The BLOK-Chain Monthly - Amplify ETFs
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AMPLIFY TRANSFORMATIONAL
DATA SHARING ETF
The BLOK-Chain Monthly
May 2021
Staying Up-to-date with the Rapidly Evolving
Blockchain and Crypto Ecosystem
By Dan Weiskopf and Mike Venuto, Toroso Investments, LLC
Portfolio Managers of the Amplify Transformational Data
Sharing ETF (BLOK)
Toroso is the Sub-Adviser for BLOK Amplify
ETFs
THE MANDATE TOP 10 HOLDINGS As Of 4/30/2021
Ticker Company % Weight
The Amplify Transformational Data Sharing ETF (BLOK) is the
first actively managed ETF seeking to identify leading companies MSTR MICROSTRATEGY INC-CL A 5.48%
which are focused on the transformation and development of GLXY CN GALAXY DIGITAL 4.72%
the blockchain and cryptocurrency markets. The managers PYPL PAYPAL HOLDINGS INC 4.68%
focus on how companies may capture the growth, innovation
MARA MARATHON DIGITAL 4.5%
and disruption of the blockchain paradigm shift. The internet
evolution changed how people communicate. We believe growth SQ SQUARE INC - A 4.4%
companies that embrace the blockchain evolution will capture VYGR CN VOYAGER DIGITAL LTD 4.27%
secular growth trends that are accelerating, and which disrupt
HUT CN HUT 8 MINING CORP 3.92%
core processes in business. According to MarketsandMarkets,
HVBTF HIVE BLOCKCHAIN TECH 3.52%
the size of the blockchain market is expected to grow from $3
billion in 2020 to $39.7 billion by 2025 – a compound annual ARB LN ARGO BLOCKCHAIN PLC 3.32%
growth rate (CAGR) of 67.3%. RIOT RIOT BLOCKCHAIN INC 3.29%
Holdings and allocations are subject to change at any time and should not be
considered a recommendation to buy or sell any security.
APRIL MONTHLY HIGHLIGHTS
Our goal in writing these monthly reports is to highlight the portfolio changes in a transparent and clear manner and be available for
questions. During the month of April, there were 15 changes to the holdings of BLOK, which both streamlined the number of positions
from 55 to 51 and increased the purity of blockchain-related revenue generated in the portfolio. This puts the Fund squarely at the
midpoint of the range of companies that we will hold (40-60 companies). An important aspect of the BLOK strategy is to identify
innovators and manage the portfolio in a diversified manner. Managing concentration risk in a portfolio full of innovation and disruption
helps keep us balanced and targeted on the long-term goal.
Portfolio Changes in April
Buys Symbol Action Portfolio %
COINBASE GLOBAL INC COIN US New 1.95%
MOGO INC MOGO CN Increased 1.95%
WISDOMTREE INVESTMENTS WETF US Increased 0.68%
ARGO BLOCKCHAIN PLC ARB LN Increased 4.08%
CLEANSPARK INC CLSK US Increased 2.37%
DIGITAL GARAGE INC 4819 JP Increased 2.95%
GMO INTERNET INC 9449 JP Increased 2.85%
MUDRICK CAPITAL ACQUISITION MUDS US New 0.90%
NOCTURNE ACQUISITION MBTCU US New 0.29%
Sells Symbol Action Portfolio %
HONEYWELL INTERNATIONAL INC HON US Sold 0.67%
PLUS500 LTD PLUS LN Sold 0.84%
CHINA CONSTRUCTION BANK-H 939 HK Sold 0.65%
KAKAO CORP 035720 KS Sold 1.00%
ONECONNECT FINANCIAL TECH OCFT US Sold 0.58%
SAMSUNG ELECTRONICS CO 005930 KS Sold 0.47%
The BLOK-Chain Monthly • May 2021 p2
MANAGING RISK Worst Losses As Of 4/30/2021
% Average Total Contribution
The fund declined 4.72% for the month of April, but as the Company Weight Return to Return (%)
table below illustrates, no single name was the cause of the
decline. The largest single impact to the portfolio came from 4 EBANG INTERNATIONAL HLDGS-A 1.53% -48.55% -1.12%
companies which individually were down dramatically, but due HUT 8 MINING CORP 3.92% -26.7% -1.15%
to sizing constraint individually reduced the portfolio return by
about 1.15% each. We think this is important as it illustrates how MARATHON DIGITAL HOLDINGS 4.5% -23.41% -1.16%
diversified our holdings are while also remaining nimble in how
CANAAN INC 2.46% -39.48% -1.19%
we identify the leadership in this transformative space. It should
be noted that at one point Canaan was the largest holding in the Holdings and allocations are subject to change at any time and should not be
Fund, but we made the active decision to reduce in a tax-efficient considered a recommendation to buy or sell any security
manner. Due to active rebalancing, Canaan has been a positive
contributor to the portfolio performance since its original inclusion in the Fund.
