what is blockchain technology? why invest in … · the amplify transformational data sharing etf...

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WHAT IS BLOCKCHAIN TECHNOLOGY? Blockchain is a decentralized digital ledger of economic transactions. Hosted by a peer-to-peer network of multiple computers, information on the blockchain is stored in “blocks” that are identical across the network, assuring that data and transactions on the blockchain are transparent, verifiable, secure, and incorruptible without the need for an intermediary. Blockchain is a foundational technology capable of disrupting and transforming many industries. e potential of blockchain has led many to liken it to the early days of the internet. BLOCKCHAIN INVESTMENT CASE ESTIMATED COMPOUND ANNUAL GROWTH RATE (CAGR) OF BLOCKCHAIN BY 2023 2 48% AmplifyETFs.com/BLOK AMPLIFY TRANSFORMATIONAL DATA SHARING ETF $3.1 TRILLION ESTIMATED BUSINESS VALUE-ADD BY 2030 1 WHY INVEST IN BLOCKCHAIN? GROWING GLOBAL OPPORTUNITY According to Gartner Group, Blockchain is estimated to have delivered $4 billion in business value-add or technology innovation in 2017, with that growing to $21 billion by 2020, $176 billion in 2025, and $3.1 trillion by 2030. 1 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 (billions) 2017 2020 2025 2030 $4 billion $21 billion $176 billion $3.1 trillion . BLOCKCHAIN DISRUPTION Although still in its nascent stage, blockchain is a foundational technology with the potential to disrupt many different industries and areas over the next five to ten years. According to Deutsche Bank, around 10% of the worldwide GDP could be regulated by the blockchain by 2027. 3 Banking & Payments Cyber Security Supply Chain Internet of Things Insurance Charity Voting Healthcare Energy Media Retail Public Sector Real Estate 1 2

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Page 1: WHAT IS BLOCKCHAIN TECHNOLOGY? WHY INVEST IN … · The Amplify Transformational Data Sharing ETF (BLOK) provides access to an actively-managed basket of global companies at the forefront

WHAT IS BLOCKCHAIN TECHNOLOGY?Blockchain is a decentralized digital ledger of economic transactions. Hosted by a peer-to-peer network of multiple computers, information on the blockchain is stored in “blocks” that are identical across the network, assuring that data and transactions on the blockchain are transparent, verifiable, secure, and incorruptible without the need for an intermediary. Blockchain is a foundational technology capable of disrupting and transforming many industries. The potential of blockchain has led many to liken it to the early days of the internet.

BLOCKCHAININVESTMENT CASE

ESTIMATED COMPOUND ANNUAL GROWTH RATE (CAGR) OF BLOCKCHAIN BY 20232

48%

AmplifyETFs.com/BLOK

AMPLIFY TRANSFORMATIONAL DATA SHARING ETF

$3.1 TRILLIONESTIMATED BUSINESS VALUE-ADD BY 20301

WHY INVEST IN BLOCKCHAIN?

GROWING GLOBAL OPPORTUNITYAccording to Gartner Group, Blockchain is estimated to have delivered $4 billion in business value-add or technology innovation in 2017, with that growing to $21 billion by 2020, $176 billion in 2025, and $3.1 trillion by 2030.1

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500 (billions)

2017 2020 2025 2030

$4 billion $21 billion $176 billion

$3.1 trillion

. BLOCKCHAIN DISRUPTIONAlthough still in its nascent stage, blockchain is a foundational technology with the potential to disrupt many different industries and areas over the next five to ten years. According to Deutsche Bank, around 10% of the worldwide GDP could be regulated by the blockchain by 2027.3

Banking & Payments

CyberSecurity

SupplyChain

Internetof Things Insurance Charity

Voting Healthcare Energy Media Retail

PublicSector

RealEstate

1

2

Page 2: WHAT IS BLOCKCHAIN TECHNOLOGY? WHY INVEST IN … · The Amplify Transformational Data Sharing ETF (BLOK) provides access to an actively-managed basket of global companies at the forefront

BROAD-BASED POTENTIALThe broad-based potential of blockchain technology across many different industry verticals and use cases has driven significant investment into blockchain and its applications, fueling innovation and fostering a growing market opportunity.

Source: CB-Insights, Q3 2017 Corporate and Corporate Venture Capital (CVC) includes diversified financial institutions, investment banks, and commercial banks.

COST-SAVINGSWhy are corporate investors embracing the blockchain? Besides the growth potential, another big reason is cost savings.

Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds’ statutory and summary prospectus, which may be obtained by calling 855-267-3837 or by visiting AmplifyETFs.com. Read the prospectus carefully before investing.Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. The Fund is subject to management risk because it is actively managed. Narrowly focused investments typically exhibit higher volatility. A portfolio concentrated in a single industry, such as blockchain-based companies, makes it vulnerable to factors affecting the companies. The Fund may face more risks than if it were diversified broadly over numerous industries or sectors. The Fund will make investments in companies developing or utilizing transformational data sharing technologies. Such investments may be subject to the following risks: the technology is new and many of its uses may be untested; theft, loss or destruction; competing platforms and technologies; cyber security incidents; developmental risk; lack of liquid markets; possible manipulation of blockchain-based assets; lack of regulation; third party product defects or vulnerabilities; reliance on the Internet; and line of business risk. The Fund will invest in the securities of foreign companies. Securities issued by foreign companies present risks beyond those of securities of U.S. issuers.

Amplify Investments LLC is the Investment Adviser to the Fund, and Toroso Investments, LLC and Exponential ETFs serve as the Investment Sub-Advisers.

Ampify ETFs are distributed by Quasar Distributors LLC.

The Amplify Transformational Data Sharing ETF (BLOK) provides access to an actively-managed basket of global companies at the forefront of this foundational technology.

Contact Amplify ETFs to discuss BLOK in more detail.

ONLINE: AmplifyETFs.com/BLOK EMAIL: [email protected] PHONE: 855-267-3837 (855-AMP-ETFS)

AmplifyETFs.com/BLOK

0

20

40

60

80

100

120

2012 2013 2014 2015 2016 2017

6

Corporate and CVC

3

40

18

10089

113

69

90 91 95

Venture Capital

Blockchain Annual Active Investment by TypeEquity Deals: 2012 - YTD 2017 (as of 10/8/17)

OF EXECUTIVES ACTIVELY ENGAGED IN BLOCKCHAIN ARE USING OR CONSIDERING IT TO DEVELOP NEW BUSINESS MODELS.4

80%

1 “Practical Blockchain: A Gartner Trend Insight Report.” David Furlonger and Ray Valdes, March 3, 20172 Research and Markets, November 22, 20173 Cryptocurrencies and Blockchains – Their Importance in the Future4 IBM Study: Blockchain Adoption on the Rise, 5/23/17

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