How can investors get in on the ground floor of this game-changing technology? Start by learning about some of the finest blockchain stocks and ETFs to invest in during 2021.
When you hear the term blockchain, you almost certainly think of Bitcoin. After all, in 2021, the cryptocurrency made news when its price climbed to an all-time high of more than $41,000 before plunging back to earth in a matter of days.
Blockchain, the technology that underpins Bitcoin, is much more than just digital money. In blockchain, “blocks” are data chunks that are kept together. When filled, a block is “chained” to the next block, creating a chronological timeline that makes the data in the blockchain extremely safe. As a result, firms in fields including banking, health care, supply chain management, and others can benefit greatly from these digital records.
How can investors get in on the ground floor of this game-changing technology? Start by learning about some of the finest blockchain stocks and ETFs to invest in during 2021.
1. Visa
Credit card firms were among the first to recognize the fintech sector’s potential for blockchain technology, but one of the first to act was Visa. Visa has been investing in blockchain since 2016 when it launched Visa B2B Connect, a mechanism for businesses to make safe business-to-business payments using blockchain, thanks to a partnership with blockchain infrastructure company Chain.
Linking credit and debit accounts to bitcoin wallets like Coinbase is perhaps the most intriguing application of Visa’s blockchain investments. Visa helps to legitimate the technology by letting Visa customers change cryptocurrencies into cash or use cryptocurrency as a rewards payment. Visa also gets a part of the action. Visa is swiftly becoming one of the biggest players in the expanding blockchain business, with more than 25 digital currency wallets connected to its services.
2. Square
Square, a mobile payments business that offers merchant transaction processing and peer-to-peer money transfers through its Cash App, had a fantastic year in 2020. Net sales increased by 140%, and gross profit increased by 59% year over year in the third quarter.
Bitcoin may be the actual star of the earnings report. In 2018, Square started enabling consumers to trade bitcoin, and the move seemed to be paying off. The Cash App made $1.63 billion in bitcoin revenue in the third quarter, which was 11 times more than the third quarter of 2019.
Furthermore, in October 2020, Square purchased $50 million in bitcoin as a 1% stake in the company’s holdings. Square certainly believes in the potential of blockchain technology, and it has already begun to enjoy the benefits of its early bitcoin investments. Combined with quality telecom billing software can make it even more profitable.
3. IBM
While other tech companies’ stocks have skyrocketed in recent months, IBM appears to have been left behind. As IBM struggles to find a path forward, its stock has stayed relatively flat over the previous year, but one direction the corporation may take is in the future of blockchain technology.
IBM Blockchain was launched in 2017 with the goal of expanding the company’s blockchain offerings. There are currently around 500 blockchain projects under development. Food Trust, which allows firms like Walmart to track their food supply chain, and World Wire, an international digital payments network, are two of them.
IBM is examining the technology closely and wagering that it can find a profitable angle, making the company one of the few value possibilities in the blockchain space.
4. Siren Nasdaq NexGen Economy ETF
The blockchain concept is sound, and the technology’s rising adoption among businesses throughout the world indicates that it is gaining traction. Hedging your bets is still a good idea.
Investing in a blockchain-focused fund, such as the Siren Nasdaq NexGen Economy ETF, which collects companies from a range of sectors that research, develop, and support blockchain technology is one way to do this.
The fund presently has around 70 holdings, varying from blue-chip companies like Baidu and JPMorgan Chase & CO. to smaller firms like Galaxy Digital Holdings, giving investors a diverse portfolio of stocks to protect against a sudden shift in public opinion against blockchain technology. Siren Nasdaq NexGen Economy is up more than 55% in the last year, and the more companies that adopt blockchain, the higher the fund will go.
Subscribe to get notified on latest posts.
