Reality Shares, an innovative asset management firm, exchange-traded funds (ETFs) issuer and index provider, launched an ETF to invest in leading global companies creating and implementing blockchain solutions.
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“We wanted to do a blockchain technology-related ETF, so not another bitcoin fund but something that takes advantage of the underlying ecosystem. So we developed a methodology in-house which measures seven quantitative factors and we run those factors on a universe of publicly traded [data],” said Reality Shares analyst, Kian Salehizadeh.
The Reality Shares Nasdaq NexGen Economy ETF (Nasdaq: BLCN) will hold between 50 to 100 constituents at any given time.
“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 Eric Ervin, CEO of Reality Shares.
“Furthermore, blockchain is still in its infancy, and we are confident it will have far-reaching, disruptive effects in nearly every industry. 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.”
Rebalancing semiannually, it tracks the Reality Shares Nasdaq Blockchain Economy Index, which is comprised of companies committing material resources to developing, researching, supporting, innovating or utilizing blockchain technology for their proprietary use or for use by others.
In order to qualify for inclusion in the underlying index and BLCN, companies must receive a high Blockchain Score™ based on the following characteristics: role in blockchain ecosystem, blockchain product stage, blockchain economic impact, Blockchain Institute membership, research and development expenditure, company filings and innovation.