OPTO Sessions

Blockchain’s Prospects in 2025: Amplify CEO Christian Magoon Joins OPTO Sessions

If anyone knows exchange-traded funds (ETFs), it’s Christian Magoon. 

Dubbed the “ETF Pioneer” by the Financial Times – and “ETF Jedi” by Ignites – the Founder and CEO of Amplify ETFs has been instrumental in the widespread adoption of ETFs in the US.

Magoon has worked in the space for over 25 years, launching more than 70 funds to date. 

Previously, he was President of Claymore Securities (now Guggenheim Investments), and in 2006 launched Claymore’s successful ETF business (later bought by BlackRock). He’s the Founder of consultancy Magoon Capital, and a previous Senior Vice President at First Trust. A member of Wall Street Journal’s panel on Wealth Management, he regularly appears on US media.

Magoon joined OPTO Sessions to talk about blockchain, to which Amplify offers exposure through its flagship BLOK fund. 

Last year might already seem like a long time ago, but what did Magoon identify as its main headwinds and tailwinds?

“It was a mixed year in the blockchain and corollary crypto equity space,” he told OPTO. However, there was a major turning point last January. “Some of the headwinds ceased when a court case against the SEC was won by an issuer to bring spot bitcoin ETFs to US retail investors…  That really started to change the tides.” 

The blockchain halving last April was also “quite bullish for the blockchain and crypto space”. In addition, MicroStrategy [​​MSTR] was included in the NASDAQ 100. 

And let’s not forget US President Donald Trump, who this time round is backing bitcoin. “Trump has famously pivoted to crypto and blockchain and included many people in the administration that were pro-crypto, pro-blockchain.”

BLOK Party

With more than $10.4bn in assets across over 30 ETFs, Amplify’s products focus on themes including technology, cybersecurity, blockchain and clean energy. BLOK was set up in 2018, giving exposure to a basket of 48 blockchain and crypto equities.

Magoon says: “BLOK returned just over 50% [last] year, with a three-year average annualized return of just over 25% – so an above-average year based off the last three years.” He believes 2025 is shaping up well, and anticipates “more bullish moves” in the space.

An active management approach is central to Magoon’s investment philosophy. 

“In 2018, we looked at whether we should choose an index-based or active strategy.” It was, he says, a no-brainer: “Most indexes rebalance maybe four times a year, often twice. Imagine only being able to invest in the space twice a year, all the developments, new projects and market dynamics you’d not be able to take advantage of.

“Blockchain crypto is a fast-moving space. We felt like being able to buy and sell every single day.”

Magoon says Amplify’s edge is clear – knowledge and history. 

“Many investors only discovered crypto equities or blockchain in the last few years. Our actively managed product and portfolio managers deliver returns to traditional equity investors that help diversify their portfolio, either away from traditional equities or as a barbell to an underlying crypto portfolio that may be quite volatile.”

Digging Deeper with Crypto Miners

Blockchain is about more than bitcoin. But, Magoon admits, “most of the action or excitement in the blockchain space has been on the crypto side”. In 2024, the cryptocurrency’s price rocketed by more than 120%. 

Bitcoin miners are clearly a key bet in the crypto theme, but their outlook is also mixed: while some are performing in line with bitcoin’s growth, others are struggling, says Magoon. 

“We’re starting to see separation in the miners. This is one area where buying an index of all the miners is probably not the way to go because there’s big differences between companies.” In short, you’d be buying “a lot of bad apples.”

To discover which stocks have potential, the questions you’d ask are the same as for any company: “What does their balance sheet look like? What is their access to technology and capital? What is their cost of power, their input cost to mine bitcoin? What is their strategy?” 

Some miners, he says, are now landing lucrative contracts from hyperscalers, which run large-scale data centers.

That’s why, in his opinion, “an active manager approach, and research, are really important.”

What’s Ahead for Amplify and Blockchain ETFs?

In such a crowded space, are there any stocks Magoon is especially excited about?

BLOK’s top 10 holdings include Core Scientific [CORZ], a mining firm that has “successfully migrated from bitcoin mining to AI-data centers. They are looking at about 50-50 in terms of their revenue coming in 2025 from bitcoin mining and operating data centers for hyperscalers. These are long-term contracts.”

Another hot tip is CleanSpark [CLSK], “another innovative mining company. What sets them apart is that their financials are very attractive. They have good operators, but also have been quite aggressive in talking about how they can use the bitcoins on their balance sheet to create a new form of cash flow.”

Finally, Magoon is buoyant on blockchain-related funds, including spot ETFs, which open up a world that was previously opaque for many investors. “It further legitimizes that industry and the assets primarily focused in it. 

“One analogy we’ve heard is, if you look at gold, it’s an asset people have owned for years. There’s a way to also have exposure to gold through equities – old gold mining companies, gold exploration companies. Often those can deliver a different return experience.”

Is blockchain the new gold? This year might be the year we find out. 

Listen via Apple PodcastSpotify, or watch on Youtube.

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