Bitcoin Loses The Race To Be The First Blockchain ETF?

The talks about Bitcoin exchange-traded funds (ETFs) making it to a prominent exchange have been in the news for a couple of months now, and they gained momentum after Bitcoin futures made their way to the Chicago Board Options Exchange in December.

However, while Bitcoin ETFs are still trying to make their debut, two other companies have beat Bitcoin to the race of being the first blockchain based ETFs.

The ETFs in question are from Amplify Investments LLC and Reality Shares Inc, and they are being launched for the companies on the New York Stock Exchange Arca and Nasdaq, respectively.

These are the first blockchain based ETFs

Amplify and Reality Shares have created history by being the first ETFs to invest in companies that, in this initial era of blockchain’s more broad adaptability are considered as industry leaders, for the research and investment that they have put into the technology.

With their strategy of having multiple well-known companies in the list of their holdings and not just blockchain based startups, the strategy that these funds have taken was smart enough to get the ETFs to make it to their respective exchanges while also ensuring that they stay true to their goal of investing in blockchain friendly companies.

The process of deploying these ETF’s was not simple. The Securities and Exchange Commission asked the companies not to include the word “blockchain” within the title of their ETFs if the stocks they hold do not have companies collecting a significant portion of their earnings through blockchain.

It makes sense, and many companies are seeking to cash in on market sentiment by merely announcing that they are blockchain related.

Since both ETFs hold the names of a few companies that generate revenue through other sources, they agreed to drop “blockchain” from their titles and made their debut as, Amplify Transformational Data Sharing ETF and Reality Shares Nasdaq NexGen Economy ETF.

That being said, they kept their tickers, BLOK for the Amplify ETF and BLCN for the Reality Shares ETF.

About the top 10 holdings for these ETFs

The top 10 holdings for the Amplify ETF are listed below:

  • Taiwan Semiconductor
  • Overstock
  • Digital Garage
  • SBI Holdings
  • IBM
  • Nvidia
  • Square
  • Hive Blockchain
  • GMO Internet
  • Intel

The following is a list of top 10 holdings for the Reality Shares ETF:

  • Overstock.com
  • IBM
  • SBI Holdings Inc.
  • Hitachi Ltd.
  • Cisco Systems
  • Intel
  • Microsoft
  • ZTE Corp.
  • NVIDIA
  • SAP SE

While some of them are technological giants that still have to establish themselves as significant users of blockchain to the laymen, a few have already done so very successfully.

For instance, Overstock has shown significant interest in blockchain technology recently, and one of its subsidiaries also announced a blockchain based platform, tZERO.

SBI Holdings and GMO Internet are Japanese groups of companies that have been making tremendous efforts for blockchain technologies.

Whereas, IBM is now known as the leading enterprise blockchain solution provider – having most recently announced its global blockchain venture with shipping corporation A. P Moller-Maersk.

The companies are excited about their offerings

In a statement released by Amplify ETFs’ CEO, Christian Magoon expressed his excitement about the new ETF and explained how it would provide investors with the opportunity to associate with the rapidly growing blockchain technology, and reap its rewards when it starts being mainstream in the future.

“We are excited to offer BLOK as a professionally-selected, convenient and responsive way to invest in a basket of the leading companies engaged in advancing blockchain-based technology,” Magoon said before he adding further to his statement. “BLOK may offer growth-oriented investors an attractive way to gain diversified exposure to a new technology whose impact has been compared to that of the internet.”

Eric Ervin, CEO of Reality Shares, also shared his opinion about blockchain technology and how it provides an opportunity for investors to have long-term benefits.

“The blockchain ecosystem potentially presents one of the most profound, long-term investment opportunities many of us have or will ever see in our lifetime,” said Ervin.

He further mentioned that since blockchain is still going to develop further and has a long way to go, it will have significant effects in every aspect of life once different industries discover its potential from their perspective.

“Furthermore, blockchain is still in its infancy, and we are confident it will have far-reaching, disruptive effects in nearly every industry,” he said.  

Ervin explained that they had selected their holdings after a careful vetting process to identify those companies that have higher chances of becoming industry leaders and as a result, for their own company to be established as a leader in blockchain investment.

By | 2018-01-20T05:16:53+00:00 January 20th, 2018|News|0 Comments

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