Blockchain ETF’s top holding has been a strong outperformer
The rapid rise of blockchain technology has been evident over the past couple of years, but one stock in particular has been a strong outperformer relative to major stock market indices such as the S&P 500. Research firm MicroStrategy, one of the top holdings in the Amplify Transformational Data Sharing ETF (BLOK)are worth mentioning.
Large cap or small cap indices, MicroStrategy (MSTR) has underperformed all market caps when it comes to pure gains. It did particularly well during the cryptocurrency bull run of 2021 and remains a strong performer despite this year’s crypto correction.
“In particular, MSTR has recorded returns of 158.65% over 728 days,” noted a Finbold article. “Compared to the Russell 2000 index, which includes the smallest 2,000 companies, MicroStrategy has recorded a return of 25.17%, while the S&P 500 trails the MSTR at 27.40%. Interestingly, the stock’s return compared to Bitcoin is 98.28 %.”
Adopting Bitcoin ahead of the 2021 rally was a catalyst that boosted its performance over the past couple of years. Bitcoin rose to a high near $70,000 in late 2021 before falling back to earth this year.
“It is worth noting that MicroStrategy’s decision to adopt Bitcoin in 2020 was instrumental in triggering a crypto market rally that extended towards the end of last year,” the article further added.
Active, diversified blockchain exposure
There are a plethora of options available to investors looking to gain blockchain exposure, whether it’s looking at individual stocks or other funds. One of the discerning features of BLOK is its active management strategy that can flex with the movements of the market by placing its holdings in the hands of experienced portfolio managers.
With 50 holdings as of August 10, BLOK adds diversified exposure 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.
Summary of BLOK’s features 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.
For more news, information and strategy, visit Crypto channel.
