Are You Ready for the Blockchain Blastoff?

When will the cryptocurrency market take off?

That’s easy. When institutional investors start to throw even a small part of their trillions of dollars into it.

But before mutual funds, pensions, endowments and hedge funds start to buy cryptocurrencies the way they buy other assets, they will first dip their toes into the crypto market.

They will do this by investing in stocks that are connected to cryptocurrencies.

I’m talking about the companies that provide the basic building blocks — the pickaxes and shovels — of blockchain, which is the underlying technology that makes cryptocurrencies possible.

Originally created for Bitcoin, blockchain is the backbone of a “new” internet that is used to store digital information in a public database.

Pension Funds Investing in Crypto is a HUGE Deal

It turns out that there are thousands, perhaps millions, of different applications for blockchain. This is where I think the biggest crypto profits are to be made.

Guess what? For the first time ever, one of the old-but-big institutional investors is investing in blockchain in a major way.

Morgan Creek, run by my friend Mark Yusko, is one of the most successful institutional investors in the country. It has raised $40 million for a blockchain-focused venture capital fund.

What makes it notable is not the $40 million — that’s chump change in the institutional world — but that:

  • Two of the investors are public pension funds, which is the first time a U.S. pension fund has invested in blockchain, and
  • This strong demand expanded the fund from $25 million to $40 million.

Don’t forget that pension funds are very conservative by nature. After all, they are responsible for the reliable provision of retirement income for its beneficiaries.

In other words, you don’t roll the dice with people’s pension dollars.

The Morgan Creek Blockchain Opportunity Fund is important because not only is it the fusion of traditional venture capital and cryptocurrency/blockchain, but because I expect this to open the floodgate of big, institutional money.

“More investors will gain familiarity with digital assets over time, which ultimately leads to comfort. As investors get comfortable, they’ll begin investing more capital in the space,” said Anthony Pompliano of Morgan Creek.

Where will that flood of money get invested?

The same place that Morgan Creek is investing:

At least 85% of the Morgan Creek Blockchain Opportunities Fund must be invested in blockchain technology firms.

That happens to be same type of stocks that I am recommending in my Weiss Crypto Investor service. If you want to get in front of the tidal wave of institutional money, I suggest you consider a no-risk trial subscription to my newsletter. I think you’ll be very happy with the results.

If you’re more of an ETF investor and want broad exposure to the overall blockchain industry, take a look at:

  • Amplify Transformational Data Sharing ETF (BLOK)
  • Reality Shares Nasdaq NexGen Economy ETF (BLCN)
  • First Trust Indxx Innovative Transaction & Process ETF (LEGR)
  • Innovation Shares NextGen Protocol ETF (KOIN)

Don’t be concerned that none of the above ETFs use the word “blockchain” in their name. The SEC has prohibited the ETF industry from using blockchain in their name.

For full disclosure, BLOK is an active recommendation in our Weiss Ratings Crypto Investor newsletter. It’s up 20.8% year-to-date, and I think there is a lot more upside where that came from.

Regardless of which vehicle — individual stocks or ETFs — you choose, we’re talking about the type of profits that could set you up for life. I’m talking grand slam, home run type of profits … so get on board.

Best wishes,
Tony Sagami

About the Technology Analyst

Even in the worst years for stocks, Tony was twice named “Portfolio Manager of the Year” by Thomson Financial. He was one of the first to introduce computer software for trading stocks. And in the early 2000s, he wrote “The Supernet,” providing a vision of the future internet that was far ahead of its time.

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