Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Blockchain ETFs: Profit From The Technology Behind Bitcoin

Published 12/14/2017, 04:50 AM
Updated 07/09/2023, 06:31 AM

Blockchain ETFs

Bitcoin has been soaring this year; up about 1,600% year to date. But many market experts and regulators have warned investors about bitcoin, some even calling it a speculative bubble.

Bitcoin is also notorious for its extreme volatility, but even bitcoin’s harshest critics recognize the extraordinary potential of the blockchain, the technology that underpins bitcoin and other cryptocurrencies. (Read: Bitcoin Skyrockets, Will ETFs follow Futures?)

In simple words, blockchain is a shared, digital ledger that all users can see and but no single user can control.

IBM has an excellent infographicon blockchain. It describes how a blockchain is built: 1) As each transaction occurs, it’s put into a block, 2) each block is connected to the one before and after it, 3) transactions are blocked together and 4) each block is added to the next in an irreversible chain.

The technology is still very new and its full potential is not yet known but many experts say it could change our world.

Not surprisingly, investors are very excited about companies that are poised to benefit from blockchain revolution. Many blockchain related stocks have soared of late. (Read: Ethereum ETF—The Bitcoin Crushing Digital Currency Explained)

Microsoft (NASDAQ:MSFT) , IBM (NYSE:IBM) and Overstock (NASDAQ:OSTK) are among the well-known companies that have invested in this technology but there are many smaller companies that are blockchain pure plays.

The race for blockchain ETFs is heating up with five ETF sponsors recently filing for ETFs that would provide a convenient way to get exposure to blockchain ecosystem.

Reality Shares has filed for an ETF based on the Reality Shares Nasdaq Blockchain Economy Indexthat tracks the growth and development of leading global companies creating and implementing blockchain solutions.

I spoke with, Eric Ervin, CEO of Reality Shares to learn more about this ETF and the underlying index.

Among other things, we discussed the blockchain technology and its transformative potential.

Eric also explained how the index ranks blockchain companies to identify those expected to benefit most from the innovation, adoption, deployment and commercialization of blockchain technology.

Please visit Zacks ETF Centerfor more information on bitcoin and blockchain. And, make sure to write to us at podcast @ zacks.com.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>



International Business Machines Corporation (IBM): Free Stock Analysis Report

Overstock.com, Inc. (OSTK): Free Stock Analysis Report

Microsoft Corporation (MSFT): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.