Two Blockchain-Based Funds Launched On Nasdaq Today - Without SEC Formal Approval, Though
Reality Shares Advisors and Amplify Trust ETF, two companies that filled for an ETF (exchange-traded fund) back in November, launched their products on Nasdaq today.
Reality Shares' ETF is called Nasdaq NextGen Economy ETF (BLCN - real-time stats), and opened at $24.20, and Amplify Trust' ETF is called Transformational Data Sharing ETF (BLOK - real-time stats) and it started closer to $20.
The two funds will invest in blockchain-based startups which fall under these conditions (among many other, obvious):
- a market capitalization of greater than $200 million
- a six-month daily trading average of at least $1 million
The interesting part of the news is that the two funds didn't get a formal approval from SEC, but, under the current law, the lack of a formal disapproval means the ETFs were automatically approved, or at lest that's what I understood from this story published by Coindesk. The same story also says:
At present, the SEC has 75 days to issue a disapproval or objection to an ETF filing. If no such disapproval or objection is stated, the funds can be listed.
These funds couldn't come at a better time for investors, since the market is down with almost 50% since two days ago.
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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I doubt the SEC will refrain from objecting given the magnitude of the losses over the past few days. This was the worst possible time to launch these funds as the SEC will have the perfect excuse.
So, these ETF's aren't investing directly in crypto, but rather in the stock of companies that have blockchain based business models? Like Long Island Iced Tea - now Long Blockchain Corp - or Kodak (thank goodness they didn't change their name)? It's an interesting development to be sure. We'll have to wait and see if the SEC leaves them intact.
Those two are probably too small for their criteria. And how many publicly traded blockchain startups are there? No, they invest in existing corporations that have some exposure to blockchain technology, but are mostly active in other areas. BLOK's top 10 is Taiwan Semiconductor, Digital Garage, SBI Holdings, Overstock, IBM, Nvidia, Square, Hive Blockchain Technologies, GMO Internet and SAP. Reality Shares mentions SAP, Overstock, Hitachi, Accenture and Hive Blockchain Technologies.
Ok, that makes far more sense. Although I would think Kodak is big enough for them, but has been such a dog they wouldn't want to invest. I kinda like the BLOK holdings.
best news I've heard today.
lookin at all that red is depressing.
Not able to buy them with my broker. Maybe they will be available in a few days with Robinhood.
Very good news indeed! Reassuring to see that people aren't running away screaming yet.
I have a question that's sort of unrelated to your post above. I was reading through a couple posts yesterday regarding STEEM & SBD almost being at parity. I believe you commented in one of them about how SBD is being issued exceptionally fast right now, as part of the 'debt smart contract' that operates within steem.
I was hoping you could explain two things:
Thanks!
the price feed bias, look at the http://steemd.com/witnesses in the "Bias" column to see which witnesses are using this tool.
SBD is printed only for rewards, as of now.
Thanks for the answers -- I appreciate it.
Thanks for sharing information
Very good news. Thanks for sharing the issue. @dragosroua
Informative news
This will be interesting to see how it plays out with the SEC. I feel like this may set a precedent too.
Good news for blockchain industry. There will be more and more adoption of this technology. There are so many use cases.