4 ETFs to Buy for Blockchain Boom!
You’ve heard me say it: Blockchain is going to change the world.
And right now, we’re on the road for its rocket boom, taking it to unbelievable new highs!
Over the next two years, worldwide blockchain spending is set to grow to $15.9 billion — but I think that’s a conservative estimate.
In my opinion, there’s no way it won’t soar higher!
Blockchain is an incredible technology that will transform almost everything — how you buy homes, cryptocurrencies, voting…
And there’s a way you can invest in all of the mega trends — cloud computing, semiconductors, crypto — that will build the foundation for the next blockchain boom.
In fact, I have four incredible, phenomenal exchange-traded funds (ETFs) that will put your portfolio right in the center of all the blockchain action:
Blockchain: The Monster Blockbuster Technology
Many people probably have heard or are beginning to hear about this thing called a blockchain, mostly because of the astonishing price rise in Bitcoin (BTC).
Today I want to spend a little time telling you about blockchain, what is going on and why I believe it’s going to be a massive, blockbuster technology that’s going to generate gains in lots of place. I am going to point you to three places where you could put your money.
We have focused on them across our services to benefit from the adoption and unfolding of blockchain as it pushes out. In very brief form, a blockchain is a technology that interlocks pieces of data. It gives access to people and that data only if you allow them.
A great example of this might be something like when you go to apply for homeowner’s insurance. Right now there is a huge process to go through to get the insurance. You have to call an insurance agent, the agent will ask you all these details about your house which you may or may not know because you just bought it.
Maybe it’s a 50-year-old house. Maybe it’s an even older house with details you are unaware. You may guess at some of the answers or have to call other people to get the answers. You give them all this information and then they ask what coverage you want for the house.
You need to know what’s required by the state or city. Then they give you a quote. Then you have to pay for it. Then you have to give proof of coverage to a mortgage broker to get your mortgage. All of this is so many different steps and so many different calls and so many people.
You can eliminate pretty much everything other than telling them the level of coverage you want. However, all the other steps could be eliminated by the blockchain by encoding all that data into a chain and then allowing the insurance company to have access to all that data.
Then you allow your mortgage broker to have access so you don’t have to provide all that data. In other words, it eliminates an extraordinary level of paperwork that will need to replicated at your insurance broker, your mortgage broker, maybe at the county level, city level, state level.
All these records are needed by all these people at different days on different times. If you simply allow it to sit on a blockchain and permission people to access it, you can eliminate all this need to keep this paperwork and constantly provide it to people.
It also has the additional elements of being able to move a lot faster. People are forced to wait when you lack this information. Then there is also the element of trust. Oftentimes transactions sit around because people aren’t sure people are going to follow through.
By putting everything on the blockchain that is visible to all the people that have been given access, now everyone can see that insurance payment has been made and they can go forward with the mortgage. Now think of all the other transactions that require lots of different people to have access to information to move on.
You can understand the power of implementing blockchain in the real estate industry or anything that involves a transaction with more than one person where a lot of people need to look into it. So the promise of blockchain is extraordinary in terms of its implementation.
It is going to revolution the world of transactions, which is the essence of human existence. Think about everything we do. Renting an apartment or a house, buying a car, leasing a car, buying a house, buying insurance — there are so many things where records come into play and trust comes into play.
Blockchain can solve or address many of the problems so as to shrink the number of issues that can come up. I tweeted recently saying “blockchain boom coming.” The worldwide spending on blockchain, which in 2018 was $1.5 billion, is expected to get to $15.9 billion.
On the side of that statistic is where the spending is going to be. No surprise that as much as 30% is banking. 50% is definitely going to be in places like insurance and other places I mentioned where the implementation of blockchain means simpler, more access and cheaper.
It’s the essence of innovation. Blockchain is going to revolutionize the world of banking and insurance. It can change things to make things easier. Blockchain is a revolution. Its time is here. The numbers telling you about the size in 2023 is just two years away.
I actually think that number is crazy small. $15 billion or $16 billion just seems like the beginnings of it. It’s going to be five or 10 times that if you extend it out a couple extra years. The banking industry has transactions in the trillions of dollars. The insurance industry is the same.
These are very large industries with a lot of transaction volume. $15 billion seems like very little. I think it’s going to be significantly higher than that. I believe if you want to get the benefit of that, the time to buy in is now. There are three ways you can do it, which by the way are in all our services. That includes our flagship service, which is called Profits Unlimited.
