BLOK- An ETF To Bet On Blockchain

gold-colored Bitcoin

Instead of investing directly in digital currencies, I’d like to recommend investing in actively managed exchange-traded funds (ETF) that engage in the development and utilization of blockchain technology.

Blockchain technology is not the same as digital currency, but offers an exciting new way to store data from sales and the purchases of cryptocurrencies, stocks, real estate and other assets.

Amplify Transformational Data Sharing ETF (BLOK) is an exchange-traded fund that does just that.

The fund is made up of 55 holdings, mostly operating within the software & services, diversified financials and media & entertainment industries.

The expense ratio is only 0.7%. Assets under management are $536 million. It got started three years ago in January 2018.

The top three holdings are MicroStrategy Inc. (MSTR), a provider of enterprise software platforms; Marathon Patent Group Inc. (MARA), a digital asset technology company; and Silvergate Capital Corp. (SI), a bank holding company whose subsidiary, Silvergate Bank, provides financial infrastructure solutions to participants in the digital currency industry.

It also has a strong position in Square (SQ) and PayPal (PYPL), both of which now accept Bitcoin as payment.

MicroStrategy CEO Michael Saylor recently told CNBC that he sees Bitcoin’s market value reaching $100 trillion one day. This is a bold call that predicts a 100x increase.

Let’s add Amplify Transformational Data Sharing ETF to our portfolio and set a protective stop of $44 a share.

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