Blockchain’s potential creating ‘new Digital Age’

Date

May 6, 2019

Published by Harvest ETFs

The message at a conference in Toronto looking at all aspects of Blockchain technology was that while the crash of crypto currencies has grabbed the headlines, the revolution behind the currencies is rapidly spreading.

The two-day Blockchain Revolution Global event was organized by Don Tapscott who heads up the Toronto-based Blockchain Research Institute. In his opening remarks, Tapscott said the ability of this shared ledger technology to change business, is creating a second Digital Age. He compared those who doubt the staying power of Blockchain to those who thought the Internet was a fad in 1995.

Tapscott, who specializes in the social and economic impact of technology, said the Internet has emerged as a medium that reproduces information with the original stored elsewhere. This can include e-transfers of money, credit card loyalty points, votes, or deeds and contracts.

This means a middle man stores and keeps track of transactions, whether a bank, government agency, or third-party data collector. These centralized mechanisms slow business transactions and the information they store can be hacked. They also introduce a layer of expense through fees and capture personal data which they resell without any payment to us. We give our consent in long, poorly understood legal disclaimers when we use their services, Tapscott said. It undermines our privacy, he said.

Blockchain applications remove the need for a middle man, cutting costs and speeding up transactions. They do this because transactions are shared among partners in a contract or business deal, so each has the same information. Everyone can see the transactions when entered and once entered nobody can change them.

Tapscott noted 10 areas where these applications are being used from government and banking to logistics, transportation and food safety.

Harvest Portfolio Group Inc. launched Canada’s first Blockchain ETF in February, 2018. The Blockchain Technologies ETF (TSX: HBLK) holds 20 stocks exposed to the development and implementation of Blockchain and distributed ledger technologies.

Ten core large cap holdings account for approximately 46% of the ETF. They include IBM, which was a sponsor of the Toronto Conference.

The ETF had an average market capitalization of US $160 billion as at April 30, 2019, an average dividend yield of 0.67% and a management fee of 0.65%.

For more on the Harvest Blockchain Technologies ETF, click here.

The views and/or opinions expressed in the blog are of a general nature and are for informational purposes only. Blog contents should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies. Investors should consult their investment advisor before making any investment decision. 

 

Disclaimer

For Information Purposes Only. All comments, opinions and views expressed are of a general nature and should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies.

You will usually pay brokerage fees to your dealer if you purchase or sell units of the Fund(s) on the TSX. If the units are purchased or sold on the TSX, investors may pay more than the current net asset value when buying units of the Fund(s) and may receive less than the current net asset value when selling them. There are ongoing fees and expenses associated with owning units of an investment fund. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the fund in these documents.

Certain statements in the Harvest Blog are forward looking Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS.

FLS are not guarantees of future performance and are by their nature based on numerous assumptions, which include, amongst other things, that (i) the Fund can attract and maintain investors and have sufficient capital under management to effect their investment strategies, (ii) the investment strategies will produce the results intended by the portfolio managers, and (iii) the markets will react and perform in a manner consistent with the investment strategies. Although the FLS contained herein are based upon what the portfolio manager believe to be reasonable assumptions, the portfolio manager cannot assure that actual results will be consistent with these FLS.

Unless required by applicable law, Harvest Portfolios Group Inc. does not undertake, and specifically disclaim, any intention or obligation to update or revise any FLS, whether as a result of new information, future events or otherwise.