A Cambridge research report published by Invesco Ltd. (NYSE: IVZ) explains how blockchain technology has become more and more institutional to the benefit of end-users.
The blockchain industry has evolved exponentially over the past 18 months, thanks largely to its ability to transform the archive and digital asset management across organizations, which has generated plenty of opportunities for investors. That is what emerges from the report “Hyper Real: An Overview Of Global Blockchain Industry Trends”, written by Keith Bar and Michel Rauchs, respectively Fellow and Research Affiliate of the Cambridge Judge Business School’s Center for Alternative Finance, and published by Invesco.
Business Technology Is Evolving: The report examines in detail the industry developments and key trends that are shaping the long-term trajectory of blockchain, and highlights four main phenomena. First of all, business technology is evolving, according to the analysis. As a matter of fact, organizations have begun to market blockchain networks for companies operating in the insurance, banking, financing, and commercial shipping sectors. By way of example, over 50% of global container traffic has been committed to running on the blockchain.
Cryptoassets And More: Secondly, the report highlights that while much of the public attention is focused on cryptoassets, other blockchain assets are also on the rise, including digital coins and tokens that are modernizing financial markets. The third point highlighted by the Cambridge researchers is that regulators across the world are accelerating the process of integrating cryptoassets and other digital assets into the legacy regulated financial system.
Focus On User Experience: The last point highlighted by the report is the secondary role blockchain is now playing after years as a protagonist. In fact, attention is shifting more and more from technology to user experience and commercial observations. Blockchain components easily integrate into the traditional companies’ IT structure all for the benefit of end-users, who are unaware of back-end complexities.
An Increasingly Institutional Market: “The growing activity on central bank digital currency, stablecoin, and tokenized assets suggests important new means to facilitate trade, payments and investment in the evolving digital economy,” said Keith Bear. “What used to be largely a retail-driven market is now becoming more institutional, as ‘unicorns’ and startups, brokers, custodians, institutional trading platforms and global banks have created a range of digital asset products and services. Decentralized and corporate blockchain applications are also on the rise, driven by the growth of vast software libraries and developer tools”.
Invesco Elwood Global Blockchain UCITS ETF: In March 2019, Invesco launched Invesco Elwood Global Blockchain UCITS ETF, Europe’s largest technology investing exchange-traded fund, which closed 2020 with $417 million in assets under management. “The challenge for any investor looking to gain exposure to the blockchain theme is how to do it effectively,” said Franco Rossetti, Senior Relationship Manager ETF Specialist at Invesco. “There is no such thing as a ‘blockchain sector’ in which to invest. On the other hand, companies generating revenue from technology, or having the potential to do so, are spread across multiple industries, and they range from startups to large corporations. We launched Invesco Elwood Global Blockchain UCITS ETF to provide investors with diversified exposure to an index built by digital asset experts.”
This article originally appeared on Financialounge.com and was translated from Italian to English. It does not represent the opinion of Benzinga and has not been edited.
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