Bitcoin Mining historically has provided a correlation to Bitcoin. In times of stress, this correlation may diminish, but over time we are
confident that their correlation to price will return. These mining companies are both producing bitcoin for their own accounts and
are expected to generate revenue growth as new equipment comes goes online. Global revenue growth for the Bitcoin mining sector
increased to $1.5 billion in April, and we expect North American miners to take market share in the back half of 2021.
(XBTUSD shows the recent price movements of Bitcoin; the Fund does not invest directly in Bitcoin; however, it currently has indirect exposure through an investment
in the Grayscale Bitcoin Trust – GBTC. The Fund does not track the spot price of bitcoin. Bitcoin performance is provided for informational purposes only and does not
represent the Fund. Past performance does not guarantee future results. Short-term performance may often reflect conditions that are likely not sustainable, and thus such
performance may not be repeated in the future).
Broadly speaking, it is clear that certain investors have been favoring value over growth in 2021. Timing a change in this factor
phenomena has been a challenge for years as growth has outperformed value consistently. While our bias is clear, whether value will
remain in vogue will remain to be seen; but make no mistake about it, the blockchain phenomena appears to be much bigger than just
value versus growth. The internet came and changed the world, and we believe blockchain technology has the potential to do the same.
The BLOK-Chain Monthly • May 2021 p3GETTING INTO SPECIFICS
BLOK has an approximate 25% weighting in the crypto mining space. We believe the temporary correlation breakdown with the price
of Bitcoin and the miners will revert in the near term. BLOK has experienced a correlation of around 70 to 80% to Bitcoin over the
past 12 to 18 months, and part of this correlation has been achieved through the miners. The rapidly growing Global Bitcoin Mining
industry has been tracking a monthly revenue run rate of about $20-$25 billion with the price of 1 Bitcoin at $50,000, and we expect
the companies we own will take a material share of the growth of this industry as their equipment comes online. Coinbase (COIN),
which came public on April 16, also may have contributed to headwinds as certain investors sold the miners to buy Coinbase stock. The
correlation of Coinbase to the price of Bitcoin will remain a question that will only be evidenced over time, but we do not own it for that
reason. We were early investors in Square (SQ), Paypal (PYPL) and Voyager (VYGRF), and we believe the Coinbase model will evolve to
become an essential part of individual digital wallets that millions of people are already embracing.
(XBTUSD shows the recent price movements of Bitcoin; the Fund does not invest directly in Bitcoin; however, it currently has indirect exposure through an investment
in the Grayscale Bitcoin Trust – GBTC. The Fund does not track the spot price of bitcoin. Bitcoin performance is provided for informational purposes only and does not
represent the Fund. Past performance does not guarantee future results. Short-term performance may often reflect conditions that are likely not sustainable, and thus such
performance may not be repeated in the future).
See the BLOK website for further details: https://amplifyetfs.com/blok
SUMMARY
BLOK is up 51.26% year-to-date (as of 4/30/2021). While the secular trends remain strong, valuation metrics for growth stocks may
change in the short term. We do not think valuation metrics reflect the inherent business momentum in the group. The economic
savings earned by the blockchain should not be materially disrupted by market factors. Additionally, the price momentum of crypto
may be volatile, but evidence of the adoption rate has continued to be strong.
