A Beginner's Guide To Investing In Blok Etf

Blockchain ETFs are a proxy for crypto exposure, especially for those who don't want to deal with the process of opening a crypto wallet. Amplify Transformational Data Sharing ETF (BLOK) is one such fund that invests in blockchain technology. BLOK is an actively managed ETF that invests a minimum of 80% of its net assets in stocks of companies that develop and use blockchain technologies. It is a high-risk, high-reward investment opportunity and is suitable for investors looking for blockchain exposure. BLOK can be purchased on Stash, which allows investors to buy fractional shares.

BLOK ETF as an alternative to crypto

The Amplify Transformational Data Sharing ETF (BLOK) is an actively managed exchange-traded fund (ETF) that provides investors with "indirect crypto exposure" rather than investing directly in cryptocurrencies. BLOK invests a minimum of 80% of its net assets in stocks of companies that develop and use blockchain technologies. This makes it an attractive alternative for investors who want exposure to the blockchain industry while avoiding the risks of the volatile cryptocurrency market.

BLOK was the first blockchain ETF approved by the SEC and launched in 2018. It has since become the largest blockchain ETF, with over $1.7 billion in assets under management (AUM). The fund invests across the blockchain landscape, in miners, exchanges, and developers, and spreads its holdings across all market caps. BLOK's top holdings include Silvergate Cap Corp. (SI), Galaxy Digital Holdings Ltd, and Coinbase Global Inc. (COIN).

BLOK's active management is a key advantage in the rapidly evolving blockchain industry, allowing the fund to make adjustments on the fly in response to changing conditions. Despite this active management, BLOK's expense ratio of 0.71% is very competitive compared to other blockchain ETFs and even some passively-managed index funds.

BLOK has underperformed the market in the last year, with a performance of -64.0% over one year. However, this underperformance is not unique to BLOK, as the use of blockchain is rising in industries including financial services, healthcare, tech, logistics, and payments. As blockchain technology continues to gain traction and dissociate itself from cryptocurrencies in the eyes of investors, BLOK and other blockchain ETFs could become more attractive investment options.

BLOK's actively-managed fund

The Amplify Transformational Data Sharing ETF (BLOK) is an actively-managed fund that provides investors with total return by investing at least 80% of its net assets in companies actively involved in the development and utilisation of "transformational data-sharing technologies", including blockchain.

BLOK is the only actively-managed fund in its group, allowing it to make adjustments in response to changing conditions in the rapidly evolving blockchain industry. This is a key advantage, as it means the fund can adapt to new developments and avoid potential pitfalls.

The fund takes an expansive view of the blockchain industry and does not restrict itself to cryptocurrency. It invests in blockchain securities directly, with Bitcoin accounting for about 2% of the fund's value. BLOK also invests in companies involved in the trading/exchange of blockchain securities/cryptocurrencies (e.g. Coinbase), the maintenance of blockchain networks (e.g. Bitcoin mining companies like Marathon Digital Holdings), and financial, technology, and fintech corporations with burgeoning blockchain projects (e.g. PayPal, Square, NVIDIA, and Visa).

Geographically, BLOK focuses on North American corporations but also invests in Asia, Europe, Africa, and the Middle East. The fund invests in companies of all sizes but is tilted towards large-cap holdings.

BLOK is a high-risk, high-reward investment opportunity. Due to the niche and risky nature of the blockchain industry, BLOK is best suited for bullish, aggressive investors. The fund's small position sizes and lack of safe, dependable dividends make it inappropriate for risk-averse investors.

BLOK has been praised for its diversification within a niche industry and its outperformance of its peers since its inception. Its expense ratio of 0.70% is also very competitive when compared to similar funds.

BLOK's investment in blockchain securities

The Amplify Transformational Data Sharing ETF (BLOK) is an actively-managed ETF that invests in blockchain securities and technologies. BLOK does not invest directly in blockchain technology but instead invests in companies that are actively involved in the development and utilisation of blockchain technology.

BLOK is an appropriate investment for those looking for blockchain exposure and is suitable for investors with a higher risk appetite. The fund is managed by Amplify Investments LLC and is designed to provide total returns by investing at least 80% of its net assets in companies involved in "transformational data-sharing technologies".

BLOK's top holdings include companies such as:

• International Business Machines Corp. (IBM)
• Accenture Plc (ACN)
• Overstock.com Inc. (OSTK)
• MicroStrategy Inc Class A
• GMO Internet Group Inc
• Galaxy Digital Holdings Ltd
• Coinbase Global Inc Ordinary Shares - Class A
• Marathon Digital Holdings Inc

BLOK's investment thesis is based on three key points:

• The fund offers investors exposure to the blockchain industry, which has the potential to revolutionise the financial and IT industries.
• The fund is diversified, even though it focuses on a niche industry, thereby reducing risk.
• The fund has outperformed its peers since its inception, including funds focusing on the broader fintech sector.

BLOK is a strong investment opportunity for investors seeking exposure to the blockchain industry, but it may not be suitable for risk-averse investors or those primarily looking for income.

BLOK's performance and assets

BLOK is an actively managed ETF that invests a minimum of 80% of its net assets in stocks of companies that develop and use blockchain technologies. The fund aims to give investors "indirect crypto exposure" instead of investing directly in cryptocurrencies. BLOK follows a blended strategy, investing in a mix of value and growth stocks of varied market capitalizations. The biggest three industry allocations are IT services, software, and capital markets, which together comprise more than two-thirds of the fund's holdings.

As of December 1, 2022, BLOK's performance over one year was -64.0%, with an expense ratio of 0.71% and an annual dividend yield of 1.09%. The three-month average daily volume was 257,792, and the assets under management (AUM) were $414.9 million. BLOK's inception date was January 17, 2018, and it is issued by Amplify Investments.

BLOK's top holdings include International Business Machines Corp. (IBM), a maker of hardware, software, and computing technology; Class A shares of Accenture Plc (ACN), an Irish information technology services company; and Overstock.com Inc. (OSTK), an e-commerce retailer.

BLOK has been described as the "clear winner" among blockchain ETFs in terms of performance and assets under management. It was the first blockchain ETF to hit the market and has stood out for its active management approach, allowing it to make timely decisions and adjustments in response to the rapidly evolving nature of blockchain technology.

BLOK's suitability for different investors

BLOK is an actively-managed ETF that offers investors exposure to the blockchain industry. The ETF invests in companies that are actively involved in the development and utilisation of blockchain technologies. Blockchain is a secure method of data storage and manipulation, offering a decentralised network that no single company or server can manipulate.

BLOK is a high-risk, high-reward investment opportunity. It is suitable for investors seeking exposure to blockchain technology, particularly those with a higher risk tolerance. Due to the niche nature of the fund and the high level of risk, position sizes should be small. BLOK is not suitable for risk-averse investors seeking safe and dependable dividends. The fund is also less appropriate for those seeking a passive investment strategy, as it is actively managed.

BLOK's performance has been mixed. It has outperformed its peers since its inception, but it has also underperformed the market in the last year. The fund's biggest holdings include International Business Machines Corp. (IBM), Accenture Plc (ACN), and Overstock.com Inc. (OSTK). BLOK's expense ratio is 0.70%, which is similar to other blockchain ETFs.

Overall, BLOK is a suitable investment for aggressive investors who are comfortable with higher levels of risk and are seeking exposure to the blockchain industry. It is less suitable for risk-averse investors or those seeking passive investments or dependable dividends.

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