This article was originally published on ETFTrends.com.
Bitcoin is already on a breakneck rally heading into the start of 2024. This is primarily due to the largest crypto-dedicated US-listed spot ETF. However, further upside may be in store. This is because some market participants are increasing their interest in the virtual currency market.
This could be a boon for ETFs like the Amplify Transformational Data Sharing ETF (BLOK). The story of blockchain and BLOK involves more than just Bitcoin. However, the rise in digital currencies in 2024 was definitely a catalyst for ETFs. That's highlighted by a 21% year-to-date increase.
In fact, part of that upside was fueled by the broadening of Bitcoin investor coverage with the launch of the aforementioned spot ETFs. The expansion of the Bitcoin investor base is not limited to retail market participants. This includes professional investors. And that indicates that a reliable catalyst for BLOK's cryptocurrency-related holdings may be on the way.
Hedge funds enter the virtual currency market
A potentially bullish sign for some of the stocks held by BLOK is that some hedge funds are looking to increase their exposure to the crypto market. Max Minton, Goldman's head of digital assets in Asia-Pacific, told Bloomberg in a recent interview that large clients are already actively participating in the crypto market or are considering doing so. Ta.
He said the launch of a Spot Bitcoin ETF in the US is contributing to the increased interest. Some experts believe a similar scenario could play out if the SEC approves a Spot Ether ETF. I think there is a possibility that The move could also benefit some blockholding stocks.
“The bulk of the demand comes from Goldman's existing clients, primarily traditional hedge funds. The bank is also seeking a “broader range of clients” including asset managers, banking clients and some digital asset companies. It's expanding,” Bloomberg reported, quoting Minton.
Another interesting point for investors considering BLOK is that Goldman is leveraging blockchain technology to offer tokenized asset trading to its clients. This is just one example of the growing use of blockchain in the financial services industry. The industry is already rapidly adopting blockchain.
“Aside from trading, Goldman is also active in tokenizing traditional assets using blockchain. According to Bloomberg, the bank launched a digital asset platform called GS DAP and recently Participated in a pilot test of a blockchain network that connects banks, asset management companies, and exchanges.
With $744.7 million, BLOK owns 53 shares and is actively managed. According to the issuer, at least 80% of its holdings must be engaged in “the development and use of blockchain technology.”
For more news, information and analysis, visit: crypto channel.
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