TRise of digital fintech technology during and after COVID-19 pandemic fuels growth of ETF Innovation Shares NextGen Protocol [KOIN] which brings together hardware and software technological actions.
KOIN has climbed 40% in the past 12 months to stand at $ 44.25 at the close on October 29.
The pandemic has been particularly beneficial for the industry and KOIN, as employees had to work from home during the lockdown and relied on technology for everything from communications to electronic payments to ensure they were doing their jobs correctly. and in complete safety.
The rise of e-commerce has also benefited companies involved in areas such as digital payments, electronics, and home entertainment such as video games, which are particularly relevant to KOIN stocks.
Planned assessment of the global fintech market by 2026
According to Market Data Forecast, the global fintech market is expected to reach a market value of $ 324 billion by 2026 at a compound annual growth rate of 23.4%. The main drivers will be payments, e-commerce, banking, social commerce and wealth management.
Analysts are optimistic about the future of fintech. ZMK Capital wrote in In search of the alpha, âFinancial innovation will be a theme of the future. Broad deregulation coupled with technological innovation increasingly provides a platform for companies to bring revolutionary value propositions to market. “
Critics weighing KOIN
The recent semiconductor shortage has weighed on the companies in which KOIN has invested. The shortages have proven difficult for automakers and electronics companies and have been further exacerbated by cutbacks in the global supply chain. These could be fatal to some of the components of KOIN.
An economic downturn that could put pressure on the capital spending plans of companies, especially SMEs, can also hurt the KOIN share price.
In some countries, such as the UK, the rise of technology has also revealed a significant digital skills gap. As a result, although the technology offered by the KOIN companies may be excellent, there are no users for it, and therefore no buyers.
Fortunately, this is an issue that KOIN companies like Salesforce are tackling. The company has rolled out digital learning courses to help people develop their skills.
âFinancial innovation will be a theme for the future. Broad deregulation coupled with technological innovation increasingly provides a platform for companies to bring revolutionary value propositions to market â- ZMK Capital
Parts of KOIN
Launched in January 2018, KOIN has 43 participations. Nvidia Company [NVDA] has the largest weighting of 4.6%, Salesforce [CRM] holds 4.33%, Microsoft [MSFT] 4.2%, NestlÃ© [NESN] 4.1%, Amazon [AMZN] 3.95% and Taiwan Semiconductor [TSM] 3.82%, as of October 28.
The ETF tracks the performance of the ATFI Global NextGen Fintech Index, which has been developed to capture the performance of diversified exposure to companies that use or are involved in fintech technology innovation.
This includes digital asset providers – companies that use technology to increase operational science, optimize settlement processes, improve customer experience, increase data security / integrity, and create digital assets.
It includes solution providers or companies that help companies and financial services organizations adopt and implement the latest technologies and applications.
The ETF also provides exposure to investors interested in cryptocurrency payments, but who are too risk-averse to invest directly in this volatile space.
Number of participations in the KOIN ETF
Sum of its constituents
Nvidia shares have climbed 99% in the past 12 months as its chips have helped power video games, cryptocurrency miners, and data centers. It recently reported record second quarter revenue of $ 6.51 billion, up 68% from the previous year.
Salesforce revenue has grown as businesses accelerate their digital transformation, while Amazon has taken advantage of the boom in e-commerce and people staying in to watch its streaming service Prime.
Taiwan Semiconductor also performed well, supported by a global semiconductor shortage and subsequent price hikes.
KOIN, according to Yahoo Finance, has posted a total daily return of 15.39% year-to-date and has total assets of $ 30.9 million.
Overall, fueled by digital transformation and the rise in online payments, including the rise in cryptocurrency, it looks like KOIN has a lot more room to grow.
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