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Blockchain ETF (BLOK) Hits a New 52-Week High

Sanghamitra Saha

For investors looking for momentum, Amplify Transformational Data Sharing ETF BLOK is probably a suitable pick. The fund just hit a 52-week high and is up 101.3% from its 52-week low price of $13.04/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

BLOK in Focus

This ETF is active and does not track a benchmark. The fund looks to provide total return by investing at least 80% of its net assets in equity securities of companies actively involved in the development and utilization of blockchain technologies.It has AUM of $121.9 million and charges 70 basis points in annual fees.

Why the Move?

As soon as COVID-19 hit the globe, social distancing mandates and fears that notes may be carriers of the virus made the concept of digital currency popular. On Oct 21, PayPal Holdings Inc PYPL announced that it will allow customers to hold bitcoin and other virtual coins in its online wallet and shop using cryptocurrencies at the 26 million merchants on its network. The new service makes PayPal one of the largest U.S. companies to provide consumers access to cryptocurrencies.

While many corporations are accepting cryptocurrencies now, several central banks are also considering the rollout of digital currencies lately. Such moves are positive for blockchain ETFs. Per a source, “the blockchain in Bitcoin literally acts [as] a ledger; it keeps track of the balances for all users and updates them as money changes hands.” “Invented to host bitcoin, today many other cryptocurrencies are also based on blockchain technology.” This explains the rally in BLOK.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 53.46, which gives cues of further rally.

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Amplify Transformational Data Sharing ETF (BLOK): ETF Research Reports
 
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