Bitcoin, the largest cryptocurrency by market cap, has been hovering around $30,000 for the last week after falling drastically from May 5 prices of right around $40,000. Crypto has proven to be highly susceptible to macro pressures and typically moves in tandem with equity markets during major macro events.
For investors that are seeking opportunities to gain exposure to the crypto space for the innovation potential the technology carries at discounted prices but do not want the direct exposure of a cryptocurrency, the Amplify Transformational Data Sharing ETF (BLOK) can be a solution for investors. BLOK invests in companies within crypto that seek to capitalize on the potential of blockchain and offers diversified exposure.
“In the near-term, markets will do what they will do regarding valuation, but the blockchain trend will continue to accelerate through whatever crisis is in front of us,” write the authors of the BLOK-Chain Monthly newsletter from Amplify ETFs.
Despite current valuations, Amplify believes that the fundamentals are strong for crypto and blockchain as a whole and reported that there are several venture capital firms waiting to seize the opportunities that dips provide, claiming that “they have much dry powder on the sidelines for ‘down rounds.’”
