JThe BlueStar Fintech Index fell 10% in 2021, but is still up 40% in recent years, highlighting the potential of financial technology (fintech) and new launch Direxion Daily FinTech Bull 2X Shares (FNTC).
When the COVID-19 pandemic first hit capital markets in 2020, one of the sectors that looked strong was the fintech industry. With social distancing measures in place, the idea among investors was that contactless payments would increase and companies at the forefront of the disruptive industry would thrive.
Now that the global vaccine effort is beginning to allay fears despite the latest Omicron variant, the fintech bubble may be losing air, but the potential for growth is still there. Fintech-focused startups still enjoy strong venture capital funding around the world.
“The global startup the fundraising boom lifted nearly every industry you can name: Edtech took off during the pandemic, software in general got a boost, and even riskier, long-term bets like the space tech and biotech are doing well in today’s venture capital fundraising market,” TechCrunch+ notes. “But no category or niche in the startup world has done better than fintech or fintech.”
“Across the globe, fintech startups have raised simply staggering capital, with geographies like Latin America, Africa, North America, and more seeing neobanks, payment companies, new consumer-facing lending services, cryptocurrency on-ramps from the traditional banking world, trading apps and other subsectors kicking up tectonic rounds of investors eager to put their own capital to work in the craze,” adds TechCrunch+.
Double exposure to fintech
Traders sensing the uptrend ahead for fintech after a stagnant 2021 can look to FNTC for play going forward. The fund is driven by the Indxx US Fintech and Decentralized Finance Index. It includes companies offering technology-enabled financial services and facilitating decentralized financial infrastructure, which disrupt existing business models in the financial services industry by United States.
The index includes the following subtopics: digital payments, point of sale (POS), personal finance software and credit/debit card issuers, tax compliance software and backend payment processing, decentralized finance, enterprise solutions finance and peers – peer-to-peer lending and crowdfunding. Companies involved in business activities associated with these subtopics will be eligible for inclusion, and eligible companies deriving at least 50% of their total revenue from these subtopics will make up the shortlist.
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