Chip Companies and Semiconductors
It’s going to require a lot of computing power. You are going to have a lot of information. To be able to use blockchain to make our lives easier, we need this to happen fast.
For us to punch in a query to find where something is on a blockchain and to get it 20 days from now or a week from now is missing the promise of blockchain. The idea of blockchain is the data is there and it’s accessible like that [snaps fingers]. In a few seconds, a few minutes.
Worst case scenario, if the blockchain is very busy, maybe it takes 15 or 20 minutes. However, that compares to days and weeks and sometimes even months in terms of what we can do. So it’s chips, computer chips, semiconductors — whatever you want to call it.
This is one way to get at the spending that is going to happen to make the blockchain happen. The easiest way to get in is to buy into an ETF that has a lot of chip companies that address a lot of needs beyond blockchain. Nonetheless, it will give you generalized access.
If you want more specific access, that’s what our services are good at. We are laser focused on single companies and recommending those to you through our portfolios. However, for general access you can buy into the VanEck Vectors Semiconductor ETF (Nasdaq: SMH).
It’s a semiconductor ETF I have been telling people about for several years. This will give you wide, broad access to chip companies, including chip companies that are going to benefit from the adoption and rollout of blockchain.
So that’s area number one: chips companies. SMH is the semiconductor ETF that will give you broad access to blockchain exposure.
The second way is to buy into cloud computing companies. Where is all this information going to sit? It’s going to have to sit on servers. It’s going to sit on servers that have to be organized in a certain way so when you go to access the blockchain it comes at you pretty fast and is accessible to a lot of people all at once.
That is going to take a lot of storage and computing power. You need very efficient storage and very fast storage. The way you can get that is to buy into cloud computing companies that give you exposure. You could get that from large companies like Microsoft and Google that have large cloud computing business, Amazon as well.
However, to get bigger gains you probably want slightly smaller companies. Once again, I know I am plugging our services, but that’s the kind of thing we do. We point you to single companies that you can invest in through our services. However, you can also get it through generalized access in an ETF.
One of the ETFs I have talked about is the Global X Cloud Computing ETF (Nasdaq: CLOU). I have also mentioned ETF in the past: First Trust Cloud Computing ETF (Nasdaq: SKYY). It’s another cloud computing ETF. Both of them have similar companies.
Don’t buy both of them, just pick one of them. They have some differences, but give you similar exposure. Don’t double your exposure by buying both, just buy one. It will give you access to a wide array of cloud computing companies that give you access to this blockchain adoption and rollout.
You will have some number of companies that benefit from that that will make the ETF go up over time. So cloud computing companies is the second way.
Diversify Your Crypto Stocks
The third way I would tell you you can benefit from the adoption and rollout of blockchain is to own various cryptocurrencies. Many of these cryptos do require you to have an account with Coinbase or some specialized crypto exchange like Binance or Kraken.
There is a generalized way you can get access to a few of these currencies or get the benefit of crypto itself, even if not the actual application of blockchain. There is an asset management company called Grayscale. They have the Grayscale Digital Large Cap Fund (OTC: GDLC).
This gives you exposure to BTC, Ethereum and three other currencies that give you general exposure. This is not the laser-focused exposure you might want to blockchain, but it does give you a little bit of a toe in the crypto market. I have to warn you these Grayscale trusts can trade at premiums relative to the underlying crypto.
This is why I hesitate a little to tell you about it. Nonetheless, if you are looking for an option, this is one that’s out there. It does come with some complications. If you are looking for actual crypto recommendations, we are starting a crypto service that is going to be led by my colleague Ian Dyer.
This is going to be a trading service so it’s not going to be a buy and hold service. If you are interested in that, keep checking back for our announcement!
Blockchain spending, rollout and adoption is about to explode higher. I believe getting into it now will give you access to stocks and investments through semiconductors, cloud computing and crypto that could go up and go up a lot.
We are at the beginnings of this. Check into all the ETFs and investments I mentioned.
Editor, Profits Unlimited
P.S. Today, I gave you four ETFs for the blockchain boom. But if you want more exposure, I’ve got a whole presentation about this amazing technology — including my No. 1 stock for blockchain. Click here to get the full scoop.