Fund producers are trying a new angle in the race to create a cryptocurrency ETF
Early this year, the US Securities and Exchange Commission (SEC) shot down two separate proposals for a Bitcoin ETF. Now, as cryptocurrencies enjoy an unprecedented surge in demand, the SEC has received two new crypto-ETF proposals — with a twist.
Reality Shares and Amplify ETFs, two US-based investment firms, have filed separate papers with the SEC to start cryptocurrency ETFs specifically related to blockchain rather than Bitcoin, reported cryptovest.com.
Reality Shares is looking to list the Reality Shares NASDAQ Blockchain Economy ETF on the NASDAQ Stock Market. According to its SEC filings, it seeks long-term growth by tracking the Reality Shares NASDAQ Blockchain Economy Index.
The index includes “companies that are committing material resources” to research, innovation, or use of blockchain technology “for their proprietary use or for use by others.” It selects companies with market caps exceeding US$200 million, which are then ranked based on a proprietary “Blockchain Score” system. Only the top 50 to 100 companies are included in the index.
Meanwhile, the Amplify Blockchain Leaders ETF is being pushed for inclusion on the NYSE Arca. According to Amplify, the ETF will select companies with over US$200 million in market capitalization.
As for the industries covered, the fund will include companies that are “actively engaged in the proof-of-concept testing, and/or implementation of blockchain technology.” Companies that profit from the demand for blockchain-based applications like cryptocurrency and mining, as well as those actively developing ways to use blockchain technology, are also included.
“We believe there’s a ‘pick and axe’ play here, where we’re not just looking to sell the gold, but also the equivalent of the mining equipment,” said Amplify CEO Christian Magoon in an interview with MarketWatch.
While Bitcoin has had many detractors, some have been careful to direct their criticism at the cryptocurrency itself rather than at the underlying platform. Blockchain technology has long been recognized as having potential benefits for asset managers beyond its most popular application in cryptocurrencies.
Related stories:
Is now the time to invest in Bitcoin?
Blockchain firm gets a shot in the arm
Reality Shares and Amplify ETFs, two US-based investment firms, have filed separate papers with the SEC to start cryptocurrency ETFs specifically related to blockchain rather than Bitcoin, reported cryptovest.com.
Reality Shares is looking to list the Reality Shares NASDAQ Blockchain Economy ETF on the NASDAQ Stock Market. According to its SEC filings, it seeks long-term growth by tracking the Reality Shares NASDAQ Blockchain Economy Index.
The index includes “companies that are committing material resources” to research, innovation, or use of blockchain technology “for their proprietary use or for use by others.” It selects companies with market caps exceeding US$200 million, which are then ranked based on a proprietary “Blockchain Score” system. Only the top 50 to 100 companies are included in the index.
Meanwhile, the Amplify Blockchain Leaders ETF is being pushed for inclusion on the NYSE Arca. According to Amplify, the ETF will select companies with over US$200 million in market capitalization.
As for the industries covered, the fund will include companies that are “actively engaged in the proof-of-concept testing, and/or implementation of blockchain technology.” Companies that profit from the demand for blockchain-based applications like cryptocurrency and mining, as well as those actively developing ways to use blockchain technology, are also included.
“We believe there’s a ‘pick and axe’ play here, where we’re not just looking to sell the gold, but also the equivalent of the mining equipment,” said Amplify CEO Christian Magoon in an interview with MarketWatch.
While Bitcoin has had many detractors, some have been careful to direct their criticism at the cryptocurrency itself rather than at the underlying platform. Blockchain technology has long been recognized as having potential benefits for asset managers beyond its most popular application in cryptocurrencies.
Related stories:
Is now the time to invest in Bitcoin?
Blockchain firm gets a shot in the arm
