
“There are many fascinating applications of blockchain that have nothing to do with crypto,” said Raj Seshadri, president, data and services at Mastercard. “NFT is another example of blockchain. We are in the early stages of blockchain technology. There is a lot of hype around it. What is important is to identify where the long-term value and utility lies.”
From an investment standpoint, this introduces potential investors to a wealth of opportunities for growth in the blockchain sphere. As such, exchange-traded funds (ETFs) that focus on blockchain offer investors this level of exposure.
Diversified blockchain exposure in 1 ETF
Blockchain-focused ETFs can provide investors with exposure to blockchain opportunities via one dynamic and diversified investment vehicle 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 Amplify Transformational Data Sharing ETF (BLOK).
With 49 holdings as of July 19, BLOK adds diversified and cryptocurrency exposure without investing in the currencies themselves. As mentioned, BLOK is actively managed, invests in companies that collaborate with or invests directly in companies that use and develop blockchain technology, which is the technology behind cryptocurrencies such as bitcoin.
Features of BLOK per product website:
- 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 best positioned to profit from the evolving blockchain technology space.
- Convenience and transparency of the ETF structure.
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