Investing in Crypto's Backbone: New ETFs Focus on Infrastructure

Amplify ETFs has introduced two new funds that let investors bet on the companies powering blockchain technology, rather than the cryptocurrencies themselves. The Amplify Stablecoin Technology ETF (STBQ) and Amplify Tokenization Technology ETF (TKNQ) began trading recently. These funds invest in companies that make money from stablecoins, tokenized assets, and the systems that support them. Stablecoins, which are digital currencies pegged to traditional assets, are becoming more popular. They are no longer just used for crypto trading. They are now being used for payments and settlements in traditional finance. The STBQ ETF invests in companies like Visa, Mastercard, and PayPal. It also invests in crypto-linked ETFs from Grayscale, iShares, and Bitwise.Tokenization is another area of growth. It involves digitizing real-world assets and financial processes. The TKNQ ETF invests in companies like BlackRock, JPMorgan, and Citigroup. These companies have been investing in tokenization technology in recent years. Regulatory changes have made it easier for these funds to exist. In the U. S. , the GENIUS Act and Europe's MiCA framework have provided clarity around stablecoins. This has given financial institutions the confidence to develop compliant stablecoin products. Tokenization is also gaining momentum as regulators engage more with the concept. These ETFs are part of a wider trend. Investors are looking for options beyond volatile cryptocurrencies. They are focusing on the companies building compliant, revenue-generating infrastructure for blockchain-based finance. For those cautious about crypto's ups and downs, these ETFs provide a way to engage with the industry's growth without the intense volatility.