While hailed for its disruptive benefits in facilitating payment transactions for goods or services, blockchain technology is simply not relegated to financial technology (fintech). Social advocacy groups are also leveraging blockchain to advance their own causes.
Ukraine is a good example of how advocacy groups are using blockchain (in this case cryptocurrency). An outpouring of support led to bitcoin donations during Russia’s initial invasion of Ukraine earlier this year, highlighting the use cases for cryptocurrency beyond a speculative investment or store of value mechanism.
“Ukraine aid, the fight for reproductive rights and efforts to reverse the effects of climate change have a surprising common theme: They are all being helped by groups using blockchain to rally support,” a CNET article said.
A byproduct of blockchain technology is the increased use of decentralized autonomous organizations (DAOs). DAOs allow the creation of an organizational structure that is free from central oversight, but is instead governed by users within the blockchain network – the use of DAOs results in versions of non-profit organizations.
“Consider it the blockchain version of a non-profit organization,” the article further added. “Impact Decentralized Autonomous Organizations, or DAOs, use crypto tools as a source of public good and an alternative way to support social causes.”
With the use of blockchain technology still in its infancy, it opens the way for a plethora of opportunities for investment. The question now is how investors can get this level of exposure.
Because there are many ways to gain blockchain exposure, an investor can easily get lost in the sheer number of opportunities available. As such, an exchange-traded fund (ETF) that sets diversification as part of its core strategy can provide investors with balanced exposure without overconcentration; Consider Strengthen transformational data sharing ETF (BLOCK ).
With 50 shares as of 29 July, BLOCK adds diversified exposure and cryptocurrency exposure without investing in the currencies themselves. As mentioned, BLOCK 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.
“The leaders are focusing on how companies can capture the growth, innovation and disruption of the blockchain paradigm shift,” Amplify noted. “The development of the internet has changed the way people communicate. We believe growth companies that embrace blockchain evolution will capture secular growth trends that accelerate and disrupt core business processes.”
Key features of the fund according to the 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 openness of ETF structure.
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