Why 5G and Crypto Operate Hand in Hand: The decentralized telecommunication company, Helium recently raised $200 million in a round of Series D funding. After achieving a $1.2 billion dollar valuation, attention is now shifting to the many opportunities that Helium is proving possible when it comes to the future of 5G stocks and other transformative technological innovations.

Incentivizing its users with crypto-tokens, Helium runs 5G and Lora WAN networks that enable the Internet of Things (IoT) connections. Their IoT / crypto synthesis suggests that the rise of Helium could mark a seismic shift when it comes to IOT, crypto, 5G stocks and other disruptive industries and products.

The Helium Proposal

Originally established in 2013 as a peer to peer (P2P) wireless network, Helium was transformed into a fully decentralized telecommunications company in 2019. Helium invites users to become part of its growing network by offering them crypto-tokens called HNT. This serves as a demonstration of how 5G networks of all types could potentially get new players involved in their emerging networks.

Helium miners construct hotspots and connect them to their Helium systems. The hotspots then use the owner’s internet connection and power supply to support the Helium network. Businesses and developers are then able to use their IoT devices on that network. There are two methods for earning HNT, the first being transferring data from local connected devices.


HNT can also be earned in return for Proof of Coverage (PoC), the point when Helium hotspots check each other’s signal to verify that the Helium network is operating as anticipated. At that point, owners receive their HNT for both checking and being checked.

The Helium hotspots that were first to arrive on the scene created a LoraWAN network for IoT using Long-Fi radio signals. In September 2021, Helium started shipping FreedomFi next-gen hotspots capable of creating a 5G network, firmly starting the decentralized 5G internet movement.

5G Networks Are On the Rise

Intrigue around 5G stocks is understandable considering the rapid adoption of 5G networks around the world. The Helium 5G network itself is expanding at a pace that may reach 40,000 small cells prior to the end of 2022. That would be a broader expansion than Verizon’s anticipated small cell network of 30,000. In the meantime, the HNT token rose from $1.35 in January 2021 to $38.7 by year’s end.

Companies like Helium aren’t just attracting attention due to the potential it shows in boosting profits. They also show great promise when it comes to bringing the worlds of IoT and Crypto into the 5G fold.

The Growing Availability of 5G Coverage

The ability to support smart systems is just one key aspect of Helium’s potential for altering our technological experiences. The impact it could have on 5G is exciting, too. Analysts are of the belief that small cell deployments are the only feasible way for network providers to accomplish true 5G coverage with high-band frequency capabilities.

Regardless, small cell deployments have their own set of obstacles. Each needs a physical location of its own, a power source and installation. Complicating matters further is that the U.S. alone would need several thousands for an effective 5G network.

The decentralized setup Helium offers eliminates discord by transforming individually-owned hotspots into a network of 5G small cell radio nodes. “While companies like Verizon or T-Mobile will have to construct and manage thousands of 5G radio nodes and other costly setups within every single city, Helium can accomplish the same network communication by decentralizing and distributing the infrastructure at less than a fraction of a cost”

Adding Utility to Crypto Trading While Encouraging the Adoption of 5G

Ultimately Helium serves as a symbol that has the potential to represent the future of the relationship between crypto trading, IoT and 5G networks. Critics who are skeptical about crypto likely wonder about what real-world uses cryptocurrency has. Since Helium offers users crypto tokens in exchange for users adopting its network there’s potential for widespread adoption of this practice.

This has the potential to lead to a landscape where crypto, 5G and IoT interact seamlessly together. The role of 5G in helping to advance the adoption of other types of technology could have a significant impact on 5G stocks moving forward.

Helium Adds New Energy to Innovative Technology

Helium’s innovations have the potential to advance 5G, IoT, crypto, along with adjacent blockchain markets. There’s no telling what could come next. It would not be surprising if Helium’s announcement leads to an increased interest in 5G stocks, or top 5G companies to invest in.

Those searching for 5G stocks to invest in may benefit from exploring ETFs. These ETFs may provide access to the 5G-related stocks of multiple companies that are shifting the landscape of modern technology, while the diversified ETF structure avoids the risk of over exposure to a single company. 

Important Disclosures:

Fund holdings and sector allocations are subject to change at any time and should not be considered recommendations to buy or sell any security.

The Funds’ investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Please read carefully before investing. A hard copy of the prospectuses can be requested by calling 833.333.9383.

Investing involves risk. Principal loss is possible. As an ETF, the funds may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. The Funds are not actively managed and would not sell a security due to current or projected under performance unless that security is removed from the Index or is required upon a reconstitution of the Index.

A portfolio concentrated in a single industry or country, may be subject to a higher degree of risk. The value of stocks of information technology companies are particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation and competition. The Funds are considered to be non-diversified, so they may invest more of its assets in the securities of a single issuer or a smaller number of issuers.

Investments in foreign securities involve certain risks including risk of loss due to foreign currency fluctuations or to political or economic instability. This risk is magnified in emerging markets. Small and mid-cap companies are subject to greater and more unpredictable price changes than securities of large-cap companies.

The possible applications of 5G technologies are only in the exploration stages, and the possibility of returns is uncertain and may not be realized in the near future.

The “BlueStar 5G Communications Index™”, “BFIVGTR™ Index” (collectively “5G Communications Index”), is the exclusive property and a trademark of BlueStar Global Investors LLC d/b/a BlueStar Indexes® and has been licensed for use for certain purposes by Defiance ETFs LLC.

Products based on the Global 5G Communications Index* are not sponsored, endorsed, sold or promoted by BlueStar Global Investors, LLC or BlueStar Indexes®, and BlueStar Global Investors, LLC and BlueStar Indexes® makes no representation regarding the advisability of trading in such product(s).It is not possible to invest directly in an index.

The Defiance Next Gen Connectivity ETF is the first ETF to emphasize securities whose products and services are predominantly tied to the development of 5G networking and communication technologies. The fund does this by tracking The BlueStar 5G Communications Index. The Fund attempts to invest all, or substantially all, of its assets in the component securities that make up the Index.

Total return represents changes to the NAV and accounts for distributions from the fund.

Median 30 Day Spread is a calculation of Fund’s median bid-ask spread, expressed as a percentage rounded to the nearest hundredth, computed by: identifying the Fund’s national best bid and national best offer as of the end of each 10 second interval during each trading day of the last 30 calendar days; dividing the difference between each such bid and offer by the midpoint of the national best bid and national best offer; and identifying the median of those values.

Diversification does not ensure a profit nor protect against loss in a declining market.

Commissions may be charged on trades.

Go to defianceetfs.com/fivg to read more about FIVG including current performance and holdings information. Fund holdings are subject to change and should not be considered recommendations to buy or sell any securities.

FIVG is distributed by Foreside Fund Services, LLC.

Join the Discussion