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As the capital markets wait for a potential Bitcoin exchange-traded fund (ETF), investors can indirectly gain exposure to the phenomenon with funds like the Global X FinTech ETF (FINX).
Like precious metals investors who use miners as a backdoor, exposure to crypto can be obtained with companies that focus on blockchain technology. Blockchain is the technology behind cryptocurrencies with its ledger-based functions to manage transaction data.
One of the main titles of FINX, accounting software company Intuit, offers Bitcoin accounting functionality in its popular QuickBooks software. As more fintech companies embrace ways to incorporate cryptocurrencies into their products, the move could provide further favorable winds for FINX.
“We create accounts in your chart of accounts for each Bitcoin / xPub address,” the Intuit website said. “Transactions are automatically created in the account when they occur, with the exchange rate attached. For outgoing transactions, the application also records the gain or loss in an income account. You can manually set the QuickBooks client, memo, tax code, and transaction type, or you can create a rule to set them automatically.
In accordance with the fund description, FINX seeks to provide investment results that match the Indxx Global Fintech thematic index. The index is designed to provide exposure to publicly traded companies in developed markets that provide financial technology products and services, including companies involved in mobile payments, peer-to-peer (P2P) lending and markets, financial analysis software and alternative currencies as defined by the index provider.
The fund offers investors exposure to:
Inordinate Growth Potential: FINX enables investors to access high growth potential through companies that apply technological innovations to disrupt and improve the delivery of financial services. An unconstrained approach: the composition of funds transcends classic sectoral, industrial and geographic classifications by following a theme.ETF Efficiency: In a single transaction, FINX offers access to dozens of companies strongly exposed to the theme of fintech.
Fintech embraces crypto
Movers and shakers in the fintech industry are already embracing the crypto space. This should continue to fuel the growth component of FINX and provide investors with additional upside in the long term.
Bitcoin’s meteoric rise – from $ 10,000 from last year’s listing to a record $ 65,000 in April and other major cryptocurrencies in recent months have achieved a record eight spots on this year’s Fintech 50 list for blockchain and cryptocurrency-focused companies, ”a Forbes article said.
For more news and information, visit the thematic investment channel.
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