The blockchain exchange-traded funds known as Reality Shares Nasdaq NexGen Economy ETF (BLCN) and Amplify Transformational Data Sharing ETF (BLOK) launched on Nasdaq and the New York Stock Exchange Arca on January the 17th. The funds started to be traded at 9:30 am EST. This is an important step for ETFs, cryptocurrencies and blockchain technologies.
ETFs Capturing Financial Attention
These two funds hold some important companies like Overstock, IBM, Intel, NVIDIA and others. BLCN will focus less in Small Cap enterprises but more International corporations. At the same time, BLOK will have a slightly different strategy by investing more in small cap businesses than BLCN but less focused on international corporations.
Let’s have a comparison between these two ETFs. BLCN will have a passive strategy while STOK will implement an active strategy. That means that according to the framework during the coming months, we will see a different strategy between these ETFs.
The fee will be similar 0.68% for BLCN and 0.7% for STOK. As we have mentioned before, BLCN will focus in international corporations with a rate of 61% and STOK at 40%. The small Capitalization enterprises will be 8% for BLCN and 19% for STOK.
Among the companies that these two ETFs invest in we can find several Blockchain projects.
Eric Ervin, Reality Shares Co-Founder and CEO commented during an interview with Bloomberg:
“We think that Blockchain is going to be one of the most transformational technologies since the internet. In a very long term, cycles are going to play out and companies that are using blockchain in their businesses are going to be impacted both in increase of revenues and decreased fees and the overall structure.”
Blockchain Technology Increasing in Importance
We have witnessed how Blockchain technology has been growing in different fields. Governments, enterprises, institutions, start-ups are using this technology to offer better products and services. With the ETFs, the market is receiving a good opportunity to place its bet in these enterprises and technology.
Reality Shares, with an index developed with Nasdaq, is able to track blockchain start-ups that the ETF would utilize.
Kian Salehizadeh, analyst at Reality Shares, said:
“We wanted to do a blockchain technology-related ETF, so not another bitcoin fund but something that takes advantage of the underlying ecosystem. So we developed a methodology in-house which measures seven quantitative factors and we run those factors on a universe of publicly traded data.”
During the last weeks of December, the Chicago Mercantile Exchange and the Chicago Board Options Exchange launched Bitcoin futures. Nasdaq is also going to launch these bitcoin futures during the first quarter of 2018.
Now, investors have the choice to invest in different blockchain companies and in cryptocurrencies. Institutional money keeps flowing to cryptocurrencies and the blockchain world. During this year we will see whether the industry gets more mature or it will require longer time to achieve its purposes.
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Tags:Amplify Transformational Data SharingbitcoinBLCNBlockchainBlockchain TechnologyBTCCryptocurrenciesETFETFsInvestmentNasdaqNew York Stock ExchangeNYSEReality SharesStock MarketSTOKUnited StatesUSAVirtual Currencies