Blockchain ETFs Now Command Over $300 Million in Assets
Blockchain ETFs, a growing an increasingly popular asset class in the US, now command $334.83 million in total assets. While the Amplify Transformational Data Sharing ETF (BLOK) and the Reality Shares Nasdaq NexGen Economy ETF (BLCN) currently command a proportionally higher amount of assets in the space, the Innovation Shares NextGen Protocol ETF (KOIN) has been consistently delivering above average returns since its inception in January 2018.
The unrealized (and enormous) potential that blockchain technology holds is what encourages more and more players to join in. From technology and finance, to art and advertising, blockchain technology now has its footprints across sectors and industries. The widening use cases of blockchain technology has also led a larger number of companies to engage in its use to improvise on their existing processes, and/or build new products and services based on it.
4 Stocks That Are Blockchain ETF Favorites
We took a dive into all blockchain Exchange-Traded Funds on the US exchanges, to shortlist 4 companies which command the highest share in blockchain-based exchange traded assets. We looked at the Amplify Transformational Data Sharing ETF (BLOK), the Reality Shares Nasdaq NexGen Economy ETF (BLCN), the First Trust Indxx Innovative Transaction & Process ETF (LEGR), and the Innovation Shares NextGen Protocol ETF (KOIN), the REX BKCM ETF (BKC). Appearing in the most (if not all) funds’ top 10 holdings, these stocks are definitely the blockchain ETFs favorite! Here they are:
1. International Business Machines Corp (IBM)
IBM finds its way in all of the US-stocks invested blockchain ETFs currently trading on the US exchange. IBM Blockchain services are currently leading hundreds of clients across industries and around the world in starting, accelerating and innovating dozens of value-producing blockchain networks and solutions. Its blockchain-based solutions range from food safety to private equity and trusted identity. With over 400 client engagements and over 1500 technical and industry experts working towards providing game-changing business outcomes, IBM is definitely the pioneer and leader when it comes to monetizing blockchain as a service.
2. Taiwan Semiconductor Manufacturing Co Ltd (TSM)
This stock appears in the top 10 holdings of 4/5 blockchain ETFs listed above. TSM, the world’s largest chip foundry, is responsible for over 55% of the world’s chip production and has been profiting heftily from the crypto-mining boom. ASIC sales to Bitmain and GPU sales to AMD and NVIDIA alone account for 6-7% of TSM’s revenues. Sales from blockchain-related businesses could easily account for a good 10% of TSM’s revenue by the end of 2018.
3. Advanced Micro Devices Inc (AMD)
GPU-maker AMD figures in the top 10 holdings of 4 out of the 5 blockchain ETFs listed above. The company’s computing and graphic segment sales has recently had a big boost, courtesy of the blockchain market. Currently, about 6-10% of the company’s revenues come from selling to crypto miners. Given that blockchain technology offers a sustainable market for GPUs, AMD should have a bright future ahead.
4. Accenture PLC (ACN)
Accenture finds its place in 4/5 portfolios of the ETFs listed above. As a company, Accenture strives to be at the forefront of blockchain innovation and its practical, real world application. Accenture Blockchain is currently pioneering transparent and secure business processes across the globe. In sync with its belief that technology-based partnerships will redefine business in the future, Accenture has partnered with Digital Asset, R3, Ripple, Enterprise Ethereum Alliance, and Hyperledger to foster its offerings, research and innovation in the blockchain space.
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