Blockchain Is Not Bitcoin
Why that Matters to Investors
Everyone (of a certain age and above) remembers the wailing series of electronic burps and buzzes that signaled your dial-up connection coming to life. Today, the internet is as close as the phone in your pocket. We may be witnessing a
similar revolution today with blockchain, the technology that makes cryptocurrencies possible. But blockchain is far more than bitcoin – it is likely to totally transform how we make payments, transfer ownership of items, and verify the authenticity of transactions.
Dollars Don't Lie
Blockchain is simply an encrypted digital database shared by different parties in a distributed (decentralized) network. This may not sound that exciting, but the idea that digital records can be accurately and reliably maintained and updated has resulted in substantial investments by hundreds of companies in dozens of industries. For example:
Advantages of Blockchain Technology
It appears, the adoption of blockchain technology could disrupt many traditional business models by providing benefits such as:
- Greater transparency in record keeping with a single, trusted version of the truth
- Significant cost savings when sharing information between parties
- Operational efficiencies and increased opportunity for automation
- Enhanced security through use of decentralized, encrypted digital database
How Can Investors Participate in the Growth of this Promising Technology?
The adoption of blockchain is poised to increase significantly in the next five years and beyond. Given the number of leading companies already investing and utilizing this technology, it is clearly seen as a game-changer. One option for investors interested in blockchain is the Amplify Transformation Data Sharing ETF (Blok), an actively managed ETF compromised of companies involved in blockchain technology.
Disclosure
Carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund's prospectus, which may be obtained by calling 855-267-3837 or visiting AmplifyETFs.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The Fund is subject to management risk because it is actively managed. Narrowly focused investments typically exhibit higher volatility. A portfolio concentrated in a single industry, such as companies actively engaged in blockchain technology, makes it vulnerable to factors affecting the companies. The Fund may face more risks than if it were diversified broadly over numerous industries or sectors. Blockchain technology may never develop optimized transactional processes that lead to realized economic returns for any company in which the Fund invests.
The Fund will invest at least 80% of the Fund's net assets in equity securities of companies actively involved in the development and utilization of blockchain technologies. Such investments maybe subject to the following risks: the technology is new and many of its uses maybe untested; theft, loss or destruction; competing platforms and technologies; cyber security incidents; developmental risk; lack of liquid markets; possible manipulation of blockchain-based assets; lack of regulation; third party product defects or vulnerabilities; reliance on the Internet; and line of business risk. The investable universe may include companies that partner with or invest in other companies that are engaged in transformational data sharing or companies that participate in blockchain industry consortiums. The Fund will invest in the securities of foreign companies. Securities issued by foreign companies present risks beyond those of securities of U.S. issuers.
The Fund may have exposure to crypto currencies such as bitcoin indirectly through investment funds, including through an investment in the Bitcoin Investment Trust ("GBTC"), a privately offered, open-end investment vehicle. Even when held indirectly, investment vehicles like GBTC maybe affected by the high volatility associated with crypto currency exposure. Holding a privately offered investment vehicle in its portfolio may cause the Fund to trade at a premium or discount to NAV. Many significant aspects of the U.S. federal income tax treatment of investments in crypto currencies are uncertain and such investments, even indirectly, may produce non-qualifying income for purposes of the favorable U.S. federal income tax treatment generally accorded to regulated investment companies.
Amplify Investments LLC is the Investment Adviser to the Funds, and Toroso Investments, LLC serves as the Investment Sub-Adviser.
Amplify ETFs are distributed by Foreside Fund Services, LLC.
Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in Amplify Funds statutory and summary prospectus, which may be obtained by calling 855-267-3837 or by visiting AmplifyETFs.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
Amplify ETFs are distributed by Foreside Fund Services, LLC.