Blockchain Basket Beats Gold and Bitcoin During Pandemic

Photographer: Artur Widak/NurPhoto/Getty

Gold and its digital counterpart, Bitcoin, have had a pretty good run among investors seeking a haven or those willing to take a punt on cryptocurrency.

But they’ve been pipped in the past year by another investment thesis that’s perhaps a little more tangible, highlighting the old adage that it’s smartest to be selling shovels in a gold rush.

Instead of buying into either asset, those who threw their money behind a basket of companies with exposure to blockchain technologies would have returned 54% over the past year, even after the recent rout that’s hit global tech stocks the hardest.

 Gold is up just 27% over that time, despite a boom since March, while Bitcoin is actually down 1.8%. 

Elwood Asset Management LLP’s Blockchain Global Equity Index — ticker: BLOCK — is a collection of 45 companies involved in the blockchain ecosystem, a technology that deploys cryptography to store information in distributed ledgers and is resistant to modification or manipulation. Its top-three holdings are Taiwan Semiconductor Manufacturing Co., Kakao Corp. and Monex Group Inc. 

Revolutionary Returns

Companies connected to the blockchain ecosystem fared well over the past year

Source: Bloomberg