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Venture Capital Activity in Blockchain Surpasses 2021 Despite Rough Year

Bitcoin’s price has dropped by over 60% this year, but despite the fallout in the broad cryptocurrency market, blockchain projects are seeing inflows when it comes to venture capital funding.

While the pace of venture capital investment has slowed in 2022 for cryptocurrencies compared to 2021, interest in blockchain hasn’t waned. This comes despite the crypto market falling amid inflation and rising rates, as well as the fallout from the collapse of crypto exchange FTX.

“Blockchain venture capital funding has been on a downward slope since May 2022, and November was no different, with inflows declining even further,” a Cointelegraph article noted. “However, the total capital inflows for 2022 have surpassed 2021 by almost $6 billion.”

This could allude to the growing interest in the potential for blockchain technology apart from the cryptocurrency market. It underscores the ability of blockchain technology to function as its own mutually exclusive avenue for investment aside from underpinning cryptocurrencies.

“Despite a slowdown in crypto VC funding since May, the total funding for the year has exceeded the figure for 2021,” the article added. “Cointelegraph Research’s VC Database shows that a total of $36.1 billion has been raised in 2022, with less than two weeks of the year remaining. By contrast, the total funds raised in 2021 was $30.3 billion.”

An Avenue for Blockchain Tech Investing

One way to get blockchain technology exposure is via exchange-traded funds (ETFs) like the Amplify Transformational Data Sharing ETF (BLOK). BLOK features an active management strategy that can adapt to the market’s movements by putting holdings in the hands of seasoned portfolio managers.

Furthermore, BLOK adds diversified exposure and cryptocurrency exposure without investing in the currencies themselves. Additionally, the fund offers diversification abroad by looking at opportunities outside the U.S., giving investors exposure to growth opportunities in emerging and developed markets.

While the majority of the fund (75%) contains holdings in North America-based companies, the fund also diversifies with holdings in Western Europe and Asia-Pacific, investing in companies utilizing and developing blockchain technology.

Per its product website, BLOK features:

  • A global equity portfolio of professionally selected companies involved in blockchain technology and indirect crypto exposure.
  • An 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.
  • The convenience and transparency of the ETF structure.

For more news, information, and strategy, visit the Crypto Channel.


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