🧩Beyond Bitcoin: Why Smart Investors Choose BLOK for Blockchain Exposure

In partnership with

Greetings to our community of smart ETF investors! Today, we're diving deep into a fund that has been riding the waves of digital transformation: the Amplify Transformational Data Sharing ETF $BLOK ( ▼ 0.95% ) . While crypto headlines dominate financial news, there's a sophisticated investment story unfolding in the background—one that BLOK has been telling since 2018.

The Daily Newsletter for Intellectually Curious Readers

Join over 4 million Americans who start their day with 1440 – your daily digest for unbiased, fact-centric news. From politics to sports, we cover it all by analyzing over 100 sources. Our concise, 5-minute read lands in your inbox each morning at no cost. Experience news without the noise; let 1440 help you make up your own mind. Sign up now and invite your friends and family to be part of the informed.

Join for free today!

What is BLOK?

BLOK is an actively managed ETF that invests at least 80% of its net assets in equity securities of companies involved in developing and using blockchain technology. Think of it as your entry point into the blockchain revolution without the extreme volatility of direct cryptocurrency investments.

You might be wondering: "With Bitcoin and Ethereum spot ETFs now available, why bother with BLOK?" The answer lies in three powerful words: diversification, companies, and infrastructure.

While Bitcoin and Ethereum ETFs give you direct exposure to those specific cryptocurrencies, BLOK provides diversified exposure across companies, products, and blockchain-related assets. Instead of betting on individual digital currencies, you're investing in the entire ecosystem—the picks and shovels of the digital gold rush, if you will.

Blockchain technology underpins cryptocurrencies like Bitcoin, but it's much more than that. It's a peer-to-peer secure digital ledger that records and verifies tangible, intangible, and digital assets across networks. We're witnessing the early stages of a transformation that could revolutionise everything from supply chain management to digital identity verification, smart contracts, and decentralised finance.

Regarding BLOK's Competitive Edge, we can not ignore its History and Active Management.

• 📈Proven Track Record Since 2018: BLOK has been navigating this space, gaining nearly seven years of experience through multiple crypto cycles. This isn't a newcomer trying to capitalise on recent trends—it's a seasoned player who has weathered the storms and captured the rallies.

• 👩🏻‍💻Dynamic Active Management: Unlike passive funds, BLOK uses active portfolio management to dynamically adjust holdings based on industry trends, regulatory changes, and emerging technologies. This flexibility enables the fund to adapt as the blockchain landscape evolves, potentially capturing opportunities that static index funds may miss.

Investment Strategy📊

To integrate BLOK into your ETF portfolio, evaluate these strategies:

• 🛰️Core-Satellite Approach: BLOK works exceptionally well as a satellite holding in a diversified ETF portfolio. Consider allocating 3-8% of your equity allocation to BLOK, treating it as your "innovation and disruption" exposure. This approach enables you to participate meaningfully in blockchain growth without compromising your core holdings.

• 🔁Sector Rotation Strategy: For more tactical investors, BLOK can serve as your technology sector "alpha generator." The fund has outperformed the S&P 500 in recent years amid optimism about the potential of blockchain technology. Consider increasing your BLOK allocation during periods when technology adoption cycles are accelerating.

• 💲Dollar-Cost Averaging: Given the inherent volatility in emerging technology sectors, dollar-cost averaging into BLOK over 6-12 months can help smooth out entry timing. The fund's 52-week range in recent years demonstrates significant price swings that savvy investors can use to their advantage.

BLOK at a glance

ETF Issuer: Amplify

Inception: 2018-01-17

Asset Class: Equity

Underlying Index: BLOK is an active ETF

Geographical Focus: Global

Expense Ratio: 0.73% (as of last data point)

Dividend Yield: 4.88% (as of last data point)

Distribution Frequency: Annual

Historical Performance

BLOK's performance has been nothing short of impressive in recent years:

• YTD 2025 return: 12.02%

• Past 1 year's annualised return: 54.93%

• Past 3 years' annualised return: 31.03%

BLOK has outperformed the S&P 500 index in recent years, demonstrating the potential alpha generation of focused thematic investing.

ETF Radar View

The radar chart below shows the general characteristics of the ETF:

Top 3 Reasons to Invest

1. Early-Stage Mega-Trend Exposure: BlackRock CEO Larry Fink has recently advocated for the tokenisation of stocks and bonds, highlighting the transformative potential of blockchain in traditional finance. You're not just investing in crypto—you're positioning for the digitisation of the entire financial system.

2. Professional Active Management: The fund's portfolio managers actively seek opportunities to invest in new and emerging companies that utilise blockchain technologies, taking advantage of market pricing dislocations. This professional oversight can be invaluable in a rapidly evolving sector.

3. Diversified Blockchain Exposure: BLOK has 51 securities in its portfolio, with the top 10 holdings constituting 41.04% of assets, providing meaningful diversification across the blockchain ecosystem. The fund includes both established tech giants and innovative start-ups.

Top 3 Reasons Not to Invest

1. High Expense Ratio: BLOK's expense ratio of 0.73% is significantly higher than broad-market ETFs. For cost-conscious investors, this ongoing fee drag could negatively impact long-term returns, particularly if active management fails to add value consistently.

2. Sector Concentration Risk: Despite diversification within blockchain companies, BLOK remains concentrated in a single thematic area. The fund faces overlap challenges with broad-based tech ETFs and other niche products, such as FinTech ETFs, which may create concentration risk in tech-heavy portfolios.

3. Volatility and Timing Risk BLOK's price fluctuated by 5% in a single trading day, illustrating the high volatility inherent in this space. Conservative investors or those nearing retirement might find this volatility uncomfortable for their risk tolerance.

⛩️BLOK: Your Gateway to the Blockchain Revolution

BLOK represents a sophisticated approach to blockchain investing that goes beyond mere cryptocurrency speculation. With seven years of operational history, active management expertise, and exposure to the broader blockchain ecosystem, BLOK offers an attractive opportunity to participate in the digital transformation of the financial industry.

However, success is not guaranteed. The combination of high fees, sector concentration, and inherent volatility makes BLOK best suited for investors who understand and can tolerate these risks in exchange for the potential rewards of early-stage technology adoption.

Are you ready to explore the world of ETF investing in greater detail? Join the ETF UNO community for insights, analysis, and strategies that can help you navigate the ever-changing landscape of exchange-traded funds. Together, we will uncover opportunities that can contribute to your investment success, one ETF at a time.

DISCLAIMER: This article is for informational purposes only and should not be considered as investment advice. Always conduct your own research and consult with a financial advisor before making investment decisions.