Blockchain opens up broader investment opportunities beyond just crypto
The blockchain industry has evolved beyond being a mere collection of cryptocurrencies. From startups to the world’s largest companies, the multifaceted potential of this groundbreaking technology is still unfolding. At the core of this innovation lies a revolutionary system that securely records a wide spectrum of transactions, making them accessible to the public. Whether it’s tangible assets like gold or real estate, conventional commodities, entire supply chains, or intangible assets such as patents and copyrights, blockchain enables swift and traceable transfers.
Blockchain infuses vitality into numerous sectors and has the potential to revolutionize and optimize them. It has the power to replace expensive processes rooted in monopolistic structures. The financial sector, in particular, is set to gain significant advantages: transactions could be processed more quickly and cost-effectively in the future, while assets change hands securely and transparently. The potential applications are manifold, and we’re just scratching the surface of this exciting development.
A selection of blockchain ETFs
As the usage of blockchain technology continues to expand, so does the number of companies involved in this domain, creating lucrative investment opportunities for those interested – whether through direct investments in companies or through broadly diversified investment products. The Global X Blockchain UCITS ETF allows investors to invest in a broad selection of up to 30 companies that generate at least 50 percent of their revenue from blockchain-related activities. These include companies like Marathon Digital, Riot Platforms, and Hut 8 Mining. American ETF specialist VanEck also provides investors with a viable alternative to buying individual stocks through its VanEck Crypto and Blockchain Innovators UCITS ETF. This ETF invests in just 20 companies that generate at least 50 percent of their revenue in digital assets. These include, for example, Germany-based Northern Data AG and Bitcoin Group SE.
Summary
In summary, blockchain technology is still in its early stages of development. This is why investors shouldn’t only focus on its potential opportunities but also avoid underestimating the market’s ever-evolving dynamics. Investing in this space – especially in individual companies – demands a keen eye and intuition. ETFs like the Global X Blockchain UCITS ETF or the VanEck Crypto and Blockchain Innovators UCITS ETF can help effectivey diversify risk and reduce the need for extensive personal research. Nevertheless, it still qualifies as an equity investment, susceptible to market trends, breaking news, and the customary market risks.
René Louis Delrieux
René is a member of the BISON team, working in the securities department. He specializes in the analysis and selection of investment solutions in the field of securities, ETFs and portfolio strategies. Prior to joining BISON, he worked at comdirect and onvista bank. When he's not immersed in the world of finance, you can find René jogging in norther Germany or enjoying a glass of rosé.
The information and opinions provided in this article are for general information purposes only. It does not constitute investment advice, a recommendation or an offer to buy or sell shares, ETFs or other financial instruments. Any investment involves risk, including the risk of total loss. Before making any investment decision, you should always conduct your own research, inform yourself about the risks involved and, if necessary, consult financial advisors or professionals to ensure that the investment strategy you choose is appropriate for your individual objectives and risk tolerance. The risk and responsibility for all your investment decisions lies solely with you.
