New York launches the first stock investment fund on the basis of the blockchain

The organizations of Reality Shares Advisors and Amplify Trust ETF launched today the first stock investment funds (ETF) on the basis of blockchain on the Nasdaq exchange and on the New York Stock Exchange.

Both funds began to operate at exactly 9:30 am ET. Shares of the fund “Nasdaq NextGen Economy ETF” (BLCN) opened at a level of $ 24.20. And the shares of Amplify Transformational Data Sharing ETF (BLOK) approached the price of $ 20.

These exchange-traded funds will invest funds exclusively in companies engaged in the blockchain. When in November 2017 the written offer of securities was first issued, the companies noted that investing in block-start-ups is very risky. In this technology, there are certain restrictions, because of which you can stay without profit.

However, it is now noted that only companies with a market capitalization of more than $ 200 million and an average daily trading volume of at least $ 1 million within six months will be eligible for investment.

Reality Shares, together with Nasdaq, has developed an index to track blockchain start-ups that use exchange-traded funds, analyst Kian Salehizadeh said. The Nasdaq research group is among the developers of the new index. In his work, the algorithm invented by Reality Shares is used.

Salehizadeh said:

We want to create a stock exchange investment fund with a link to the technology of blockchain. Not an ordinary hedge fund for bitcoins, but something that the entire ecosystem can use. Therefore, we have developed a methodology in which we measure seven quantitative factors. We manage these factors based on a set of publicly available data.

He also added that the new stock market initially contained the word “blockchain” in the title, but the US Securities and Exchange Commission (SEC) forced the creators to change the name.

Applications for the approval of bitcoin-funds by this department have not yet been approved. However, in accordance with the current legislation, due to the absence of official objections, exchange funds are automatically approved. At the moment, the SEC has 75 days left to raise objections to the creation of funds. If no claims are made, the funds will be finally admitted to trading on the exchanges.

Various companies have previously applied for the creation of exchange investment funds. For example, Horizons ETFs Management submitted its application in November.


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