Blockchain technology is no longer a speculative concept—it’s a foundational force reshaping finance, supply chains, digital identity, and more. For investors seeking exposure to this transformation, the Amplify Transformational Data Sharing ETF (BLOK) offers a dynamic, actively managed approach to capturing growth across the blockchain ecosystem.
Unlike traditional index-tracking funds, BLOK leverages expert portfolio management to pivot with market shifts, regulatory developments, and technological breakthroughs—positioning it as a forward-thinking choice in the rapidly evolving digital economy.
Why Invest in BLOK?
Embrace the Future of Finance
The financial world is undergoing a seismic shift driven by decentralized technologies. BLOK is designed to help investors tap into the long-term potential of blockchain innovation—from cryptocurrency infrastructure to enterprise-level data solutions—without having to pick individual stocks or navigate volatile digital asset markets directly.
Active Management for a Dynamic Sector
Blockchain moves fast. Regulations evolve, new platforms emerge, and technological leaders rise and fall. Passive funds often lag behind these changes. BLOK’s active management strategy allows the fund to reallocate holdings based on real-time insights, ensuring exposure to companies at the forefront of blockchain adoption and development.
Proven Track Record Since 2018
Launched on January 16, 2018, BLOK has navigated multiple market cycles, including crypto booms and corrections. Its consistent strategy focuses on identifying leading blockchain innovators, firms building crypto infrastructure, and those holding digital assets through regulated instruments like Bitcoin ETPs (exchange-traded products).
As of November 30, 2021, BLOK ranked in the top tier among 215 technology-focused funds based on risk-adjusted returns—a testament to its disciplined investment approach.
👉 Discover how active blockchain investing can enhance your portfolio strategy.
Investment Objective and Strategy
BLOK’s primary objective is capital appreciation by investing at least 80% of its net assets in equity securities of companies actively involved in blockchain technology. This includes firms engaged in:
- Developing or utilizing blockchain for secure data sharing
- Providing infrastructure for cryptocurrencies
- Creating decentralized applications (dApps)
- Participating in blockchain consortia or partnerships
The fund does not invest directly in cryptocurrencies like Bitcoin or Ethereum. Instead, it gains exposure through equities of publicly traded companies and regulated financial products such as Bitcoin ETPs—offering a compliant and accessible entry point for mainstream investors.
Portfolio decisions are guided by a combination of fundamental analysis, industry trends, and macro-level risk assessment—ensuring alignment with both innovation and investor protection.
Understanding Blockchain Technology
Blockchain is a decentralized, peer-to-peer digital ledger that records transactions across a network of computers. Each transaction is grouped into a “block,” cryptographically linked to the previous one—forming an immutable “chain.”
This structure ensures transparency, security, and tamper resistance. While best known for powering cryptocurrencies like Bitcoin, blockchain’s applications extend far beyond:
- Tracking real-world assets (e.g., property deeds, supply chain goods)
- Securing digital identities
- Enabling smart contracts
- Facilitating cross-border payments
BLOK invests in companies that build and use this technology—not the protocol itself. This includes tech giants integrating blockchain into operations, startups launching decentralized platforms, and hardware manufacturers supporting mining and transaction validation.
Key Industry Allocations
BLOK diversifies across multiple segments within the blockchain value chain:
- Application: Developers of dApps and platforms enabling decentralized ecosystems.
- Platform: Firms offering blockchain-based payment systems or transaction networks.
- Miner: Companies operating high-powered computing systems to validate transactions.
- Semi-Conductor: Producers of specialized chips used in crypto mining and blockchain processing.
- Venture: Investment firms funding early-stage blockchain projects.
- Exposure: Holdings in spot Bitcoin ETPs and corporations with significant BTC reserves.
- Conglomerate: Large entities managing multiple crypto-related ventures.
- Private Blockchain: Firms deploying permissioned ledgers for enterprise use.
This multi-layered approach helps mitigate sector-specific risks while maintaining concentrated exposure to high-growth areas.
Geographic and Market Cap Diversification
While the fund maintains flexibility in regional allocation, it primarily invests in U.S.-listed equities but also holds international securities—adding global diversification. Investments span large-cap innovators to emerging mid- and small-cap disruptors, balancing stability with growth potential.
Although specific allocations fluctuate based on market conditions, BLOK emphasizes high-conviction positions in companies demonstrating strong fundamentals, clear blockchain integration, and scalable business models.
👉 See how diversified blockchain exposure can future-proof your investment strategy.
Performance Overview
BLOK’s performance reflects its active management edge in a volatile sector. Since inception on January 16, 2018, the fund has delivered returns that reflect both the explosive growth and periodic corrections characteristic of the blockchain space.
Past performance does not guarantee future results. Investment return and principal value fluctuate, so shares may be worth more or less when sold.
The fund’s NAV (Net Asset Value) and market price are updated daily. Investors trade shares at market prices, which may differ from NAV—resulting in premiums or discounts. Over time, BLOK has generally traded close to its NAV, indicating efficient pricing and strong market interest.
Morningstar Rating Recognition
As of November 30, 2021, BLOK received a 5-star Morningstar Rating among 63 funds in the technology category based on risk-adjusted returns—a significant endorsement of its strategy and execution.
Frequently Asked Questions (FAQ)
Q: Does BLOK invest directly in Bitcoin or other cryptocurrencies?
A: No. BLOK does not hold cryptocurrencies directly. It gains indirect exposure through investments in Bitcoin ETPs and companies with significant crypto holdings or blockchain operations.
Q: Is BLOK suitable for conservative investors?
A: Due to its focus on a single, fast-moving sector, BLOK is considered higher risk than broad-market ETFs. It’s best suited for investors with a medium to high risk tolerance seeking growth exposure.
Q: How often does BLOK rebalance its portfolio?
A: As an actively managed ETF, BLOK’s portfolio is reviewed continuously and rebalanced as needed based on market developments, regulatory changes, and emerging opportunities.
Q: Are there distributions or dividends paid by BLOK?
A: The fund may make annual distributions if earnings are generated, but there is no guarantee. Distribution details are announced annually.
Q: What are the main risks of investing in BLOK?
A: Key risks include sector concentration, volatility in tech stocks, regulatory uncertainty around blockchain, cybersecurity threats, and foreign investment exposure.
Q: Who manages the BLOK ETF?
A: The fund is advised by Amplify Investments LLC, with sub-advisory services provided by Tidal Investments, LLC, both experienced in thematic and transformational technology investing.
Final Thoughts: Positioning for the Digital Economy
The blockchain revolution is still in its early stages. From decentralized finance (DeFi) to tokenized assets and Web3 infrastructure, the long-term potential remains vast. BLOK offers a professionally managed, transparent, and diversified way to participate in this evolution—without the complexities of direct crypto ownership.
For investors looking to align their portfolios with tomorrow’s digital economy, BLOK represents a strategic bridge between traditional finance and next-generation innovation.
👉 Learn how thematic ETFs like BLOK are shaping the future of investing.
Investing involves risk, including possible loss of principal. ETF shares are bought and sold at market price, not NAV, and may trade at a premium or discount. The fund is subject to active management risk, sector concentration risk, and international investing risks. Cryptocurrency-related investments are speculative and volatile.