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- ETF aims to facilitate total returns by simply investing 80% of its net assets in the stocks and equities of the companies who actively promote and work on the development of blockchain technologies
- BLOK is almost up by 25% year to date. Despite the market crash in the month of March, the ETF has managed to appreciate by 80%
- GFIN closed at $64.18 ( as per press time) and the daily change stood at -0.31%
Blockchain technology is expanding and it has a diverse range of applications. However, blockchain transactions are immutable which means that they cannot be stopped or revoked once initiated. Over the past few years, we have seen pioneering applications of blockchain. For instance, the cryptocurrency giant Bitcoin has had stellar growth from the past decade. The technology has impacted various sectors of agriculture, health-care, finance, the list goes on. However, there are two particular blockchain ETFs that have outperformed many of their kind.
But What Are ETFs?
ETFs which is short for Exchange Trading Funds is a collection of securities and generally trades like any other stock on the exchange. They are considered quite similar to mutual funds and trace the market index. ETFs can be of various types. It can be a stock, a commodity, a bond, or can be a blend of the mentioned investment types. Moreover, ETFs are tradable security which means some price is associated with them, facilitating the buying and selling of stocks. Unlike mutual funds, the price of ETFs fluctuates throughout the day. But what makes it a better option than mutual funds? It is believed that ETFs are somewhat cost-effective and offer more liquidity when compared to mutual funds.
Amplify Transformational Data ETF (BLOK)
Firstly, Amplify Transformational Data ETF or BLOK is an actively managed Exchange Trading Fund. It aims to facilitate total returns by simply investing 80% of its net assets in the stocks and equities of the companies that actively promote and work on the development of blockchain technologies. The net asset value is $23.44 and is down by 1.57% in the last 24 hours. The top five sectors as per its industry allocations are as follows:
• Software and services (30.9%)
• Diversified Financials (20.5%)
• Media and Entertainment (19.9%)
• Retailing (9.8%)
• And lastly, banking institutions. (8.1%)
BLOK is almost up by 25% year to date. Despite the market crash in the month of March, the ETF has managed to appreciate it by 80% since then. Moreover, on August 5th it reached an all-time high of $24.41.
Goldman Sachs Finance Reimagined ETF (GFIN)
Secondly, Goldman Sachs Finance Reimagined ETF or GFIN is an ETF that is maintained by the financial giant, Goldman Sachs. Today, GFIN closed at $64.18 and the daily change stood at -0.31%. It invests and enhances the growth of the companies in the financial sector which it believes describes the true sense of innovation. As of now, GFIN is up by 8.5% year to date. And the value of the stock has increased by 67% since Black Thursday. Mastercard, Square, Visa, PayPal Holdings, and Fidelity National Information Services are the top five companies in which the ETF invests around 20% of its total fund holdings.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