The BLOK-Chain Monthly • May 2021 p4APPENDIX: Monthly Detailed Performance Contribution Chart As Of 4/30/2021
% Average Weight Total Return (%) Contribution to Return (%)
AMPLIFY TRANSFORMATIONAL DATA SHARING ETF 100% -4.72% -4.72%
Financials 18.56 3.29 0.49
GALAXY DIGITAL HOLDINGS LTD 4.72 40.80 1.63
MOGO INC 0.79 9.17 0.18
PLUS500 LTD 0.67 8.18 0.07
NASDAQ INC 0.62 9.55 0.05
INTERCONTINENTAL EXCHANGE IN 0.93 5.40 0.05
WISDOMTREE INVESTMENTS INC 0.55 8.56 0.04
SBI HOLDINGS INC 3.00 4.14 0.04
VONTOBEL HOLDING AG-REG 0.57 1.47 0.00
CHINA CONSTRUCTION BANK-H 0.17 -0.04 0.00
CME GROUP INC 1.40 -1.10 -0.02
COINBASE GLOBAL INC -CLASS A 0.87 -7.78 -0.14
DIGINEX LTD 1.34 -43.12 -0.68
SILVERGATE CAPITAL CORP-CL A 2.94 -24.58 -0.73
Consumer Discretionary 4.95 10.84 0.48
OVERSTOCK.COM INC 1.94 23.00 0.41
AMAZON.COM INC 0.20 6.63 0.05
RAKUTEN GROUP INC 0.54 6.47 0.03
ALIBABA GROUP HOLDING-SP ADR 1.42 1.86 0.02
TESLA INC 0.38 3.75 0.01
JD.COM INC-ADR 0.47 -8.27 -0.04
Communication Services 5.04 4.44 0.22
KAKAO CORP 0.77 19.49 0.18
ALPHABET INC-CL A 0.88 14.11 0.11
SOFTBANK GROUP CORP 0.86 7.12 0.05
TENCENT HOLDINGS LTD 0.55 2.23 0.01
BAIDU INC - SPON ADR 0.59 -3.32 -0.02
Z HOLDINGS CORP 1.39 -7.27 -0.11
Industrials 0.74 2.75 0.01
HONEYWELL INTERNATIONAL INC 0.74 2.75 0.01
Not Classified 6.56 -5.14 -0.32
NOCTURNE ACQUISITION CORP 0.28 1.00 0.00
STIT GOVT & AGENCY-INST 2.55 0.00 0.00
US DOLLAR -0.03 0.00 0.00
MUDRICK CAPITAL ACQUISITIO-A 0.03 -3.47 -0.02
GRAYSCALE BITCOIN TRUST BTC 2.68 -6.37 -0.14
VPC IMPACT ACQUISITION HLD-A 1.04 -15.78 -0.17
(continued on next page)
The BLOK-Chain Monthly • May 2021 p5APPENDIX: Monthly Detailed Performance Contribution Chart As Of 4/30/2021
% Average Weight Total Return (%) Contribution to Return (%)
Information Technology 64.15 -9.01 -5.60
PAYPAL HOLDINGS INC 4.68 8.01 0.27
BITFARMS LTD/CANADA 2.43 6.16 0.24
SQUARE INC - A 4.40 7.83 0.22
NVIDIA CORP 2.22 12.45 0.22
VISA INC-CLASS A SHARES 1.18 10.31 0.11
INTL BUSINESS MACHINES CORP 1.50 6.47 0.10
OPERA LTD-ADR 1.12 8.50 0.09
ORACLE CORP 1.32 8.48 0.09
MICROSOFT CORP 0.25 7.41 0.06
ACCENTURE PLC-CL A 1.17 5.29 0.05
ADVANCED MICRO DEVICES 0.77 3.97 0.03
SAMSUNG ELECTRONICS CO LTD 0.46 1.90 0.01
ONECONNECT FINANCIAL TECHNO 0.44 1.56 0.00
TAIWAN SEMICONDUCTOR-SP ADR 0.79 -1.30 -0.01
GMO INTERNET INC 2.51 3.81 -0.02
HIVE BLOCKCHAIN TECHNOLOGIES 3.52 -1.58 -0.03
CLEANSPARK INC 1.83 -9.53 -0.04
DIGITAL GARAGE INC 2.49 1.10 -0.08
NORTHERN DATA AG 2.28 -3.06 -0.13
MICROSTRATEGY INC-CL A 5.48 -3.19 -0.22
ARGO BLOCKCHAIN PLC 3.32 -19.21 -0.53
VOYAGER DIGITAL LTD 4.27 -13.50 -0.61
RIOT BLOCKCHAIN INC 3.29 -21.48 -0.79
EBANG INTERNATIONAL HLDGS-A 1.53 -48.55 -1.12
HUT 8 MINING CORP 3.92 -26.70 -1.15
MARATHON DIGITAL HOLDINGS IN 4.50 -23.41 -1.16
CANAAN INC 2.46 -39.48 -1.19
Holdings and allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security.
