Blockchain isn't relegated to large companies that have the capital to invest in the technology. Small businesses are also using the power of blockchain to make their core operations more efficient.
"Blockchain usage is particularly alluring for small businesses," a European Sting article explains, noting opportunities for small-medium enterprises (SMEs). "It provides them with an affordable and efficient avenue to make and receive payments, access investment and savings products, and build a credit history. Enabling greater access to this technology can foster SME growth, which, in turn, enhances job creation and economic development."
That said, blockchain technology will penetrate a small business space that accounts for a significant market share. It's not in just developed countries where these opportunities exist, but worldwide.
"SMEs account for roughly 90% of all businesses and 50% of all jobs worldwide," the article explains further. "In emerging economies, SMEs in the formal sector contribute up to 40% of national income while creating 7 out of 10 jobs. Their role in economic growth is critical, as the World Bank estimates 600 million jobs need to be created by 2030 to absorb the growing global workforce."
Growth-Focused ETFs in Blockchain Technology
One way to capitalize on the growth potential of blockchain's effect on small businesses is to get blockchain ETF exposure. Invesco has a pair of blockchain-focused ETFs that offer growth exposure via small-cap companies and minimize concentration risk.
First up, there's the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC). Per its fund description, BLKC will aim to track the Alerian Galaxy Global Blockchain Equity, Trusts & ETPs Index.
The index is comprised of stocks of companies that are materially engaged in the development of blockchain technology, cryptocurrency mining, cryptocurrency buying, or enabling technologies, exchange traded products (ETPs), and private investment trusts traded over-the-counter that are linked to cryptocurrencies. The fund comes with a 0.60% expense ratio.
Next, investors will want to look at the Invesco Alerian Galaxy Crypto Economy ETF (SATO). Growth is the prime focus of this fund, with over 60% of SATO’s holdings in small-cap growth.
SATO will aim to track the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity, Trusts & ETPs Index and provide exposure to companies participating in both the cryptocurrency and blockchain spaces, including businesses such as cryptocurrency miners, cryptocurrency infrastructure technology developers, and cryptocurrency buyers. Like BLKC, the fund also comes pegged with a 0.60% expense ratio.
For more news, information, and strategy, visit the Crypto Channel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
