Reality Shares CEO More Confident About Blockchain Than Cryptocurrency
The CEO of Reality Shares said in an interview for Bloomberg that his company had decided to launch a blockchain-related ETF because the technology is “bigger than Bitcoin.”
Reality Shares CEO Eric Ervin has told Bloomberg that the distributed ledger technology, more popularly known as blockchain, is “a lot bigger than Bitcoin.” This is the reason why Reality Shares opted to launch a blockchain-related exchange-traded fund (ETF) rather than a cryptocurrency-focused vehicle. The Reality Shares Nasdaq NexGen Economy ETF (BLCN) went live last week.
“I’m not an anti-cryptocurrency person at all, but we are big believers in the technology. If you think about the technology versus the cryptocurrency itself, the cryptocurrency is as far out on the speculative spectrum as you could possibly go,” Ervin said in an interview for Bloomberg after the ETF launch.
“As you walk yourself back, you get to the infrastructure -- the people who are building out the infrastructure and providing the services on that infrastructure. Those are the people that you can count on. It’s more measurable and it’s easier to monetize innovation if you’re a service provider in the innovation cycle,” he added.
Reality Shares Nasdaq NexGen Economy ETF was launched on NASDAQ on the same day that Amplify Transformational Data Sharing ETF (BLOK), another blockchain-oriented ETF, began trading on the NYSE. So far, investors have spent about $180 million on the two ETFs, with BLCN raising $57.9 million and seeing more than 900,000 shares traded on Tuesday. This performance is impressive considering that other ETFs launched since October trade about 15,000 shares a day.
The Amplify ETF has gained 6.4% since its launch, while the Reality Shares ETF has added 3%. In comparison, the S&P 500 index has climbed 2.3% over the same period.
The two ETFs are performing well although the Securities and Exchange Commission (SEC) has obligated the companies to include the term “blockchain” in the fund names. The SEC is is actually quite serious when it comes to using “blockchain” in a product or company name.
When asked if his company was developing other blockchain-related products, Ervin said:
“We’re looking at an advisory business, as well as offering our ETF in a tokenized format on a blockchain exchange. We might be the first ever ETF on an exchange like that.”