January 18 Shares of the company Reality and Amplify Trust Advisors launched the first exchange traded funds (ETF) blockchain on the Nasdaq and new York stock exchange (NYSE). These funds are not relevant to the ETF on the basis of bitcoin, and intended for investment in blockchain startups.
Both funds began their work at 9: 30 Eastern time. Reality Shares Nasdaq NextGen Economy ETF (BLCN) began trading on 24.2 per dollar, and the Fund Amplify Transformational Data Sharing ETF (BLOK) is approaching $ 20.
Both ETF will invest solely in the blockchain. When submitting brochures in November 2017, both companies said that investing in blockchain startups can be risky due to the regulation of technology and lack of confidence in the profitability of projects. However, the prospectus also noted that the funds will be invested only in companies with a market capitalization of over $ 200 million and average daily trading volume for the six months of not less than one million dollars.
Reality Shares has developed, with the Nasdaq index to track the blockchain startups that will Finance ETF said Salehizadeh Kian (Kian Salehizadeh), analyst at Reality Shares. The research group of the blockchain Nasdaq – one of the creators of the index, which is also supported by an algorithm developed by Reality Shares. Salehizadeh notes:
«We wanted to make the ETF with reference to the technology of the blockchain, so it’s not just another Fund for bitcoin – it will work with the basic technology of the industry. Therefore, we developed a methodology which measured seven quantitative factors, we control these factors in the universe of stock quotes».
He also said that the ETF company name originally contained the word «blockchain», but the Commission on securities and exchange Commission (SEC) has forced the organization to clean it.
Although the SEC has not formally endorsed ETFs, the lack of official withdrawal deadlines means that the ETF automatically approved in accordance with the current legislation, explained Salehizadeh. Currently, the SEC is 75 days for issuing a negative decision or objection to launching ETFs. If this does not happen, then the funds can be added to the list of exchange instruments.
Other companies had previously applied for ETF blockchain, but none of them achieved the success of Reality Shares funds and Amplify Trust. One of the latest such applications were filed
Horizons ETF Management in November of last year.