The rapid ascent of blockchain technology has been evident over the last couple of years, but one stock, in particular, has been a strong outperformer when pitted against major stock market indexes like the S&P 500. Analytics company MicroStrategy, one of the top holdings of the Amplify Transformational Data Sharing ETF (BLOK), is worthy of mention.
Large cap or small cap indexes, MicroStrategy (MSTR) has been trouncing all market capitalizations when it comes to pure gains. It fared particularly well during the cryptocurrency bull run in 2021 and is still a strong performer despite this year’s crypto correction.
“In particular, the MSTR has recorded returns of 158.65% over 728 days,” a Finbold article noted. “Compared to the Russell 2000 Index, which comprises the smallest 2,000 companies, MicroStrategy has registered returns of 25.17%, while S&P 500 is trailing MSTR at 27.40%. Interestingly, the stock’s returns compared to Bitcoin stand at 98.28%.”
Adopting Bitcoin before 2021’s rally was a catalyst that amplified its performance over the last couple of years. Bitcoin rallied to a high of close to $70,000 in late 2021 before falling back down to earth this year.
“It is worth noting that MicroStrategy’s decision to adopt Bitcoin in 2020 was crucial in triggering a crypto market rally that extended towards the end of last year,” the article added further.
Active, Diversified Blockchain Exposure
There are a plethora of options available to investors looking to get blockchain exposure, whether it’s looking at individual stocks or other funds. One of the discerning features of BLOK is its active management strategy that can flex with the movements of the market by putting holdings in the hands of seasoned portfolio managers.
With 50 holdings as of August 10, BLOK adds diversified exposure and cryptocurrency exposure without investing in the currencies themselves. As mentioned, BLOK is actively managed, investing in companies partnered with or directly investing in companies utilizing and developing blockchain technology, which is the technology behind cryptocurrencies like bitcoin.
Summary of BLOK’s features per its product website:
- Global equity portfolio of professionally selected companies involved in blockchain technology and indirect crypto exposure.
- Active management approach that could enable the fund to remain flexible, make timely decisions, and identify companies that are best positioned to profit from the developing blockchain technology space.
- Convenience and transparency of the ETF structure.
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