The Blockchain Technologies ETF (TSX:HBLK) was down 1.58% in early afternoon trading on April 18. However, shares of the ETF have climbed 8% week over week as the broader cryptocurrency and blockchain market has rebounded in April.
The price of bitcoin, which had previously hovered around the $6,000 mark rebounded over the $8,000 mark on April 18. The global stock market rout in late January and early February trounced cryptocurrencies, stocks connected to blockchain solutions, and the sky-high Canadian cannabis market. As broader markets have taken a breather, these sectors have also started to look more attractive.
Some of the top holdings for Blockchain Technologies include Intel Corporation (NASDAQ:INTC). Intel has expressed interest in a patent for a bitcoin mining “accelerator”. Microsoft Corporation (NASDAQ:MSFT) plans to use blockchain to develop decentralized IDs in its Authenticator app, and has actively sought blockchain investment opportunities in developing economies like India.
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is the second-largest holding in the ETF and was an early adopter in this sector. The company announced that it has developed a blockchain solution to facilitate cross-company data-sharing which could reduce the risks of data breaches and fight against fraud and money-laundering.
Blockchain Technology ETF has suffered a double-digit decline since its launch in February. Investors should look for points of re-entry as the prospects for this developing technology remain highly attractive.
