Blockchain technology has roots in cryptocurrency. As a result, it has expanded with ease into the realm of traditional finance services. That’s served the aim of expanding usage cases for the technology beyond crypto. But astute investors want more.
Fortunately, blockchain usage cases are growing at a rapid pace. That potentially signals opportunity with ETFs like the Amplify Transformational Data Sharing ETF (BLOK). The fund is home to nearly $694 million in assets under management. It could be a compelling choice for market participants taking the long view of blockchain expansion. That’s because it’s actively managed. And that flexibility could prove useful as blockchain intersects with more industries.
That’s exactly what’s happening today. Data indicates industries including agriculture, energy, information technology and telecom, and transportation and logistics as well as government are increasing blockchain exposure. And they are expected to continue doing so in the years ahead. BLOK can benefit from those trends.
Multiple Factors Backing BLOK
In theory, it’d be enough for many investors considering BLOK or blockchain equities to know government and industry are increasing use of this technology. However, it’s also worth noting why that’s the case. Among the catalysts for broader blockchain adoption are simplicity and transparency.
“By focusing on real-world case studies and actionable insights, organizations that are using data science like GE, IBM, PayPal, AWS, Uber, John Deere, NASA and others have grasped data-driven insights across various sectors and its potential to streamline operations, enhance security, and drive innovation,” reported Julie Lamb for CoinDesk.
Factors such as enhanced efficiencies and bolstered security are among the reasons global supply chains are a prime destination for increased application of blockchain tech. In fact, supply chains, as proven by Amazon, could be an epicenter of blockhain adoption. That could potentially augur well for BLOK over the long term.
“For example, AWS introduced Track and Trace with Amazon Managed Blockchain, a fully-managed service that automatically scales to meet the demands of thousands of applications running millions of transactions. Added benefits to leveraging supply chains with blockchain include scalability, cost reduction, transparency and ease of process automation,” according to CoinDesk.
In addition to simplicity and transparency, sustainability is another part of the blockchain adoption conversation. Many investors might not be apt to pair blockchain and sustainability. But the two concepts are intersecting. That could broaden the field of end users for services and technologies purveyed by BLOK member firms. CoinDesk highlighted consumer staples giant Mondelez, the company behind Oreo cookies, as one of the large firms implementing blockchain for sustainability purposes.
