Amplify ETFs and Reality Shares Launched Blockchain ETFs
Amplify Investments and Reality Shares launched blockchain-focused exchange-traded funds (ETFs) with the tickers BLOK and BLCN respectively.
On Wednesday, Amplify Investments LLC and Reality Shares Inc launched two exchange-traded funds (ETF) that track publicly-traded companies related to blockchain technology. Amplify Transformational Data Sharing ETF is traded on the NYSE Arca with the ticker BLOK and has an expense ratio of 0.70%, while Reality Shares Nasdaq NexGen Economy ETF is traded on the NASDAQ with the ticker BLCN.
Earlier, we reported that both companies filed with the Securities and Exchange Commission (SEC) for approval of the ETFs, and the SEC required the fund issuers to exclude “blockchain” from the names if the tracked companies are not entirely focused on the technology.
BLCN tracks the Reality Shares Nasdaq Blockchain Economy Index, which is made up of companies committed to researching, implementing, supporting, and applying distributed ledger technology for different use cases. The index includes names like SAP, Overstock, Accenture, and Hive.
Eric Ervin, CEO of Reality Shares, commented on the index:
“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.”
“In order to fully harness the potential of this exciting sector, we teamed up with other well-known groups – Nasdaq and the experienced members of our advisory board – to vet and qualify blockchain companies and identify trends and initiatives in our pursuit to become the leaders in blockchain investing,” he added.
As for Amplify’s BLOK, it will track companies like Citigroup, Nvidia, IBM, Square, and Overstock among others. Even though some of these firms are not directly involved with blockchain technology, all of them have an interest in supporting the technology’s application.
Christian Magoon, CEO of Amplify ETFs, told CBNC:
“We think the blockchain technology is going the transform the leaders in investment and research into this technology. We are trying to skate where the puck is going to be in the future.”
Three other companies have also reportedly filed with the SEC to get approval for funds tracking blockchain-related companies and it remains to be seen how their applications progress.