Venture capital activity in Blockchain surpasses 2021 despite tough years
Bitcoin’s price has fallen by over 60% this year, but despite the fallout in the broader cryptocurrency market, blockchain projects are seeing an influx of venture capital funding.
While the pace of venture capital investment has slowed in 2022 for cryptocurrencies compared to 2021, interest in blockchain has not. This comes despite the crypto market falling amid inflation and rising prices, as well as the fallout from the collapse of the crypto exchange FTX.
“Blockchain venture capital funding has been on a downward spiral since May 2022, and November was no different, with inflows falling further,” Cointelegraph article noted. “However, total capital inflows for 2022 have surpassed 2021 by nearly $6 billion.”
This may allude to the growing interest in the potential of blockchain technology apart from the cryptocurrency market. It underscores blockchain technology’s ability to act as its own mutually exclusive avenue for investment apart from underpinning cryptocurrencies.
“Despite a decline in crypto VC funding since May, total funding for the year has surpassed the figure for 2021,” the article added. “Cointelegraph Research’s VC database shows that a total of $36.1 billion has been raised in 2022, with less than two weeks left in the year. By contrast, total funds raised in 2021 were $30.3 billion.”
An avenue for Blockchain Tech investment
One way to gain blockchain technology exposure is via exchange-traded funds (ETFs) such as Amplify Transformational Data Sharing ETF (BLOK). BLOK has an active management strategy that can adapt to market movements by placing holdings in the hands of experienced portfolio managers.
Furthermore, BLOK adds diversified exposure and cryptocurrency exposure without investing in the currencies themselves. In addition, the fund offers diversification abroad by looking at opportunities outside the US, giving investors exposure to growth opportunities in emerging and developed markets.
While the majority of the fund (75%) contains holdings in North America-based companies, the fund also diversifies with holdings in Western Europe and Asia-Pacific, investing in companies that use and develop blockchain technology.
Per its product websiteBLOK Features:
- A global equity portfolio of professionally selected companies involved in blockchain technology and indirect crypto exposure.
- An 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.
- The convenience and transparency of the ETF structure.
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