Just as the global cryptocurrency market is hitting its biggest rough patch in
months, two new ETFs
based on blockchain
technology are making their market debuts. The Reality Shares Nadaq NextGen Ecconomy ETF (NASDAQ: BLCN) and the Amplify Transformational Data Sharing
ETF (NYSE: BLOK) are now open for business.
Here’s what investors need to know
about each.
The BLCN ETF
The BCLN ETF holds shares of companies that committee “material resources” to blockchain technology research and development.
Each company included is analyzed and assigned a “Blockchain Score” by the Reality Shares board. The Blockchain Score quantifies
how much each company is expected to benefit from the advancement of blockchain technology.
Every six months, the BCLN is rebalanced to include the 50 to 100 companies with the highest Blockchain Scores. The index
weighting is also rebalanced based on Blockchain Score as well.
According to the Reality Shares website, the BCLN’s initial top holdings
include Intel Corporation (NASDAQ: INTC),
Overstock.com Inc (NASDAQ: OSTK) and
International Business Machines Corp. (NYSE: IBM).
The BLOK ETF
The BLOK ETF also focuses on companies that are developing blockchain or blockchain-related technology. Holdings include
companies researching, implementing and profiting from blockchain technologies. It also includes companies with blockchain-related
partnerships that could prove financially beneficial. Amplify classifies each company included in the index as either “core” or
“secondary” based on how closely-tied the company’s business is to blockchain development.
Amplify has said it plans to be particularly active in managing the BLOK fund to make sure it stays on top of the
rapidly-changing blockchain landscape. The fund’s holdings and balance could potentially be adjusted on a daily basis. Subadvisor
Toroso Investments will select the fund’s holdings and manage its investment strategy, while Exponential ETFs will construct the
portfolio and execute trades.
According to the Amplify website, top
holdings include Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE: TSM), DIGITAL GARAGE (OTC: DLGEF) and SBI HOLDINGS INC (OTC: SBHGF).
Blockchain Could Be The Real Cryptocurrency Winner
Cryptocurrencies like bitcoin and Ethereum have generated a lot of excitement among investors, but some experts say the
underlying blockchain technology, not the cryptocurrencies themselves, is the real gold mine for investors.
“This is an industry that we think that over several decades will be as revolutionary as the internet. We're going to have
several million people working in this industry, if not tens of millions," Antonis Polemitis, blockchain expert and CEO of the
University of Nicosia, said this week, according to CNBC.
Gartner estimates that blockchain technology could add $3.1 trillion in value to the global business world by 2030.
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