BLOK PERFORMANCE Quarter End as of March 31, 2021
Cumulative (%) Annualized (%)
1 Mo. 3 Mo. 6 Mo. YTD Since Inception 1 Yr. 3 Yr. Since Inception
Fund NAV 9.40% 60.08% 132.32% 60.08% 193.20% 264.78% 45.21% 39.92%
Closing Price 10.29% 59.63% 132.11% 59.63% 193.94% 270.14% 45.39% 40.02%
Fund inception date: (1/17/2018). The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and
principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may
be lower or higher than the performance quoted. Short-term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not
be made based solely on returns. For performance data current to the most recent month-end please call 855-267-3837 or visit AmplifyETFs.com/BLOK. Brokerage commissions
will reduce returns. BLOK’s gross expense ratio is 0.71%.
The BLOK-Chain Monthly • May 2021 p6Carefully consider the Fund’s investment ob- nomic returns for any company in which the Fund vehicle in its portfolio may cause the Fund to trade
invests. at a premium or discount to NAV. Many significant
jectives, risk factors, charges, and expenses
aspects of the U.S. federal income tax treatment
before investing. This and additional infor- The Fund invests at least 80% of the Fund’s net assets of investments in cryptocurrencies are uncertain
mation can be found in Amplify Funds statu- in equity securities of companies actively involved in and such investments, even indirectly, may produce
tory and summary prospectus, which may be the development and utilization of blockchain tech- non-qualifying income for purposes of the favorable
nologies. Such investments may be subject to the U.S. federal income tax treatment generally accord-
obtained above or by calling 855-267-3837, following risks: the technology is new and many of ed to regulated investment companies.
or by visiting AmplifyETFs.com. Read the its uses may be untested; theft, loss or destruction;
prospectus carefully before investing. competing platforms and technologies; cyberse- Amplify Investments LLC is the Investment Adviser
curity incidents; developmental risk; lack of liquid to the Fund, and Toroso Investments, LLC serves as
Click HERE for BLOK’s top 10 holdings. markets; possible manipulation of blockchain-based the Investment Sub-Adviser.
assets; lack of regulation; third party product de-
Click HERE for BLOK’s prospectus. fects or vulnerabilities; reliance on the Internet; and Amplify ETFs are distributed by Foreside Fund Ser-
line of business risk. The investable universe may in- vices, LLC.
Investing involves risk, including the possible loss of prin- clude companies that partner with or invest in other
cipal. Shares of any ETF are bought and sold at market companies that are engaged in transformational data
price (not NAV), may trade at a discount or premium to sharing or companies that participate in blockchain
NAV and are not individually redeemed from the Fund.
The Fund’s return may not match or achieve a high de-
gree of correlation with the return of the underlying In-
industry consortiums. The Fund will invest in the
securities of foreign companies. Securities issued by
foreign companies present risks beyond those of se-
Amplify ETFs
dex.The Fund is subject to management risk because curities of U.S. issuers.
it is actively managed. Narrowly focused invest- QUESTIONS?
ments typically exhibit higher volatility. A portfolio The Fund may have exposure to cryptocurrencies
concentrated in a single industry, such as companies such as bitcoin indirectly through investment funds, Visit AmplifyETFs.com/BLOK
actively engaged in blockchain technology, makes including through an investment in the Bitcoin In-
it vulnerable to factors affecting the companies. vestment Trust (“GBTC”), a privately offered, open- Phone 855-267-3837
The Fund may face more risks than if it were diver- end investment vehicle. Even when held indirectly,
sified broadly over numerous industries or sectors. investment vehicles like GBTC may be affected by
Email info@AmplifyETFs.com
Blockchain technology may never develop optimized the high volatility associated with cryptocurrency
transactional processes that lead to realized eco- exposure. Holding a privately offered investmentYou can also read
