Risk assets have shown broad weakness in recent history, and the crypto market is no exception.
Although Bitcoin has outperformed most altcoins lately, with investors fleeing the smallest and most risky coins, the bitcoin price fell 4% over the past seven days, dropping below the critical technical level at $40k. All the top three coins by market cap continue following each other closely and are down between 3% and 5%, according to Arcane research.
While cryptocurrency losses have dominated headlines this year to date, this has been an extremely volatile asset with years of tenfold growth and other years with more than 80% losses. In 2020, Bitcoin returned nearly 303% — the following year, in 2021, Bitcoin returned over 57%.
For investors who want access to the growing crypto space but are looking to diversify their exposure and mitigate some of the volatility associated with spot cryptocurrency, the Amplify Transformational Data Sharing ETF (BLOK) can be a great solution.
BLOK is actively managed, investing in companies partnered with or directly investing in companies utilizing and developing blockchain technologies, the technology behind cryptocurrencies like Bitcoin. However, the fund does not invest directly in blockchain technology or cryptocurrencies.
BLOK was the first blockchain ETF approved by the SEC and launched in 2018, garnering $820 million in assets under management since inception.
BLOK spreads its holdings across the size spectrum, investing in all market caps. As of the end of 2021, top allocations within the blockchain industry included transactional at 38%, crypto miners at 23%, and venture at 11%. BLOK invests across the blockchain landscape, in miners, exchanges, and developers.
Top holdings include Silvergate Capital, CME Group Inc., SBI Holdings, Inc., NVIDIA Corporation, and GMO Internet Inc. The fund includes well-known names in the digital assets space such as Galaxy Digital, Coinbase, and Digital Garage.
BLOK has an expense ratio of 0.71% and currently has 45 holdings.
For more news, information, and strategy, visit the Crypto Channel.
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