Reality Shares launches the first China Blockchain ETF in the world
In an effort to capitalize on China's innovation in cryptocurrency, asset management firm Reality Shares launched the country's first blockchain ETF. The company says its goal is to "democratize the best investment ideas in the world."
According to a statement released on June 20, the Nasdaq NexGen Economy China Reality Shares ETF (Nasdaq: BCNA) will focus on Chinese companies committed to "developing, researching, supporting or using the blockchain". Investors can talk to a financial advisor about adding the ETF to an account or investing directly on the Reality Shares trading platform.
Companies are assessed through seven key factors, including their role in the blockchain ecosystem, blockchain membership, and the blockchain product stage. Companies must score high for these features in order to qualify for BCNA. Reality Shares asserts that its methodology is based on a series of quantitative factors and is designed to "identify and evaluate the best-rated companies" in the blockchain universe.
The BCNA is composed of 31 constituents and currently needs to be rebalanced twice a year. Reality Shares CEO Eric Ervin says it gives investors the opportunity to easily access China's emerging blockchain market.
He noted that the Asian nation "is rapidly becoming a global epicenter for blockchain innovation" and believes that its blockchain industry "presents an incredibly exciting and long-term investment opportunity."
The company hopes that BCNA will continue to benefit from the overall growth of the Chinese economy. They point out how the country has several features that should be attractive to investors.
These include "the historical non-correlation with the US market, the size of its stock market and the high quality of credit." They also note that China has filed the most important patents in 2017.
Reality Shares entered the blockchain ecosystem in January after launching an ETF for investors interested in the companies that create and implement the blockchain.
Reality Shares' Nasdaq NextGen Economy ETF (Nasdaq BLCN) is comprised of companies that devote material resources to the development, research, support, innovation or use of blockchain technology for their exclusive use or others. .
The companies involved in the funds are studied and validated by the Reality Shares Advisory Board. Members include Eric Voorhees, founder of Shapeshift, Marco Santori, president and legal director of Blockchain.com, Jeff Garzik, a early bitcoin developer and creator of Metronome, and Matthew Roszak, founder of Tally Capital.
