Investors who have followed the rise of cryptocurrencies have noted the volatility which has underpinned this revolution. With the price of Bitcoin, still the most popular cryptocurrency, being cut by more than a half since the beginning of the year, investors may be more interested in the blockchain technology beneath the surface of most cryptocurrencies, noting the potential for use outside of this grey sector in more conventional channels.
While some publicly traded companies are currently available to investors such as Hive Blockchain Technologies Ltd. (TSXV:HIVE), investors have had little in the way of options to buy into a diversified portfolio of blockchain businesses. One new ETF which looks to change all this is the new Horizons Blockchain Technology and Hardware ETF (TSX:BKCH).
This ETF focuses on both businesses directly linked to blockchain technology such as Hive, but also on companies which provide hardware and services linked to the blockchain revolution, with chip makers and other hardware providers included in the fray.
A number of high-profile chip makers in the U.S. have benefited from the rise in computing power needed for cryptocurrency mining, making such companies indirect plays on the industry and excellent drivers of long term profit potential.
While this sector is one which is far too young to provide an accurate projection of long term profitability (in my opinion), having an option to play this sector in a diversified manner is something which is undoubtedly going to provide significant value to those considering investing in this space.
Invest wisely, my friends.
